I did and analysis of the Bursa Steel sector, (refer to A tough 12 years for Bursa Malaysia steel companies ) and screened for companies based on 2 key metrics:

- performance: I used the past decade gross profitability

- valuation: I used the 2022 Graham Net Net

Based on the above 2 criteria, I found 8 companies. Lysaght was one of them. Of course if you are interested to invest in this sector, you can start by digging deeper into the one.

Is Lysaght a value trap?

Lysaght Galvaized Steel has been able to maintain its revenue and profits over the past 12 years. While not fantastic considering that global demand is projected to grow at around 4% CAGR, the company is profitable.

The company is also financially ok with about half of its total assets in cash form. There is also currently  > 30 % margin of safety from its Asset Value and Earnings Value. It is not in a sunset sector and there is no sign of digital disruption. As such I do not think Lysaght is value trap.