Stock Price & Analysis

Based on the analysis of SID stock, considering its recent performance, industry trends, and analyst sentiment, it is recommended to sell SID stock. The stock has shown marginal gains but faces significant challenges, including a negative earnings outlook and merger uncertainties. Additionally, analyst ratings suggest a bearish outlook.

{RATING:symbol=SID.N, type=0}

The price prediction for SID stock in 2025 is $1.60. This forecast is based on Fibonacci resistance levels and analyst downgrade.

The S1 support level for SID Stock is $1.7 ,The R1 resistant level for SID Stock is $1.81.

As of the end of day on 2025-03-28, the price of SID Stock was $1.71.

The market cap of SID is $4.5B.

Analysis and Insights

Valuation Metrics:

SID's valuation metrics suggest potential overvaluation. The stock has a high EV/EBITDA ratio of 12.7, indicating a premium relative to earnings. The price-to-book (P/B) ratio of 1.29 is slightly above average, signaling moderate overvaluation. Additionally, the price-to-sales (PS) ratio of 0.37 is low, but this must be compared to industry peers for context.

Analyst Sentiment:

Analysts have a bearish outlook on SID. UBS initiated coverage with a Strong Sell rating and a $1.30 price target, implying significant downside potential. This negative sentiment reflects concerns about the company's fundamentals and industry headwinds.

{RATING:symbol=SID.N, type=0}

Industry and Economic Factors:

The steel sector faces challenges due to China's economic slowdown, particularly in the property sector, which has reduced metal demand. This macroeconomic trend could negatively impact SID's revenue and profitability.

Dividend Yield:

SID offers a high dividend yield of 12.7%, which may attract income-focused investors. However, such a high yield could indicate market expectations of poor future performance or dividend sustainability risks.

Conclusion:

SID appears overvalued based on its high EV/EBITDA ratio, negative P/E, and analyst Sell ratings. While the high dividend yield is attractive, it may not offset the significant downside risks. Investors should exercise caution and consider SID's valuation and industry challenges before making investment decisions.

Companhia Siderurgica Nacional is a Brazil-based company engaged in the steel industry. The Company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates in five segments: Steel, Mining, Cement, Logistics and Energy. The Steel segment focuses on the production, distribution and sale of flat steel, long steel, metallic containers, and galvanized steel, with operations in Brazil, the United States, Portugal, and Germany. The Mining segment encompasses the activities of iron ore and tin mining. The Cement segment is responsible for the cement production, distribution, and sale operations. The logistics segment manages port terminal for containers, as well as railway networks. The Energy segment includes generation of electric power. The Company is controlled by Vicunha Acos SA.

SID stock is predicted to reach $2.40 by 2030, driven by strong semiconductor sector growth and potential synergies from mergers. However, it may face headwinds from union concerns over production commitments, potentially limiting upside. A conservative estimate suggests SID could trade between $1.60 and $2.40 by 2030.

SID has a total of 29563 employees.