Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Electro Aço Altona S.A. functions as a leading casting and machining enterprise in Brazil, specializing in the fabrication and provision of a diverse range of metal components. Its product line features parts meticulously crafted from low, medium, and high carbon steel, as well as various specialized alloys. The company's comprehensive offerings include bespoke alloyed irons for unique applications, components supplied either in their raw form or precision-machined, and crucial add-ons for equipment. Furthermore, Electro Aço Altona engineers steels and alloys known for their superior resistance to abrasion, extreme temperatures, and corrosive conditions, alongside other proprietary special and super alloys. This Brazilian firm serves a broad spectrum of heavy industries, including automotive manufacturing, heavy transportation, power generation, mining, dredging, and the expansive oil and gas sector, both onshore and offshore. Demonstrating a significant international presence, the company exports its products to roughly 25 countries globally. Established in 1924, the business initially operated under the name Auerbach & Werner before adopting its current designation, Electro Aço Altona S.A., in 1933. Its main administrative office is situated in Blumenau, Brazil.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITD.