Aperam SA (APEMY) AI Stock Analysis

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Aperam SA

(OTC:APEMY)

Rating:64Neutral

Price Target:―

Aperam SA's overall stock score is driven by its moderate financial performance, with a strong balance sheet but challenges in profitability and cash flow. The valuation is attractive due to a low P/E ratio and high dividend yield. Technical indicators suggest potential short-term weakness, but the stock remains appealing for value and income investors.

Aperam SA (APEMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.22B

Dividend Yield7.59%

Average Volume (3M)0.00

Price to Earnings (P/E)10.6

Beta (1Y)1.09

Revenue Growth0.20%

EPS Growth192.49%

CountryUS

Employees12,007

SectorBasic Materials

Sector Strength66

IndustrySteel

Share Statistics

EPS (TTM)0.29

Shares Outstanding78,036,690

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio0.54

Price to Book (P/B)0.55

Price to Sales (P/S)0.29

P/FCF Ratio14.64

Enterprise Value/Market Cap1.66

Enterprise Value/Revenue0.59

Enterprise Value/Gross Profit0.59

Enterprise Value/Ebitda9.53

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering1

Aperam SA Business Overview & Revenue Model

Company DescriptionAperam S.A., together with its subsidiaries, engages in the production and sale of stainless and specialty steel products worldwide. It operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties. The company offers range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. It serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. The company distributes its products through a network of service centers, transformation facilities, and sales offices. Aperam S.A. was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg.

How the Company Makes MoneyAperam generates revenue primarily through the sale of its stainless steel and specialty steel products. The company's revenue model is based on the production and distribution of high-quality steel products to various industries, with key revenue streams coming from both domestic and international sales. Additionally, Aperam benefits from long-term contracts with major customers in the automotive and construction sectors, which provide stable income. The company also engages in recycling, contributing to cost savings and sustainability initiatives, which can further enhance profitability. Partnerships with suppliers for raw materials and collaborations with customers for specialized products play a significant role in maintaining its competitive edge and driving earnings.

Aperam SA Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: -0.23%|

Next Earnings Date:Nov 07, 2025

Earnings Call Sentiment Neutral

The earnings call revealed a mix of positive developments in Brazil and the alloys division, countered by challenges in the European market and uncertainties in the Recycling and Renewables division. The management remains confident about the future, particularly with expected regulatory changes in Europe, but immediate challenges persist.

Q2-2025 Updates

Positive Updates

Brazil's Strong Performance

Brazil continues to have a strong order book and remains cost-competitive, supported by domestic demand rather than exports.

Positive Outlook for Alloys Division

Despite a plant failure, the alloys division is in a growth phase with expected better volumes as aerospace destocking ends.

Confidence in European Steel and Metal Action Plan

The European Commission's engagement on the action plan is viewed positively, with potential impacts from 2026.

Stable Bioenergia Performance

Bioenergia remains stable, with seasonal effects typically seen at the end of the year.

Negative Updates

Alloys Division Plant Failure

A plant failure in the alloys division resulted in a EUR 10 million impact, split between repair costs and loss of production, affecting Q3.

Weak Scrap Market for Recycling and Renewables

The division faced a soft start to the year due to declining scrap prices and lower offtake in certain regions.

European Market Challenges

Persistent challenges in Europe due to low demand and high levels of imports, although flexibility in production is maintained.

CBAM Parameters Unclear

Key parameters of the Carbon Border Adjustment Mechanism (CBAM) are still undefined, creating uncertainty for planning.

Company Guidance

During the call, Aperam provided guidance for several aspects of their business. In the alloys division, a plant failure resulted in costs around EUR 10 million, with impacts expected to show in Q3, while the global market showed mixed demand due to aerospace destocking. The company anticipates no major weakness in Q3 EBITDA for alloys due to typical seasonality. In Brazil, despite U.S. tariff hikes, Aperam doesn't foresee direct impacts and expects Brazil to continue performing well with strong domestic demand. The European market remains challenging with low volumes, but Aperam plans to maintain cost leadership through flexible production adaption. The alloys division is expected to maintain a run rate close to EUR 100 million in EBITDA, while Recycling and Renewables, despite a soft start, aim for a normalized EBITDA of EUR 80-85 million. CBAM is anticipated to positively impact Aperam starting in 2026, although specific parameters are still being determined. Overall, the company remains focused on strengthening its competitive footprint.

Aperam SA Financial Statement Overview

Summary

Aperam SA demonstrates moderate financial health with strong cost management and a debt-free balance sheet enhancing resilience. However, challenges exist in revenue growth and cash flow management, with profitability ratios indicating areas for improvement.

Income Statement

Positive

Aperam SA has demonstrated a volatile revenue trend with a decline from 2022 to 2023, followed by a slight recovery in 2024. The gross profit margin has significantly improved in 2024, indicating better cost management. However, the net profit margin remains modest, reflecting challenges in controlling operating costs. The EBIT and EBITDA margins show a strong recovery in operational efficiency compared to previous years.

Balance Sheet

Positive

The balance sheet shows a strong equity position with no debt as of 2024, which significantly reduces financial risk and improves stability. The equity ratio is robust, indicating a solid capital structure. Return on equity has decreased over the years, reflecting reduced profitability relative to equity.

Cash Flow

Neutral

Aperam's cash flow performance has been mixed, with a decline in free cash flow growth due to lower operating cash flow and increased capital expenditures in 2024. The company maintains a healthy operating cash flow to net income ratio, indicating efficient cash conversion. However, the free cash flow to net income ratio has declined, suggesting pressure on cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28B	6.25B	6.59B	8.16B	5.10B	3.62B
Gross Profit	6.28B	449.00M	330.00M	1.18B	1.23B	368.00M
EBITDA	387.00M	354.00M	293.00M	1.08B	1.20B	391.00M
Net Income	192.00M	231.00M	203.00M	625.00M	968.00M	175.00M
Balance Sheet
Total Assets	5.35B	5.84B	6.21B	6.26B	5.91B	3.97B
Cash, Cash Equivalents and Short-Term Investments	239.00M	216.00M	443.00M	457.00M	524.00M	358.00M
Total Debt	0.00	760.00M	934.00M	925.00M	990.00M	425.00M
Total Liabilities	2.15B	2.47B	2.76B	2.87B	2.96B	1.76B
Stockholders Equity	3.19B	3.35B	3.44B	3.38B	2.94B	2.20B
Cash Flow
Free Cash Flow	152.00M	125.00M	170.00M	346.00M	398.00M	194.00M
Operating Cash Flow	296.00M	280.00M	471.00M	642.00M	550.00M	303.00M
Investing Cash Flow	-558.00M	-155.00M	-303.00M	-297.00M	-183.00M	-108.00M
Financing Cash Flow	233.00M	-336.00M	-152.00M	-419.00M	-197.00M	-185.00M

Aperam SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price30.44

Price Trends

50DMA

31.32

Negative

100DMA

30.58

Negative

200DMA

29.42

Positive

Market Momentum

MACD

-0.30

Negative

RSI

46.84

Neutral

STOCH

89.44

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APEMY, the sentiment is Negative. The current price of 30.44 is below the 20-day moving average (MA) of 30.92, below the 50-day MA of 31.32, and above the 200-day MA of 29.42, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 89.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APEMY.

Aperam SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (44)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TX	70 Neutral	$6.33B	10.82	4.89%	8.37%	-16.83%	―
MT	69 Neutral	$27.56B	10.14	4.72%	1.43%	-4.36%	―
GGB	66 Neutral	$5.81B	10.55	5.77%	3.52%	-6.55%	-37.93%
APEMY	64 Neutral	$2.22B	10.58	5.89%	7.59%	0.20%	192.49%
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
SID	47 Neutral	$1.70B	―	-15.57%	17.38%	-10.77%	-191.87%
Sector *	44 Neutral	C$925.44M	-8.84	-0.23%	2.69%	24.64%	-41.43%

* Basic Materials Sector Average

Performance Comparison

APEMY

Aperam SA

30.44

4.78

18.63%

ArcelorMittal

33.91

11.97

54.56%

GGB

Gerdau SA

2.96

-0.09

-2.95%

SID

Companhia Siderúrgica Nacional

1.32

-0.67

-33.67%

Ternium SA

32.24

0.75

2.38%

United States Steel

54.84

13.21

31.73%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 15, 2025