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X – Market expectations are for Uniform ROA to remain muted, but management is confident about their ESG initiatives, relationships, and demand

April 6, 2021

  • United States Steel Corporation (X:USA) is currently trading at a discount relative to UAFRS-based (Uniform) assets, with a 0.5x Uniform P/B. At these levels, the market is pricing in expectations for profitability to remain muted, but management is confident about their ESG initiatives, customer relationships, and steel demand
  • Specifically, management is confident they are entering a very strong steel market environment in 2021 and are focused on achieving their 2030 greenhouse gas emission intensity reduction target. In addition, they are confident there is no imminent need for additional Electric Arc Furnaces (EAFs), that they are working more closely with customers, and that steel demand will continue to accelerate and remain sustainable in the longer-term