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Aperam SA (APEMY)
OTHER OTC:APEMY
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Aperam SA
(OTC:APEMY)
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Rating:66Neutral
Price Target:
$42.00
▲(10.01% Upside)
Aperam SA's overall stock score reflects its moderate financial health, strong technical momentum, and mixed earnings outlook. The company's debt-free balance sheet and attractive dividend yield are strengths, but challenges in profitability and cash flow management, along with a negative P/E ratio, weigh on the score.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet significantly reduces financial risk and enhances stability, providing a solid foundation for future growth.
CBAM Policy Progress
The implementation of CBAM will enhance competitiveness by leveling the playing field against non-EU producers, potentially boosting margins.
Strong Cost Management
Effective cost management improves profitability and operational efficiency, allowing the company to better withstand market fluctuations.
Negative Factors
Increased Financing Costs
Higher financing costs can strain cash flow and reduce profitability, potentially limiting investment in growth opportunities.
Challenges in Brazil
Price pressures in Brazil could impact profitability and market share, challenging the company's ability to maintain its competitive position.
Weakness in Oil and Gas Market
Weak demand in the oil and gas sector can hinder revenue growth and delay achieving profitability targets in the alloys segment.
Aperam SA (APEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.44B
Dividend Yield5.4%
Average Volume (3M)41.00
Price to Earnings (P/E)11.7
Beta (1Y)1.07
Revenue Growth-0.40%
EPS Growth-102.89%
CountryUS
Employees12,007
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.32
Shares Outstanding78,036,690
10 Day Avg. Volume0
30 Day Avg. Volume41
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 Cap1.51
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit0.59
Enterprise Value/Ebitda9.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aperam SA Business Overview & Revenue Model
Company DescriptionAperam SA is a global leader in stainless steel and specialty steel production, headquartered in Luxembourg. The company operates in two primary segments: Stainless & Electrical Steel and Alloys & Specialties. Aperam's core products include stainless steel flat products, electrical steel, and various alloyed steels. The company serves a diverse range of industries, including automotive, construction, consumer goods, and energy, providing high-performance materials that meet stringent quality standards.
How the Company Makes MoneyAperam generates revenue through the production and sale of stainless steel and specialty steel products. The company's key revenue streams include the sale of flat stainless steel products, which are utilized in various applications such as automotive manufacturing and construction, and electrical steel, which is essential for energy-efficient motors and transformers. Aperam also earns revenue from its Alloys & Specialties segment, which provides advanced material solutions for high-tech industries. Significant partnerships with manufacturers and suppliers, along with a focus on sustainability and innovation, contribute to its earnings. The company benefits from a vertically integrated business model that includes raw material sourcing and production efficiency, allowing it to optimize costs and enhance profitability.
Aperam SA Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Neutral
The call highlighted a positive outlook for European volumes and CBAM policy progress, while facing challenges in Brazil and the oil and gas market. The aerospace market shows potential for recovery in 2026, but issues with CBAM implementation and increased financing costs pose concerns.Q3-2025 Updates
Positive Updates
Positive Outlook for European Volumes
Despite challenges, there is an expected increase in volumes in Europe due to seasonal demand recovery, contrasting with competitors' guidance.
CBAM Policy Progress
The CBAM (Carbon Border Adjustment Mechanism) policy is on track, with progressive ramp-up starting January 2026, including key components like precursor inclusion and melt report for improved traceability.
Strong Aerospace Market Fundamentals
Despite current destocking, the aerospace market remains solid with a healthy order book, anticipating recovery in 2026.
Expected Recovery in Import Levels
With the implementation of CBAM and other policies, European market utilization rates are expected to improve, leading to better margins.
Negative Updates
Price Pressures in Brazil
Non-stainless steel products in Brazil are facing price pressure from imports, affecting profitability, although the impact is not significant.
Weakness in Oil and Gas Market
Temporary weakness in the oil and gas market is affecting the alloys business, impacting the achievement of the EUR 100 million EBITDA target for the year.
Challenges with CBAM Implementation
Concerns about potential loopholes and circumvention in CBAM policy, including the need for quick adaptation to prevent exploitation.
Increased Financing Costs
Rising interest rates and refinancing are expected to increase financing costs, impacting financial performance.
Company Guidance
During the Aperam Third Quarter 2025 Results Conference Call, the company provided guidance on several key metrics. The call addressed price pressures in Brazil, specifically in the non-stainless steel segment, and highlighted the minimal impact on margins despite the situation. The CEO discussed the upcoming Carbon Border Adjustment Mechanism (CBAM), noting its January 2026 implementation and its gradual ramp-up over seven years, with clear indications that Scope 2 emissions will not be included. Additionally, the company expects an increase in European volumes due to seasonal effects, while Brazilian volumes may decrease but remain in line with seasonality. The aerospace market has been soft due to prolonged destocking, but a recovery is anticipated in 2026. Financially, the company aims to achieve an annualized EUR 100 million EBITDA for the alloys segment despite current market weaknesses, with synergy benefits from the Universal acquisition expected to begin contributing next year. Finally, financing costs were discussed, with an anticipated increase due to recent refinancing activities.Aperam SA Financial Statement Overview
Summary
Aperam SA shows moderate financial health with strong cost management and a debt-free balance sheet, enhancing resilience. However, challenges in revenue growth and cash flow management, along with modest profitability ratios, indicate areas for improvement.Income Statement
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.65
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.60
Neutral
| 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 | 364.00M | 958.00M | 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
Positive
38.18
Price Trends
36.24
Positive
33.40
Positive
31.70
Positive
Market Momentum
0.79
Negative
62.98
Neutral
84.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APEMY, the sentiment is Positive. The current price of 38.18 is above the 20-day moving average (MA) of 36.69, above the 50-day MA of 36.24, and above the 200-day MA of 31.70, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 62.98 is Neutral, neither overbought nor oversold. The STOCH value of 84.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APEMY.
Aperam SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.62B | 23.68 | 5.84% | ― | -16.81% | -67.68% | |
73 Outperform | $7.54B | 13.14 | 4.80% | 7.03% | -16.69% | 585.38% | |
71 Outperform | $30.80B | 11.38 | 4.72% | 1.11% | -4.51% | ― | |
69 Neutral | $7.42B | 90.10 | 1.99% | 1.08% | -1.61% | -81.36% | |
67 Neutral | $6.62B | 13.17 | 5.21% | 3.15% | -2.53% | -36.08% | |
66 Neutral | $2.44B | 11.75 | 5.89% | 5.40% | -0.40% | -102.89% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
APEMY
Aperam SA
38.18
9.80
34.53%
MT
ArcelorMittal
42.26
16.86
66.38%
CMC
Commercial Metals Company
66.86
5.46
8.89%
GGB
Gerdau SA
3.48
0.13
3.88%
SIM
Grupo Simec SA De CV
28.99
1.58
5.76%
TX
Ternium SA
38.43
8.72
29.35%
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.