Entering text into the input field will update the search result below

Stelco Holdings Trading At Just 2X Earnings Is Aggressively Buying Back Stock

Jan. 01, 2022 11:35 AM ETStelco Holdings Inc. (STZHF), STLC:CA65 Comments


  • Stelco has come off its 52-week highs despite a reduced share count and a blowout earnings report in Q3.
  • The company has just launched a C$250M Dutch Auction buyback program and shareholders are invited to tender their stock at a premium.
  • Stelco is trading dirt cheap but likely has reached its peak and the downcycle in the steel industry starts now.
  • Even if the EBITDA would decrease by 75% vs. 2021, the company is still trading at an EV/EBITDA of less than 5.
  • Looking for a helping hand in the market? Members of European Small-Cap Ideas get exclusive ideas and guidance to navigate any climate. Learn More »
Hot steel being poured to the chute at the steel plant, heavy industry concept. Stock footage. Molten steel production in electric furnaces

Media Whalestock/iStock via Getty Images


In an October article, I was bullish on Stelco Holdings (OTCPK:STZHF), a Canadian steel producer. Stelco predominantly services the domestic market which represents 75% of its output, while the remainder is exported to the US. I was bullish because the steel

Consider joining European Small-Cap Ideas to gain exclusive access to actionable research on appealing Europe-focused investment opportunities, and to the real-time chat function to discuss ideas with similar-minded investors!

This article was written by

The Investment Doctor profile picture
We zoom in on capital gains and dividend income in European small-caps
As I'm a long-term investor, I'll highlight some stockpicks which will have a 5-7 year investment horizon. As I strongly believe a portfolio should consist of a mixture of dividend-paying stocks and growth stocks, my articles will reflect my thoughts on this mixture.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.