Companhia Siderúrgica Nacional (SID) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Companhia Siderúrgica Nacional (SID) Materials & Commodity Exposure

Companhia Siderúrgica Nacional (SID) stands as a prominent integrated steel manufacturer in Brazil and Latin America, offering a diverse range of steel products and services across multiple sectors, thereby solidifying its competitive position in the basic materials industry.

What Is the Investment Thesis for SID?

Companhia Siderúrgica Nacional (SID) presents a multifaceted investment thesis driven by its diversified operations across steel, mining, logistics, energy, and cement. The company's gross margin stands at 27.4%, indicating a solid operational efficiency compared to industry peers. Despite a profit margin of -3.9%, CSN's strategic focus on enhancing its steel production capabilities and expanding its mining operations positions it for recovery and growth. The ongoing demand for steel in construction and automotive sectors, coupled with the company's robust logistics network, provides a competitive edge. Additionally, CSN's commitment to sustainability and energy generation through renewable sources could enhance its long-term value proposition. Investors should monitor the company's ability to navigate market fluctuations and improve profitability metrics over the next few years.

Based on FMP financials and quantitative analysis

SID Key Highlights

Market Cap of $1.83B, reflecting its substantial presence in the steel industry.

• Gross margin of 27.4%, indicating effective cost management and operational efficiency.
• Employee base of 24,924, showcasing the company's scale and operational capacity.
• No dividend yield, suggesting a focus on reinvestment for growth rather than shareholder returns.
• Beta of 1.30, indicating higher volatility compared to the broader market.

Who Are SID's Competitors?

SID is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are SID's Key Strengths?

Diverse product portfolio across multiple segments, reducing market risk.

• Established logistics infrastructure enhancing operational efficiency.
• Strong market presence in Brazil and Latin America with export capabilities.

What Are SID's Weaknesses?

Negative profit margin indicating current operational challenges.

• Dependence on cyclical industries, making it vulnerable to economic fluctuations.
• Limited dividend payments may deter income-focused investors.

What Could Drive SID Stock Higher?

Expansion of steel production capacity to meet rising demand in construction and automotive sectors.

• CSN's commitment to sustainability through renewable energy initiatives, enhancing its market positioning.
• Potential increase in mining output to capitalize on rising iron ore prices.
• Development of logistics infrastructure to improve operational efficiency and reduce costs.
• Strategic partnerships to enhance product offerings and market reach.

What Are the Key Risks for SID?

Financial-distress signal — its Altman Z-Score of 0.58 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-18.6%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Fluctuating raw material prices impacting the cost structure and profitability.
• Intense competition from local and international steel producers affecting market share.
• Regulatory changes and environmental policies that may increase operational costs.
• Economic fluctuations impacting demand in cyclical industries served by CSN.

What Are the Growth Opportunities for SID?

• Expansion of Steel Production: CSN aims to increase its steel production capacity to meet the rising demand in the construction and automotive sectors. The global steel market is expected to grow at a CAGR of 3.2% from 2023 to 2028, providing a significant opportunity for CSN to capture market share and enhance revenue streams.
• Mining Segment Growth: With the increasing demand for iron ore, CSN's mining operations at Casa de Pedra and Engenho mines present a substantial growth opportunity. The iron ore market is projected to grow at a CAGR of 4.1% through 2027, allowing CSN to leverage its existing resources for increased profitability.
• Logistics Infrastructure Development: CSN's management of its own railway and port infrastructure provides a competitive advantage in logistics efficiency. The logistics market in Brazil is expected to expand, driven by e-commerce and industrial growth, positioning CSN to enhance its service offerings and reduce operational costs.
• Energy Generation Initiatives: CSN's focus on renewable energy through hydroelectric and thermoelectric plants aligns with global sustainability trends. The renewable energy market is projected to grow significantly, allowing CSN to diversify its energy portfolio and reduce operational costs while contributing to environmental sustainability.
• Cement Production Expansion: The growing construction sector in Brazil offers CSN an opportunity to expand its cement production. The cement market is projected to grow at a CAGR of 5.5% from 2023 to 2028, driven by infrastructure projects and urbanization, positioning CSN to capitalize on increased demand.

What Are SID's Competitive Advantages?

• Integrated operations across steel, mining, logistics, energy, and cement provide a competitive edge.
• Established logistics infrastructure reduces transportation costs and enhances supply chain efficiency.
• Diverse product range caters to multiple industries, reducing dependency on a single market.
• Strong brand recognition in Brazil and Latin America bolsters customer loyalty.
• Commitment to sustainability and innovation aligns with industry trends and customer preferences.

What Does SID Do?

Founded in 1941, Companhia Siderúrgica Nacional (CSN) has grown to become one of the largest integrated steel manufacturers in Brazil and Latin America. Headquartered in São Paulo, Brazil, CSN operates through five key divisions: Steel, Mining, Logistics, Energy, and Cement. The company produces a wide array of steel products, including specialized slabs, hot-rolled and cold-rolled coils, galvanized products, and structural steel shapes. These products cater to various industries such as automotive, construction, packaging, and home appliances. In addition to its steel operations, CSN has a significant mining segment, extracting iron ore and limestone from its mines in Minas Gerais state. The company also manages its own logistics infrastructure, including railways and ports, to facilitate efficient transportation of its products. CSN's energy division generates electricity through thermoelectric co-generation and hydroelectric plants, further diversifying its revenue streams. With a commitment to sustainability and innovation, CSN has positioned itself as a key player in the steel industry, exporting its products to international markets and adapting to evolving customer demands.

What Products and Services Does SID Offer?

• Manufacture a diverse range of steel products, including flat steel, structural shapes, and specialized slabs.
• Extract iron ore and other minerals from its mining operations in Brazil.
• Provide logistics services through its own railway and port infrastructure.
• Generate electricity from thermoelectric co-generation and hydroelectric plants.
• Produce and sell cement to various construction-related industries.
• Export steel and cement products to international markets.

How Does SID Make Money?

• Generate revenue through the sale of steel products across various sectors, including automotive and construction.
• Extract and sell minerals, particularly iron ore, contributing to the overall profitability.
• Leverage logistics infrastructure to optimize supply chain efficiency and reduce costs.
• Produce and sell energy, enhancing revenue diversification.
• Engage in cement production to capture market share in the growing construction sector.

What Industry Does SID Operate In?

The steel industry is experiencing a dynamic landscape characterized by fluctuating demand and evolving technological advancements. With a global market size projected to reach over $1 trillion by 2027, driven by infrastructure development and automotive production, companies like Companhia Siderúrgica Nacional (SID) are well-positioned to capitalize on these trends. CSN faces competition from key players such as Elevra Lithium Limited (ELVR), Grupo Simec, S.A.B. de C.V. (SIM), and Constellium SE (CSTM), each vying for market share in the growing steel sector. The increasing emphasis on sustainable practices and innovations in steel production further shapes the competitive landscape, requiring companies to adapt and invest in new technologies.

Who Are SID's Key Customers?

• Automotive manufacturers requiring high-quality steel for vehicle production.
• Construction companies seeking reliable sources of steel and cement.
• Packaging companies utilizing steel for various packaging solutions.
• Home appliance manufacturers needing durable steel products.
• Concrete producers and construction material stores purchasing cement.

Company Profile

Companhia Siderúrgica Nacional operates in the Steel industry within the Basic Materials sector. It is headquartered in São Paulo, BR. The company is led by CEO Benjamin Steinbruch. SID has traded publicly since 1996.

Return on equity for Companhia Siderúrgica Nacional stands at -18.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.4%, showing how much profit it generates from its asset base. Its free cash flow yield is -66.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.15 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -25.6%, the inverse of the P/E and a quick read on earnings relative to price.

SID Valuation & Market Position

With a $1.83B market cap, Companhia Siderúrgica Nacional sits in the small-cap segment of the market. Analyst price targets span from $1.40 to $1.40, with a consensus of $1.40. At the current price of $1.38, that implies approximately 1% upside potential. Relative to its peer group, SID's quantitative score of 23/100 is below the peer average of 54/100.

Quarterly Financial Performance: Companhia Siderúrgica Nacional

Revenue for Companhia Siderúrgica Nacional came in at $2.22B during Q2 FY2026, a 8.7% improvement versus the preceding quarter. The company recorded a net loss of $155.8M, with diluted EPS of $-0.12. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Basic Materials. Across the four most recent quarters, SID averaged $-0.10 in diluted EPS.

Companhia Siderúrgica Nacional's Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 0.58 places it in the distress zone, a signal of elevated financial risk.

Companhia Siderúrgica Nacional has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 249.1% below estimates on average.

SID Financials

SID Latest News

SID Analyst Consensus

SID MoonshotScore

Common Questions About SID (Basic Materials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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