The second largest steel maker in Brazil is very attractively valued

By
A A A

Brazil's second-largest steel maker Companhia Siderurgica National ( SID , quote ) has a high dividend yield, low short float and strong technicals, offering an opportunity for emerging market investors to buy at a low price.

Image courtesy Bill Jacobus: http://www.everystockphoto.com/photographer.php?photographer_id=5927 The company depends heavily on exports to China, and is suffering from the economic slowdown there. Over the last 52 weeks, SID has fallen 41.07%. The iShares S&P Global Materials ETF ( MXI , quote ), is also down by 18.32%, resulting in very attractive buys in the market group.

At this price, SID's numbers have plenty of appeal for growth, value, and income investors.


On a quarterly basis, SID's earnings-per-share growth is up by 84.30%. Over the next five years, earnings-per-share growth is projected to be 13.89%. The forward price-to-earnings ratio is only 5.26, far below the average of 15 for a stock on the S&P 500.

Income investors will like the company's healthy profit margin of 26.9%, and its dividend yield of 7.12%. That is about three times as high as Apple's ( AAPL , quote ) dividend.

Analysts and investors seem confident in Companhia Siderurgica National, which is currently trading around $8.95 per share. The short float is only 1.43%, and the mean analyst target price over the next year is $18.50.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

Referenced Stocks:

Emerging Money

Emerging Money

More from Emerging Money:

Related Videos

Stocks

Referenced

Most Active by Volume

85,117,424
  • $6.78 ▲ 11.88%
77,261,676
  • $17.53 ▲ 1.56%
61,066,548
  • $6.90 ▲ 2.99%
56,847,440
  • $112.65 ▲ 2.96%
52,788,366
  • $7.78 ▲ 1.83%
50,761,400
  • $25.14 ▲ 2.91%
47,781,237
  • $45.35 ▲ 10.18%
45,664,909
  • $7.17 ▲ 2.14%
As of 12/18/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com