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SGL Carbon (0MPL) (DE:SGL)
:SGL

SGL Carbon (SGL) AI Stock Analysis

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DE

SGL Carbon

(LSE:SGL)

Rating:55Neutral
Price Target:
€4.00
▲(5.82%Upside)
SGL Carbon's overall score is primarily impacted by financial performance challenges, including declining revenue and profitability. The technical analysis suggests some short-term positive momentum, but valuation remains a concern with a negative P/E ratio and no dividend yield. The absence of earnings call and corporate events data limits further insights.
Positive Factors
Joint Ventures
The valuation does not seem to reflect the value of the Brembo ceramic brake disk joint venture, indicating potential undervaluation.
Market Position
SGL is well positioned to benefit from the expected return to structural growth in the EV market due to its role as the largest supplier of graphite to the SiC wafer market.
Stock Valuation
Upside for the stock comes from SGL trading at depressed multiples, suggesting potential for price appreciation.
Negative Factors
Demand Weakness
There is limited visibility on SGL's overall development due to weak demand in the GS business and restructuring in the CF business.
Financial Performance
The company's EBITDA guidance suggests a decline, with a midpoint implying a -16% year-over-year decrease.
Market Environment
Comments on 2025 point to a persistently difficult market environment, particularly for semiconductor and automotive applications.

SGL Carbon (SGL) vs. iShares MSCI Germany ETF (EWG)

SGL Carbon Business Overview & Revenue Model

Company DescriptionSGL Carbon is a leading global manufacturer of products made from carbon. The company operates in sectors such as automotive, aerospace, energy, and industrial applications. SGL Carbon's core products include carbon fibers, graphite electrodes, and specialty graphite solutions. These materials are integral to a wide range of applications, including lightweight vehicle components, battery and fuel cell technology, and high-temperature industrial processes.
How the Company Makes MoneySGL Carbon generates revenue primarily through the sale of its carbon-based products and solutions. The company's key revenue streams include the production and sale of carbon fibers used in lightweight structural components for the automotive and aerospace industries, graphite electrodes essential for steel production in electric arc furnaces, and specialty graphite products used in semiconductor manufacturing and solar energy applications. Additionally, SGL Carbon engages in strategic partnerships and collaborations to enhance its technological capabilities and expand its market reach, contributing to its earnings.

SGL Carbon Financial Statement Overview

Summary
SGL Carbon's financial performance is challenged by declining revenue and profitability. The income statement shows negative net margins and deteriorated EBIT/EBITDA margins. The balance sheet is moderately stable with a manageable debt-to-equity ratio, but negative return on equity. Positive operating cash flow provides some stability, though declining free cash flow limits growth.
Income Statement
45
Neutral
SGL Carbon's revenue has been declining, with a negative growth rate in recent years. The company experienced a gross profit margin of 22.3% in the latest year, down from previous years. The net profit margin turned negative due to significant losses, reflecting operational challenges. EBIT and EBITDA margins have also deteriorated, indicating weakened profitability.
Balance Sheet
60
Neutral
SGL Carbon maintains a relatively stable equity position, with a debt-to-equity ratio of 0.46. However, the return on equity has been negative due to net losses, indicating inefficiencies in generating returns from equity. The equity ratio suggests a moderate reliance on debt financing, but manageable within industry norms.
Cash Flow
55
Neutral
The company's operating cash flow remains positive, indicating operational cash generation. However, free cash flow has declined, negatively impacting its growth potential. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio is less favorable due to negative net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.03B1.09B1.14B1.01B919.40M
Gross Profit
228.90M235.60M253.60M210.30M180.30M
EBIT
-14.30M56.60M120.90M87.40M7.60M
EBITDA
51.50M121.50M162.40M158.20M-27.40M
Net Income Common Stockholders
-80.30M41.00M126.90M75.40M-130.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
148.20M199.40M229.70M222.20M142.50M
Total Assets
1.34B1.47B1.48B1.38B1.26B
Total Debt
256.10M308.80M397.30M459.30M452.50M
Net Debt
108.10M174.40M170.00M238.40M310.70M
Total Liabilities
772.30M857.70M901.70M995.50M1.03B
Stockholders Equity
554.90M605.30M569.30M371.50M220.70M
Cash FlowFree Cash Flow
23.00M76.70M41.50M64.40M48.20M
Operating Cash Flow
120.30M163.80M94.40M114.40M104.00M
Investing Cash Flow
-34.40M-133.20M-26.60M-2.90M-28.20M
Financing Cash Flow
-90.50M-121.70M-60.10M-33.90M-66.30M

SGL Carbon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.78
Price Trends
50DMA
3.53
Positive
100DMA
3.76
Positive
200DMA
4.23
Negative
Market Momentum
MACD
0.04
Negative
RSI
56.43
Neutral
STOCH
63.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SGL, the sentiment is Positive. The current price of 3.78 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 3.53, and below the 200-day MA of 4.23, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 63.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SGL.

SGL Carbon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEWCH
66
Neutral
$3.09B12.805.37%3.72%-10.63%-23.15%
DESDF
61
Neutral
€2.83B91.490.00%0.95%-1.06%
DEWAF
57
Neutral
€1.11B27.932.02%0.53%-2.61%-72.43%
57
Neutral
€11.02B-6.00%0.01%-88.69%
DELXS
57
Neutral
$2.37B-3.92%0.36%-5.18%-139.96%
DESGL
55
Neutral
€462.77M6.85-16.90%-8.34%-357.87%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:SGL
SGL Carbon
3.79
-3.68
-49.33%
DE:SDF
K+S Aktiengesellschaft
15.80
3.20
25.37%
DE:WCH
Wacker Chemie AG
65.10
-30.93
-32.21%
DE:WAF
Siltronic
37.90
-38.46
-50.37%
DE:1COV
Covestro
59.74
7.56
14.49%
DE:LXS
LANXESS
26.98
4.50
20.00%
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.