Education
About Us
Working with TipRanks
Follow Us
Aperam SA (APEMY)
OTHER OTC:APEMY
Top Page
Aperam SA
(OTC:APEMY)
Select Model
Select Model
Rating:71Outperform
Price Target:
$44.00
▲(10.00% Upside)
Aperam SA's overall stock score reflects a balance of strengths and challenges. Strong technical indicators and cash flow performance are significant positives. However, profitability issues and valuation concerns due to a negative P/E ratio weigh on the score. The earnings call highlights both opportunities and risks, with European volume growth and CBAM policy progress being key positives.
Positive Factors
Cash Flow Performance
Strong cash flow growth indicates robust cash generation ability, providing the company with flexibility to invest in growth opportunities and manage debt.
CBAM Policy Progress
CBAM policy progress supports long-term competitive positioning by potentially leveling the playing field against non-EU producers.
European Volume Growth
Growth in European volumes suggests a strengthening market position, enhancing revenue stability and potential margin improvements.
Negative Factors
Profitability Challenges
Negative profit margins highlight operational inefficiencies and market pressures, potentially impacting long-term financial health.
Increased Financing Costs
Higher financing costs can strain cash flows and reduce profitability, limiting the company's ability to invest in growth initiatives.
Weakness in Oil and Gas Market
Weak demand in the oil and gas sector impacts the alloys segment, potentially reducing revenue and profitability in this key market.
Aperam SA (APEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.93B
Dividend Yield5.12%
Average Volume (3M)41.00
Price to Earnings (P/E)―
Beta (1Y)0.88
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 Cap1.10
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit0.52
Enterprise Value/Ebitda8.83
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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's financial statements present a mixed picture. The company shows strong cash flow performance and a stable balance sheet, but recent profitability challenges are evident in the income statement. Revenue growth is inconsistent, and margins have been under pressure. The company's leverage is manageable, but the negative return on equity in the TTM period is concerning.Income Statement
Aperam SA shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 2.46%, but the company is currently experiencing a negative net profit margin of -0.13%, reflecting recent profitability challenges. Historical data shows fluctuating revenue growth and declining margins, suggesting volatility in earnings. The EBIT and EBITDA margins have decreased over time, indicating pressure on operational efficiency.Balance Sheet
The balance sheet of Aperam SA demonstrates a moderate financial position. The debt-to-equity ratio is relatively low at 0.43, indicating manageable leverage. However, the return on equity has turned negative in the TTM period, highlighting recent profitability issues. The equity ratio remains stable, suggesting a solid capital structure, but the declining ROE is a concern.Cash Flow
Aperam SA's cash flow statement reveals strong free cash flow growth in the TTM period, with a significant increase of 106.96%. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio has been inconsistent, reflecting variability in cash flow management. Overall, cash flow performance is a positive aspect of the company's financials.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.43B | 6.25B | 6.59B | 8.16B | 5.10B | 3.62B |
| Gross Profit | 6.19B | 449.00M | 330.00M | 1.18B | 1.23B | 368.00M |
| EBITDA | 366.47M | 354.00M | 364.00M | 958.00M | 1.20B | 391.00M |
| Net Income | -11.54M | 231.00M | 203.00M | 625.00M | 968.00M | 175.00M |
Balance Sheet | ||||||
| Total Assets | 6.23B | 5.84B | 6.21B | 6.26B | 5.91B | 3.97B |
| Cash, Cash Equivalents and Short-Term Investments | 376.00M | 216.00M | 443.00M | 457.00M | 524.00M | 358.00M |
| Total Debt | 1.60B | 760.00M | 934.00M | 925.00M | 990.00M | 425.00M |
| Total Liabilities | 2.46B | 2.47B | 2.76B | 2.87B | 2.96B | 1.76B |
| Stockholders Equity | 3.75B | 3.35B | 3.44B | 3.38B | 2.94B | 2.20B |
Cash Flow | ||||||
| Free Cash Flow | 314.58M | 125.00M | 170.00M | 346.00M | 398.00M | 194.00M |
| Operating Cash Flow | 454.76M | 280.00M | 471.00M | 642.00M | 550.00M | 303.00M |
| Investing Cash Flow | -586.75M | -155.00M | -303.00M | -297.00M | -183.00M | -108.00M |
| Financing Cash Flow | 268.99M | -336.00M | -152.00M | -419.00M | -197.00M | -185.00M |
Aperam SA Technical Analysis
Positive
40.00
Price Trends
38.13
Positive
35.71
Positive
32.70
Positive
Market Momentum
1.01
Positive
56.21
Neutral
30.78
Neutral
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 40 is below the 20-day moving average (MA) of 40.80, above the 50-day MA of 38.13, and above the 200-day MA of 32.70, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 30.78 is Neutral, 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 | $5.04B | 25.56 | 5.84% | ― | -16.81% | -67.68% | |
71 Outperform | $2.93B | -328.99 | 5.89% | 5.12% | -0.40% | -102.89% | |
71 Outperform | $34.94B | 14.28 | 4.72% | 1.03% | -4.51% | ― | |
68 Neutral | $7.86B | 13.69 | 4.80% | 7.02% | -16.69% | 585.38% | |
67 Neutral | $7.32B | 14.95 | 5.21% | 2.92% | -2.53% | -36.08% | |
65 Neutral | $8.04B | 18.67 | 10.51% | 1.02% | -1.61% | -81.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
APEMY
Aperam SA
41.49
17.02
69.59%
MT
ArcelorMittal
47.31
25.31
115.05%
CMC
Commercial Metals Company
70.61
22.81
47.72%
GGB
Gerdau SA
3.95
1.27
47.39%
SIM
Grupo Simec SA De CV
30.11
3.11
11.50%
TX
Ternium SA
40.35
13.74
51.63%
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.