Let’s get to the point very quickly this week. Last week I put a step aside and presented Kobe Steel. Two weeks ago I provided some links to sites talking about specific companies. One of those links was https://investorplace.com/2016/12/the-7-worst-stocks-to-buy-for-2017/ I realised two of the seven companies discussed there were steel-companies, just like Kobe-steel. So a good chance to move to the promised set and create graphs for two companies, allowing us to compare three as they are all about steel. The Annual Reports (2016) I found at:
http://ir.aksteel.com/getattachment/3f28dd55-5556-4125-b2fa-600782ff34c6/2016-Annual-Report and https://www.ussteel.com/sites/default/files/annual_reports/USS%20Form%2010-K%20-%202016.pdf
For US-Steel the values I took I used their own overview at page 59: Revenue: $ 10261 MM Loss $ – 440 MM Equity $ 2274 MM Assets $ 9160 MM
For AK-Steel I had to sum numbers as their presentation is a little bit different from US-Steel, so I added their non-operational income to the operational part (please check because – as stated before – I’m merely demonstrating the power of AnRep3D, not analysing companies. I am certainly not providing advice, except that in my opinion it would be good to purchase an AnRep3D full license): Revenue $ 6010 MM Profit $ 115.9 MM Equity $ 90.7 Assets $ 4036 MM
Putting the numbers into two different input-files (remember, the free demo-generator will only process one company a time) and feeding them to the generator we get two 3D graphs. The first graph for AK-Steel looked tiny because I took the same scaling as used for Kobe and US-Steel. With the second attempt the scaling (“shrink factor” reducing the large amounts) was set to 250 instead of 500 keeping the numbers twice as high this time. The two input-files looked like this:
The two graphs with Kobe-Steel next to them provide a nice series!
Clicking on the image will start the real 3D graph in your default browser (both Javascript and WebGL should be enabled – if you donn’t trust the connection, download the .htm file first, using right-click. Have a look at the file and start it locally by double clicking it in Windows Explorer). The 3D-graph can be manipulated in real-time: clicking left and moving the mouse will tilt the graph in different directions. Double clicking in the graph translates it and moves the centre at the same time. Just try it. If you don’t know how to get the normal position back, just refresh the browser window.
It is clear that US-Steel (USA) and Kobe-Steel (Japan) are rather similar, although US-steel shows a larger (relative) loss and low equity compared to the total assets (so the gearing is high) AK_Steel (USA) however, looks very different in two ways: its equity is very low compared to the total assets (high gearing – this is why the graph looks like a sheet of steel) and it shows a profit instead of a loss. No conclusions, just visualisation!
I hope this is another valid demonstration of the power of AnRep3D. And this is only about the free demo-generator, not the full version coming with a license. This version is able to compare a series of companies over a range of years. Of coure a picture will say more than a thousand words, so I provide you wit a screenshot (no 3D graph available this time) of such a complex graph. Visit https://AnRep3D.com for more information.
