- TimkenSteel is a fairly small steel company with a market capitalization of only $700 million.
- TimkenSteel outperforms its same-size peers in both EBITDA margin and FCF per debt, making it a) more profitable and b) more financially stable than others.
- TMST appears to be relatively undervalued even if we compare it with the biggest companies in the steel industry.
- Steelmakers seem to soar much longer than analysts expected recently - it makes TMST one of the most reliable companies in the entire steel industry in terms of short-squeeze potential.
- Based on technicals, I believe it is better to buy TMST on the approaching breakout of the $17.30-17.40 per share resistance level.
For further details see:
TimkenSteel Has Some Short Squeeze Potential