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

95,530,319
  • $15.15 ▼ 1.81%
88,891,852
  • $6.01 ▼ 6.09%
80,331,117
  • $117.16 ▼ 1.46%
75,474,903
  • $40.40 ▼ 3.83%
58,037,145
  • $3.54 ▲ 18.39%
53,961,231
  • $32.92 ▼ 0.12%
51,698,455
  • $23.89 ▼ 0.79%
41,667,475
  • $3.55 ▼ 1.11%
As of 1/30/2015, 04:15 PM


Find a Credit Card

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