(SID) Companhia Siderurgica - Ratings and Ratios

Companhia Siderúrgica Nacional (CSN) is a leading integrated steel producer in Brazil and Latin America, operating across five core segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company specializes in the production of flat steel products, including hot- and cold-rolled, galvanized, galvalume, pre-painted, and metal sheets, as well as coil, sheets, and derivatives. It also manufactures long steel products, tiles, pipes, profiles, and steel packaging solutions for the food and chemical industries. Additionally, CSN offers steel cutting services, produces and sells cement, and operates railway and port facilities. The company generates electric power through its thermoelectric co-generation and hydroelectric plants, further diversifying its operations. Mining activities include the exploration of iron ore reserves at the Casa de Pedra and Engenho mines in Congonhas, limestone and dolomite at the Bocaina mine in Arcos, Minas Gerais, and tin production. Founded in 1941, CSN is headquartered in São Paulo, Brazil, and is a key player in the regions steel and industrial sectors.

CSNs integrated business model allows it to leverage synergies across its operations, from raw material extraction to finished steel products. Its logistics network, including railways and ports, enhances efficiency and cost competitiveness in serving domestic and international markets. The companys energy division supports its industrial operations with renewable and thermal power generation, reducing dependence on external energy sources. While CSN has faced challenges, including fluctuating commodity prices and economic conditions in Brazil, its diversified portfolio and strategic investments position it as a resilient player in the steel and industrial materials industry. For more information, visit its website at https://www.csn.com.br.

3-Month Forecast (Based on Technical and Fundamental Data): - Technical Outlook: SID is currently trading below its 20- and 50-day moving averages ($1.54 and $1.58, respectively), with the 200-day moving average at $1.80. The stock is in a downtrend, with the Relative Strength Index (RSI) near 30, indicating oversold conditions. Average True Range (ATR) of 0.08 suggests limited volatility in the near term. - Fundamental Outlook: With a forward P/E of 47.17 and a price-to-book ratio of 0.97, SID appears undervalued relative to its book value but faces challenges with a negative return on equity (RoE) of -16.66%. The low P/S ratio of 0.05 reflects its discounted valuation relative to sales. - Forecast: Over the next three months, SID is likely to experience sideways to downward momentum due to its technical downtrend and negative fundamentals. However, oversold conditions and low volatility may limit further declines. Investors should monitor the companys ability to improve profitability and reduce leverage.