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Usiminas
(OTC:USNZY)
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Rating:54Neutral
Price Target:
$1.50
▲(8.70% Upside)
Action:Reiterated
Date:10/12/26
The score is held back primarily by weak financial performance (TTM losses and high cyclicality), with only partial support from positive recent cash flow and moderate leverage. Technicals are moderately positive with improving momentum, while valuation is penalized by a negative P/E that reflects current losses. The earnings call adds some support due to margin/EBITDA recovery and project-driven efficiency gains, but guidance still flags cost pressures and market/import headwinds.
Positive Factors
Integrated steel value chain
Usiminas operates across steelmaking, raw materials, logistics and distribution, allowing it to coordinate more of the value chain around flat-steel delivery. This breadth can support reliability and commercial reach across automotive, capital goods and construction customers.
Negative Factors
Deep losses and earnings cyclicality
Current operating and net losses show that the business is not yet converting its substantial asset base into earnings. The sharp swing from strong 2021–2022 margins to later losses also highlights cyclicality, making profitability and capital returns less dependable through the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated steel value chain
Usiminas operates across steelmaking, raw materials, logistics and distribution, allowing it to coordinate more of the value chain around flat-steel delivery. This breadth can support reliability and commercial reach across automotive, capital goods and construction customers.
Read all positive factors
Usiminas (USNZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.76B
Dividend Yield3.63%
Average Volume (3M)4.84K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth0.12%
EPS Growth-725.60%
CountryUS
Employees15,233
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-1.93
Shares Outstanding547,752,000
10 Day Avg. Volume6,918
30 Day Avg. Volume4,840
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.34
Price to Sales (P/S)0.27
P/FCF Ratio5.65
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit1.03
Enterprise Value/Ebitda3.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.28
Revenue Forecast (FY)$4.84B
Usiminas Business Overview & Revenue Model
Company Description
Usinas Siderúrgicas de Minas Gerais S.A. operates in the steel industry and related activities in Brazil and internationally. It operates in two segments, Steel Metallurgy and Mining, and Logistics. The company offers thick plates, hot strips, col...
How the Company Makes Money
Usiminas makes money primarily by producing and selling steel products, especially flat steel, to industrial customers in Brazil. Revenue is generated mainly from (1) sales of finished steel (e.g., coils, sheets, and other flat products) under com...
Usiminas Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call was cautiously positive. Usiminas reported stronger EBITDA, revenue, steel margins, cash generation and net cash, while highlighting successful completion of the PCI project, disciplined capital allocation and progress on strategic projects. These positives were partly offset by a 52% decline in net income, mining-margin pressure from 35% higher maritime freight, higher expected raw-material costs, weak industrial demand, historically high imports and ongoing global and domestic steel-market challenges.Positive Updates
EBITDA Recovery and Margin Improvement
Consolidated EBITDA reached BRL 761 million with a 12% margin, representing a recovery from previous periods. Steel EBITDA increased 26% quarter-on-quarter, and the steel margin reached 13%, 2.4 percentage points above the previous period.
Negative Updates
Mining Revenue and EBITDA Decline
Mining net revenue dropped 11% despite the 27% increase in sales volume. Mining results were affected by maritime freight costs that were 35% higher and by the appreciation of the Brazilian real against the dollar, which also reduced adjusted EBITDA.
Read all updates
Q2-2026 Updates
Positive
Negative
EBITDA Recovery and Margin Improvement
Consolidated EBITDA reached BRL 761 million with a 12% margin, representing a recovery from previous periods. Steel EBITDA increased 26% quarter-on-quarter, and the steel margin reached 13%, 2.4 percentage points above the previous period.
Read all positive updates
Company Guidance
For the next quarter, Usiminas expects steel unit operation activities to “remain stable,” excluding the “extraordinary effect of the last periods,” with an increase of steel, a similar product mix, higher prices in the industrial segment, higher costs especially for coal, coke and plates, and “higher volume” expected to offset costs per ton; it expects a “slight drop of yield,” an additional 15% PCI injection rate versus the previous quarter and 30% additional injection rate in the third quarter versus the first quarter, with the “full contribution” and “full benefits” of the PCI project in the third quarter. The 2026 CapEx guidance was changed from BRL 1.4 billion to BRL 1.2 billion to BRL 1.4 billion; there is no guidance for 2027 or the fourth quarter, while the gasometer is expected to be completed in the middle of next year, the second coke battery within 3 years, and the Compactos Project may have updates until the end of 2026, with deeper analysis likely at the end of this year or beginning of next year. Mining volume is expected to be lower, with no magnitude provided, while inventories may create better opportunities at the end of the third quarter and the beginning of fourth quarter, and the hot-rolled antidumping process is likely to be completed at the end of August, beginning of September, with a margin of more than 35%.Usiminas Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.88B | 25.84B | 25.87B | 27.64B | 32.47B | 33.74B |
| Gross Profit | 2.38B | 2.12B | 1.66B | 1.79B | 5.68B | 11.27B |
| EBITDA | 652.95M | 1.83B | 1.81B | 2.92B | 4.77B | 13.57B |
| Net Income | -2.32B | -3.02B | -145.95M | 1.39B | 1.62B | 9.07B |
Balance Sheet | ||||||
| Total Assets | 35.11B | 36.81B | 39.87B | 40.16B | 40.00B | 39.48B |
| Cash, Cash Equivalents and Short-Term Investments | 6.85B | 6.94B | 5.95B | 6.01B | 5.07B | 7.02B |
| Total Debt | 6.46B | 7.06B | 7.76B | 7.60B | 6.32B | 6.38B |
| Total Liabilities | 11.46B | 13.12B | 13.19B | 13.61B | 14.11B | 15.12B |
| Stockholders Equity | 20.75B | 20.80B | 23.88B | 23.86B | 23.16B | 21.75B |
Cash Flow | ||||||
| Free Cash Flow | 1.68B | 1.25B | -6.00M | 1.58B | -1.09B | 3.81B |
| Operating Cash Flow | 2.86B | 2.28B | 989.16M | 4.57B | 997.12M | 5.30B |
| Investing Cash Flow | -1.93B | -2.12B | -900.93M | -2.00B | -3.34B | -325.73M |
| Financing Cash Flow | -1.44B | -65.22M | -423.37M | -775.79M | -1.09B | -1.88B |
Usiminas Technical Analysis
Positive
1.38
Price Trends
1.38
Positive
1.61
Negative
1.48
Negative
Market Momentum
0.01
Negative
55.62
Neutral
77.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USNZY, the sentiment is Positive. The current price of 1.38 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.38, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 77.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USNZY.
Usiminas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $11.42B | 16.07 | 5.77% | 3.78% | -0.65% | 18.90% | |
64 Neutral | $47.77B | 26.85 | 3.31% | 1.13% | 3.25% | -27.63% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $9.49B | 30.87 | 2.53% | 2.94% | 8.98% | -21.39% | |
56 Neutral | $7.41B | -7.77 | -15.23% | 6.42% | 4.14% | 52.63% | |
54 Neutral | $1.76B | -2.90 | -13.68% | 3.63% | 0.12% | -725.60% | |
46 Neutral | $1.75B | -3.65 | -18.55% | 12.27% | 9.29% | -26.44% |
* Basic Materials Sector Average
USNZY
Usiminas
1.46
0.64
77.67%
MT
ArcelorMittal
62.95
25.04
66.05%
CLF
Cleveland-Cliffs
12.89
-0.94
-6.80%
GGB
Gerdau SA
5.14
2.00
63.90%
SID
Companhia Siderúrgica Nacional
1.27
-0.27
-17.53%
TX
Ternium SA
57.94
23.46
68.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.