3 Key Value Sources for U.S. Steel's Stock

| About: United States (X)

U.S. Steel (NYSE:X) is an integrated steel producer of flat-rolled and tubular products with major production operations in North America and Europe. Despite the company's annual raw steel production capability of 31.7 million tons, it has been unable to capitalize on the recovery in the global steel industry and reported a loss in the last quarter. U.S. Steel is the 10th largest steel company in the world and competes with international steel giants like ArcelorMittal (NYSE:MT), BaoSteel, Posco (NYSE:PKX), Nippon Steel (OTCPK:NISTF) and ThyssenKrupp (OTCPK:TYEKF).

Our price estimate for U.S.Steel stands at $53.36, implying a premium to market price. Below, we highlight the 3 business segments for U.S. Steel that contribute most to its stock value.

1) U.S. Flat-Rolled Steel Business – represents 41% of the company's stock value

Flat-rolled products refer to the steel sheets and plates that are made by rolling processes. The various categories of flat-rolled products include hot rolled sheets, cold rolled sheets, coated sheets, semi-finished bars and plates, and tin-mill products.

This division represents sales to North American customers in the service center, conversion, transportation, construction, container and appliance & electrical markets.

See the top forecasts for the U.S. flat-rolled steel business

2) U.S. Tubular Steel Business – 32%

Tubular products refer to the steel pipes made using flat-rolled steel. The various categories of the flat rolled products include seamless and electric resistance welded steel casing and tubing (commonly known as oil country tubular goods or OCTG), standard and line pipe and mechanical tubing.

This division represents sales to North American customers primarily in the oil, gas and petrochemical markets

See the top forecasts for the U.S. tubular steel business

3) European Flat-Rolled & Tubular Steel Business – 26%

This division includes steel sheets and plates as well as tubular items like pipes that are made by rolling processes and are sold in the European markets. The segment produces and sells slabs, sheet, strip mill plate, tin-mill products and spiral welded pipe, as well as heating radiators and refractory ceramic materials.

See the top forecasts for the European flat-rolled & tubular steel business.

Disclosure: No position