Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Metals & Mining - Iron & Steel industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Metals & Mining - Iron & Steel Stock News

Before choosing which top Metals & Mining - Iron & Steel stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The iron & steel industry was negatively impacted by pandemic-related economic shutdowns, supply chain disruptions and freezes in consumption. However, the industry has experienced a swift recovery in domestic steel demand, and steel prices were at multi-year highs at the start of 2021. As of April 28, 2021, steel prices were up 57% from the beginning of the year and up 156% compared to the full-year average price in 2020. Despite the increase in profitability for steel producers as a result, the higher prices may not be sustainable given significant excess capacity. 

Why Focus on Undervalued Metals & Mining - Iron & Steel Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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5 Undervalued Metals & Mining - Iron & Steel Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Metals & Mining - Iron & Steel industry for Monday, November 20, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Metals & Mining - Iron & Steel industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Ascent Industries Co’s Value Grade

Value Grade:

Ascent Industries Co. is an industrial manufacturing company. The Company is engaged in the production and distribution of industrial tubular products, including stainless steel and galvanized pipe and tube, seamless carbon pipe and tube, and specialty chemicals. The Company operates through two segments: Tubular Products and Specialty Chemicals. The Tubular Products segment serves markets through pipe and tube and customers in the appliance, architectural, automotive and commercial transportation, brewery, chemical, petrochemical, pulp and paper, mining, power generation (including nuclear), water and waste-water treatment, liquid natural gas (LNG), food processing, pharmaceutical, oil and gas and other industries. The Company?s Specialty Chemicals segment produces specialty products for the pulp and paper, coatings, adhesives, sealants and elastomers (CASE), textile, automotive, household, agricultural, water and waste-water treatment, construction, oil and gas and other industries.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ascent Industries Co has a Value Score of 94, which is considered to be undervalued.

When you look at Ascent Industries Co’s price-to-sales ratio at 0.32 compared to the industry median at 0.59, this company has a lower price relative to revenue compared to its peers. This could make Ascent Industries Co’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Ascent Industries Co’s shareholder yield is lower than its industry median ratio of 3.39%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Ascent Industries Co’s price-to-book ratio is lower than its industry median ratio of 1.10. This could make Ascent Industries Co more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Ascent Industries Co’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Ascent Industries Co’s price-to-free-cash-flow ratio is lower than its industry median ratio of 8.09. This could make Ascent Industries Co more attractive because the lower P/FCF ratio indicates that Ascent Industries Co is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Ampco-Pittsburgh Corp’s Value Grade

Value Grade:

Ampco-Pittsburgh Corporation manufactures and sells specialty metal products and customized equipment utilized by industry throughout the world. The Company?s segments include the Forged and Cast Engineered Products (FCEP) and the Air and Liquid Processing (ALP). The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products. Its hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid Systems Corporation (Air & Liquid), a subsidiary of the Company. Aerofin Division of Air & Liquid Systems Corporation produces custom-engineered finned tube heat exchange coils and related heat transfer products. Buffalo Air Handling Division of Air & Liquid Systems Corporation produces large custom-designed air handling systems for the institutional pharmaceutical and general industrial building markets.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ampco-Pittsburgh Corp has a Value Score of 73, which is considered to be undervalued.

Ampco-Pittsburgh Corp’s price-earnings ratio is 22.0 compared to the industry median at 11.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Ampco-Pittsburgh Corp less attractive for value investors.

Ampco-Pittsburgh Corp’s price-to-book ratio is higher than its peers. This could make Ampco-Pittsburgh Corp less attractive for value investors when compared to the industry median at 1.10.

You can read more about Ampco-Pittsburgh Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Nucor Corporation’s Value Grade

Value Grade:

Nucor Corporation is focused on manufacturing steel and steel products that produces direct reduced iron (DRI) for use in its steel mills. The Company?s segments include Steel Mills, Steel Products and Raw Materials. The Steel Mills segment produces sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar and engineered special bar quality (SBQ). The Steel Products segment produces steel joists and joist girders, steel deck, hollow structural section steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems and others. The Raw Materials segment DRI; brokers ferrous and nonferrous metals, pig iron, hot briquetted iron and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Nucor Corporation has a Value Score of 82, which is considered to be undervalued.

Nucor Corporation’s price-earnings ratio is 7.9 compared to the industry median at 11.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Nucor Corporation more attractive for value investors.

Nucor Corporation’s price-to-book ratio is lower than its peers. This could make Nucor Corporation more attractive for value investors when compared to the industry median at 1.10.

You can read more about Nucor Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Steel Partners Holdings LP’s Value Grade

Value Grade:

Steel Partners Holdings L.P. is a diversified global holding company. It owns and operates businesses and has interests in various companies, including diversified industrial products, energy, defense, supply chain management and logistics, banking and youth sports. Its segment includes Diversified Industrial, Energy, Financial Services and Supply Chain. The Diversified Industrial segment manufactures engineered niche industrial products, including joining materials, tubing, building materials, performance materials, electrical products, cutting replacement products and services, and the packaging business. The Energy segment provides drilling and production services to the oil and gas industry and owns a youth sports business. The Supply Chain segment provides supply chain management and logistics services. The Financial Services segment consists primarily of the operations of WebBank, a Utah chartered industrial bank, which engages in a full range of banking activities.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Steel Partners Holdings LP has a Value Score of 98, which is considered to be undervalued.

Steel Partners Holdings LP’s price-earnings ratio is 5.2 compared to the industry median at 11.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Steel Partners Holdings LP more attractive for value investors.

Steel Partners Holdings LP’s price-to-book ratio is higher than its peers. This could make Steel Partners Holdings LP less attractive for value investors when compared to the industry median at 1.10.

You can read more about Steel Partners Holdings LP’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

SunCoke Energy Inc’s Value Grade

Value Grade:

SunCoke Energy, Inc. is an independent producer of coke. The Company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. The Domestic Coke segment consists of cokemaking facilities and heat recovery operations at Jewell, Indiana Harbor, Haverhill, Granite City, and Middletown plants. Its Brazil segment consists of cokemaking operations located in Vitoria, Brazil, where it operates the ArcelorMittal Brazil cokemaking facility for a Brazilian subsidiary of ArcelorMittal S.A. The Logistics segment consists of Convent Marine Terminal (CMT), Kanawha River Terminal (KRT), Lake Terminal and Dismal River Terminal (DRT). CMT provides loading and unloading services located in Convent, Louisiana. The facility serves coal mining customers as well as other merchant business, including aggregates (crushed stone), petroleum coke and iron ore. KRT is a metallurgical and thermal coal mixing and handling terminal service provider that operates in Ceredo and Belle, West Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

SunCoke Energy Inc has a Value Score of 89, which is considered to be undervalued.

SunCoke Energy Inc’s price-earnings ratio is 13.7 compared to the industry median at 11.6. This means that it has a higher price relative to its earnings compared to its peers. This makes SunCoke Energy Inc less attractive for value investors.

SunCoke Energy Inc’s price-to-book ratio is lower than its peers. This could make SunCoke Energy Inc more attractive for value investors when compared to the industry median at 1.10.

You can read more about SunCoke Energy Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Metals & Mining - Iron & Steel Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Metals & Mining - Iron & Steel stocks as well as other industrys.

Choosing Which of the 5 Best Metals & Mining - Iron & Steel Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Ascent Industries Co stock has a Value Grade of A.
• Ampco-Pittsburgh Corp stock has a Value Grade of B.
• Nucor Corporation stock has a Value Grade of A.
• Steel Partners Holdings LP stock has a Value Grade of A.
• SunCoke Energy Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Metals & Mining - Iron & Steel industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Metals & Mining - Iron & Steel Stocks

Want to learn more about Metals & Mining - Iron & Steel stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Metals & Mining - Iron & Steel Stocks for Monday, November 20
• 5 Undervalued Metals & Mining - Iron & Steel Stocks for Friday, November 17
• Why Alpha Metallurgical Resources Inc’s (AMR) Stock Is Up 6.29%
• Why Warrior Met Coal Inc’s (HCC) Stock Is Up 5.57%

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