Algoma Steel is deeply cheap on price-to-sales in an out-of-favor sector, but it burns cash at -19% of revenue, has missed earnings in 3 of the last 4 quarters and has shrinking sales.
Thesis pillars
- Cash Burning Operations→Stable
- Repeated Earnings Misses↑Improving
- Shrinking Revenue↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Oct 11, 2026
Algoma Steel Group Inc. (ASTL) Stock Analysis
Sector Rotation edge
Basic Materials · Steel
Sell if holding. Engine safety override at $4.94: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.8/10. Specifically: Below-average business quality.
Algoma Steel Group Inc. produces and sells steel products in Canada, the United States, and internationally. The company offers flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for... Read more
Sell if holding. Engine safety override at $4.94: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.8/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.8/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 104d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.
Recent developments
updated 2026-10-29Recent Developments — Algoma Steel Group Inc.
Latest news
- NEWS Algoma Steel Gr Q3 EPS $(0.84) Misses $(0.56) Estimate, Sales $178.221M Beat $173.150M Estimate — benzinga Oct 28, 2026 negative
- NEWS Algoma Steel Group Inc. Reports Financial Results for the Third Quarter of 2026 — fiscal.ai Oct 28, 2026 neutral
- NEWS 'Trump Expected To Remove Some Tariffs On Canada In Bid To Help Susan Collins; The Move, Which Could Come As Soon As Fri — benzinga Oct 23, 2026 neutral
- NEWS CIRO Implements Trading Halt on Algoma Steel Group Inc. Warrants — fiscal.ai Oct 19, 2026 neutral
- NEWS 'US Steel Prices Climb to Four-Year High as Trump’s Tariffs Bite' - Bloomberg — benzinga Oct 16, 2026 neutral
Generated 2026-10-29T11:08:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $4.94: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.8/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $4.59. Score 4.8/10, moderate confidence.
Default target: $5.68 (+15.0% upside). Prior stop was $4.59. Stop-loss: $4.59.
Quality below floor (1.6 < 4.0).
Algoma Steel Group Inc. trades at a P/E of N/A (forward -20.8). TrendMatrix value score: 10.0/10. Verdict: Sell.
6 analysts cover ASTL with a consensus score of 2.2/5.
What does Algoma Steel Group Inc. do?Algoma Steel Group Inc. produces and sells steel products in Canada, the United States, and internationally. The...
Algoma Steel Group Inc. produces and sells steel products in Canada, the United States, and internationally. The company offers flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for the automotive industry, hollow structural tube product manufacturers, and the light manufacturing and transportation industries; and plate steel products consisting of rolled, hot-rolled, and heat-treated for use in the construction or manufacture of railcars, buildings, bridges, off-highway equipment, storage tanks, ships, armored products for military applications, diameter pipelines, and wind energy generation equipment. It also provides by-products, such as furnace and buckwheat coke, braize coke, and flue dust; high sulpur beach and kish iron, BOF pit grissly and scrap, BOF and pellet fines, and mill roll scale; light oil and coal tar; granulated and air cooled slag; and machine shop turnings, used mill rolls, recycled oil, non-ferrous metal, and lime fines. The company was founded in 1901 and is headquartered in Sault Sainte Marie, Canada.