Ampco-Pittsburgh (AP) AI Stock Analysis

• Market Cap: $61.49M
• Dividend Yield: N/A
• Average Volume (3M): 90.73K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.33
• Revenue Growth: -3.60%
• EPS Growth: N/A
• Country: US
• Employees: 1,634
• Sector: Industrials
• Sector Strength: 83
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.06
• Shares Outstanding: 20,094,618
• 10 Day Avg. Volume: 87,199
• 30 Day Avg. Volume: 90,729
• PEG Ratio: -0.11
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.10
• Enterprise Value/Market Cap: 2.42
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: 2.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $4.00 ▲(30.72%Upside)

Ampco-Pittsburgh scores a 70.6, driven by a balanced view of its financial performance, technical indicators, and recent earnings call. While the company shows potential with improved profitability and strong order intake, concerns over revenue contraction, high leverage, and cash flow issues warrant a cautious outlook. The stock's technical momentum is strong, but valuation remains moderate, reflecting the mixed financial dynamics.

Ampco-Pittsburgh Business Overview & Revenue Model

Company Description

Ampco-Pittsburgh Corporation, together with its subsidiaries, engages in manufacture and sale of specialty metal products and customized equipment to commercial and industrial users worldwide. It operates in two segments, Forged and Cast Engineered Products (FCEG); and Air and Liquid Processing. The FCEG segment produces forged hardened steel rolls that are used in cold rolling mills by producers of steel, aluminum, and other metals; cast rolls for hot and cold strip, medium/heavy section, hot strip finishing, roughing, and plate mills in various iron and steel qualities; and forged engineered products for use in the steel distribution, oil and gas, and aluminum and plastic extrusion industries. This segment also offers forged rolls for cluster and Z-Hi mills; work rolls for narrow and wide strip and aluminum mills; back-up rolls for narrow strip mills; leveling rolls and shafts; and distributes tool steels, alloys, and carbon round bars. The Air and Liquid Processing segment produces custom-engineered finned tube heat exchange coils and related heat transfer products for various industries, including OEM/commercial, nuclear power generation, and industrial manufacturing; and custom-designed air handling systems for institutional, pharmaceutical, and general industrial building markets. This segment also provides centrifugal pumps the fossil-fueled power generation, marine defense, and industrial refrigeration industries. The company was incorporated in 1929 and is headquartered in Carnegie, Pennsylvania.

How the Company Makes Money

Ampco-Pittsburgh Corporation generates revenue through the manufacture and sale of its engineered products and materials. The Forged and Cast Engineered Products segment contributes significantly to the company's income by supplying essential components to the steel and aluminum industries, where their products are critical for hot and cold rolling processes. The Air and Liquid Processing segment adds to the revenue through sales of air handling and filtration systems, primarily serving the HVAC market, and centrifugal pumps used in various industries. The company's earnings are bolstered by strategic partnerships and long-term contracts with key industry players, ensuring a steady demand for its specialized products.

Ampco-Pittsburgh Financial Statement Overview

Summary

Ampco-Pittsburgh's financial statements reveal a mixed performance with steady profitability and cash generation capabilities, countered by challenges in revenue growth and high leverage. The income statement shows improved margins, but declining revenue is concerning. The balance sheet reflects high leverage, although ROE improvements suggest better returns to shareholders. Cash flow analysis highlights strong operating cash flows but negative free cash flow, indicating liquidity management issues.

Income Statement

The company's gross profit margin for TTM stands at 18.63%, indicating a reasonable ability to cover costs. The net profit margin improved to 1.04% from a prior year's 0.10%, showing enhanced profitability, albeit remaining low. Revenue decreased by 1.42% in the TTM compared to the previous year, suggesting a slight contraction. The EBIT and EBITDA margins are 3.87% and 9.43% respectively, reflecting stable operational efficiency. Overall, the income statement indicates modest profitability and stable margins, but revenue contraction is a concern.

Balance Sheet

The company's debt-to-equity ratio is 2.05, indicating high leverage, which could pose a risk in volatile market conditions. Return on equity (ROE) improved to 6.65% in the TTM, showing better returns to equity holders compared to negative returns in previous years. The equity ratio is 12.06%, suggesting a limited equity buffer to absorb potential shocks. While improvements in ROE are positive, high leverage remains a critical concern for financial stability.

Cash Flow

The operating cash flow to net income ratio is 1.91, demonstrating strong cash generation relative to net income. However, free cash flow has turned negative in the TTM, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is -0.78, highlighting the inability to convert earnings into free cash flow. While operating cash flows are robust, the negative free cash flow trajectory indicates potential liquidity pressures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
412.36M	418.31M	422.34M	390.19M	344.92M	328.54M
	Gross Profit
76.83M	81.50M	74.56M	62.19M	57.28M	71.03M
	EBIT
15.94M	12.17M	-34.57M	7.80M	-292.00K	11.89M
	EBITDA
38.87M	35.25M	-12.23M	28.43M	20.51M	31.42M
	Net Income Common Stockholders
4.30M	438.00K	-39.93M	3.42M	-12.13M	7.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.13M	15.43M	7.29M	8.73M	10.34M	16.84M
	Total Assets
536.19M	530.90M	565.65M	502.77M	485.63M	463.21M
	Total Debt
132.29M	133.17M	133.42M	108.99M	64.97M	41.59M
	Net Debt
125.16M	117.75M	126.14M	100.26M	54.64M	24.75M
	Total Liabilities
458.52M	459.81M	494.08M	389.38M	393.83M	378.21M
	Stockholders Equity
64.64M	58.88M	60.94M	104.33M	82.57M	76.56M
Cash Flow		Free Cash Flow
-3.34M	5.83M	-24.13M	-43.90M	-31.10M	25.17M
	Operating Cash Flow
8.21M	18.03M	-3.69M	-27.21M	-15.87M	33.63M
	Investing Cash Flow
-7.11M	-8.24M	-19.68M	-16.31M	-14.73M	-7.93M
	Financing Cash Flow
-5.11M	-1.35M	21.69M	42.59M	24.40M	-17.22M

Ampco-Pittsburgh Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AP, the sentiment is Positive. The current price of 3.06 is below the 20-day moving average (MA) of 3.20, above the 50-day MA of 2.60, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 7.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AP.

Ampco-Pittsburgh Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	78 Outperform	$2.70B	50.39	13.01%	0.76%	2.61%	-53.74%
GIFI	72 Outperform	$112.27M	9.23	13.54%	―	18.83%	―
AP	71 Outperform	$61.49M	14.05	7.11%	―	-3.60%	―
MEC	70 Neutral	$321.03M	14.75	9.40%	―	-8.42%	164.82%
NWPX	67 Neutral	$381.39M	11.81	9.13%	―	8.06%	38.46%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
TG	58 Neutral	$299.98M	39.79	-1.05%	―	0.24%	―

Ampco-Pittsburgh Corporate Events

Ampco-Pittsburgh Board Members Resign Ahead of May 15

On May 8, 2025, Frederick D. DiSanto and Stephen E. Paul announced their resignation from the Ampco-Pittsburgh Corporation’s Board of Directors, effective May 15, 2025, leading to a reduction in the Board’s size from ten to eight members. Additionally, on March 6, 2025, the Board approved an amendment to the 2016 Omnibus Incentive Plan, increasing the shares available for equity-based awards by 500,000, which was subsequently approved by shareholders on May 8, 2025. This move is expected to enhance the company’s ability to offer competitive compensation packages.