ATI to CRS: 5 Titanium stocks to watch amid Russia-Ukraine war

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ATI to CRS: 5 Titanium stocks to watch amid Russia-Ukraine war

 ATI to CRS: 5 Titanium stocks to watch amid Russia-Ukraine war
Image source: © Mnyjhee | Megapixl.com

Highlights:

  • Kronos Worldwide (NYSE: KRO) has an annualized dividend of US$0.76.
  • Valhi, Inc’s (NYSE: VHI) dividend yield is 0.74%, and its annual dividend is US$0.32. 
  • Carpenter Technology (NYSE: CRS) has an annualized dividend of US$0.80.

Titanium, heavy metal with excellent heat and corrosion resistance, is critical for manufacturing aircraft parts, such as landing gear, fasteners, and pylons, which connect the engine to a wing.

According to the US Geological Survey, 13% of the world’s titanium sponge, the raw material, is produced in Russia. Other major countries that mine titanium are Japan and China. However, the metal is not yet on the list of Western sanctions against Russia.

In late April, EU trade commissioner Valdis Dombrovskis said that the EU bloc was looking for new suppliers. Airbus, one of the world’s largest commercial plane makers, recently said it was looking for new sources in the US and Asia. The company is looking for new sources due to the ongoing geopolitical tensions.

Here we discuss five titanium stocks that gave positive returns YTD. 

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Allegheny Technologies Incorporated (NYSE: ATI)

Allegheny Technologies Inc supplies specialty metals to various industries, including aerospace, defense, automotive, oil and gas, energy, etc. It is based in Pittsburgh, Pennsylvania.

For the quarter ended March 31, 2022, the company generated sales of US$834.1 million compared to US$692.5 million a year ago.

It booked a net income of US$35.2 million or US$0.23 per diluted share against a net loss of US$2.4 million or US$0.06 per diluted share in the same quarter of 2021. 

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The company repurchased 3.5 million of its shares for US$90 million, or US$25.57 per share. It had US$316.7 million in cash reserve as of March 31, 2022.

It has a market capitalization of US$2.84 billion. Its forward P/E for one year is 15.57. The stock traded between US$30.74 and US$13.85 in one year and closed at US$22.89 on June 21, 2022. 

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ATI to CRS: 5 Titanium stocks to watch amid Russia-Ukraine war

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Kronos Worldwide Inc (NYSE: KRO)

Dallas, Texas-based Kronos Worldwide is a chemical company. It manufactures titanium dioxide, a white inorganic pigment used for coatings on aircraft, automobiles, machines, appliances, traffic paint etc.

The company reported net sales of US$562.9 million in the March quarter of 2022, compared to US$465 million in the previous year. 

Its net income was US$57.5 million or US$.50 per diluted share in Q1, 2022, compared to US$19.6 million or US$.17 per diluted share in the same quarter of 2021. The increase in net income was primarily due to higher income from operations and higher sales volumes.

The stock has a market capitalization of US$2.14 billion. Its P/E ratio is 14.15, and the forward P/E for one year is 9.0. The stock has a dividend yield of 4.23%, with an annualized dividend of US$0.76. It traded in the range of US$19.78 to US$12.06 in one year and closed at US$18.54 on June 21, 2022. 

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Valhi, Inc. (NYSE: VHI)

Valhi Inc provides chemicals, security products, and waste management systems through its subsidiaries. It is a holding company based in Dallas, Texas. 

For the quarter ended March 31, 2022, it generated revenue of US$629 million compared to US$509 million in the prior year’s quarter.

It posted a net income attributable to Valhi stockholders of US$45.4 million or US$1.59 per diluted share, compared to US$14.8 million or US$.52 per share in Q1, 2021.

The stock has a market capitalization of US$1.24 billion and a P/E ratio of 7.96. 

The stock has a dividend yield of 0.74% with an annualized dividend of US$0.32. It traded in the range of US$54.06 to US$21.11 in one year and closed at US$44.02 on June 21, 2022. 

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Reliance Steel & Aluminum Co. (NYSE: RS)

Los Angles, California-based Reliance Steel & Aluminum provides metal processing and inventory management services. Its products include alloy, aluminum, titanium, brass, copper, carbon steel, stainless steel, and specialty steel products.

Its net sales for the quarter ended March 31, 2022, were US$4.49 billion compared to US$2.84 billion in the previous year.

The company's net income came in at US$523.3 million or US$8.33 per diluted share compared to US$266.9 million or US$4.12 per diluted share in the March quarter of 2021. 

The stock has a market capitalization of US$10.6 billion. Its P/E ratio is 6.51, and the forward P/E for one year is 6.11. 

The stock has a dividend yield of 2.06%, with an annualized dividend of US$3.50. The stock traded in the range of US$211.66 to US$135.46 in one year and closed at US$170.45 on June 21. 

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ATI to CRS: 5 Titanium stocks to watch amid Russia-Ukraine war© Bwylezich | Megapixl.com

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Carpenter Technology Corporation (NYSE: CRS)

Philadelphia, Pennsylvania-based Carpenter Technology supplies specialty metals to the end markets, including aerospace, defense, industrial machinery, medical, energy, and consumer durables. It generates most of its revenue from titanium, premium alloys, and stainless steel. 

For the quarter ended March 31, 2022, its net sales were S$489 million compared to US$351.9 million in the previous year.

It booked a net loss of US$7.5 million or US$0.16 per diluted share compared to a net loss of US$40.5 million or US$0.84 per diluted share in the March quarter of 2021. 

The stock has a market capitalization of US$1.46 billion. The CRS stock has a dividend yield of 2.7%, with an annualized dividend of US$0.80. It traded in the range of US$44.96 to US$26.84 in the last 52 weeks and closed at US$30.3 on June 21, 2022. 

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Bottom line:

Although the titanium market is small compared to other metallurgical goods, it holds an important place. However, investors should carefully evaluate the companies before investing in the stock market.

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