2023-03-05 23:11:22 ET
Summary
- USAP manufactures steel alloys, like stainless steel, for various industries.
- The company operates in a cyclical, low-profitability industry. It does not have a cost or any other competitive advantage.
- Further, the company has not invested countercyclically, demonstrating a lack of capital allocation ability.
- Taking both an average income approach and an optimistic growth-oriented approach, the company's stock is very overvalued.
For further details see:
Universal Stainless & Alloy Products: Overvalued On Unrealistic Growth Expectations