Companhia Siderurgica Nacional S.A. Common Stock (SID)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $1.24 on 2026-10-13, SID trades below book value—FairStock’s P/B is 0.69—which is the kind of signal Graham liked. But price-to-book alone is not a margin of safety when the business is burning cash. CSN is an integrated Brazilian steel producer with mining, logistics, energy, and cement operations. That scale and integration can help in good times, but steel is a commodity business; the company is largely a price taker and lacks a durable moat. In the second quarter of 2026 (2026-Q2), the latest reported quarter, revenue was $11.3 billion, yet net income was negative $794.1 million, a -7.02% net margin. Trailing free cash flow was negative $6.2 billion, and FairStock’s FCF yield is -358.8%, which is alarming. FairStock’s debt/equity is 3.57, Altman Z is 0.18, ROE is -12.29%, and ROCE is only 2.17%. Those are not the marks of a fortress balance sheet. The 14.52% dividend yield at that close looks unsustainable against negative cash flow, and FairStock’s P/E is negative 3.26 because there are no positive earnings to value. FairStock’s EV/EBITDA of 7.09 is not enough to offset leverage and cyclicality. Piotroski F-Score of 6/9 and revenue growth of 5.73% offer some hope, but profit growth of -378.39%, a FairStock Score of 34/100, and no Lynch category due to insufficient filed annual results keep me cautious. At 0.69 book, Mr. Market may be pricing distress, not a bargain. Until cash flow turns positive and debt falls, I would call this a speculative cyclical, not a safe value investment.

In plain English: CSN is a Brazilian steel company that also mines iron ore and runs logistics, energy, and cement businesses. Right now the business looks weak: it lost money in its latest quarter and is burning cash while carrying a lot of debt. The share price looks cheap compared with the company's assets, but the weak profits and cash drain make it a risky, not obviously safe, value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer