SGL Carbon (SGL) AI Stock Analysis

• Market Cap: €501.89M
• Dividend Yield: N/A
• Average Volume (3M): 200.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -14.48%
• EPS Growth: -340.02%
• Country: DE
• Employees: 4,277
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.16
• Shares Outstanding: 122,341,480
• 10 Day Avg. Volume: 185,560
• 30 Day Avg. Volume: 200,581
• PEG Ratio: 0.02
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 21.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.42
• Price Target Upside: -16.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €4.00 ▼(-2.44% Downside)

The score is primarily held back by weak financial performance (loss-making with negative margins and ROE, and declining revenue). Technicals provide a partial offset with price strength above major moving averages and positive MACD, but overbought signals add risk. Valuation is constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Diversified advanced materials portfolio

Operating across graphite electrodes, specialty graphites and carbon fibers for automotive, aerospace, energy and electronics provides durable revenue breadth. Multiple end markets and two distinct segments reduce single-market risk and align with long-term trends like lightweighting and electrification.

Manageable leverage

A sub-1.0 debt/equity ratio offers financial flexibility to fund R&D, capex and restructuring without excessive insolvency risk. Manageable leverage supports strategic investments and gives time to recover margins, making balance-sheet risk less acute over the next several months.

Improving free cash flow growth

Strong FCF growth indicates operational improvements and better cash generation despite earnings weakness. Improved cash generation funds working capital and selective capex, enabling investment in high-return projects and reducing reliance on external financing over the medium term.

Negative Factors

Negative profitability metrics

Persistent negative margins and deeply negative ROE erode shareholder equity and limit the firm's ability to self-fund growth. Until structural margins are restored through pricing, mix shift or cost reduction, profitability shortfalls will constrain sustainable returns and long-term capital allocation.

Declining revenue trend

Falling top-line restricts operating leverage and makes margin recovery more difficult. A sustained revenue decline across industrial end markets implies competitive pressure or weaker demand, forcing the company to defend share or expand into new markets to stabilize long-term growth.

Weak cash conversion covering losses

Low conversion of accounting losses into cash means reported losses still strain liquidity and limit reinvestment. With operating cash covering a minority of net losses, the firm faces constraints on capex and deleveraging without external funding, increasing structural financing risk.

SGL Carbon Business Overview & Revenue Model

Company Description

SGL Carbon SE, together with its subsidiaries, engages in the manufacture and sale of carbon fiber and specialty graphite products in Germany, rest of Europe, the United States, China, Asia, Latin America, Africa, and Australia. The company operates in Graphite Solutions; Process Technology; Caron Fibers; and Composite Solutions segment. It offers products for automotive industries, including body and main parts; carbon-ceramic brake discs; battery solutions; friction materials; chassis components; gas diffusion layers and bipolar plates; vanes and rotors; sealing materials; bearing seals; and miscellaneous products, as well as materials for thermal management. The company also provides composite solutions that include energy storage systems, lead springs, and friction materials; fuel cells for energy conversion, as well as for passenger cars and trains or ferries for zero emission mobile applications; and carbon fibers and semi-finished products based on glass and carbon fibers. In addition, it offers isostatic graphite to produce compound semiconductor layers; silicon carbide coatings for semiconductor production; and heat exchangers, columns, quenchers, pumps, and pipings, as well as sealing materials for process technology. SGL Carbon SE was founded in 1878 and is headquartered in Wiesbaden, Germany.

How the Company Makes Money

SGL Carbon generates revenue primarily through the sale of its graphite and composite products across different industries. Key revenue streams include the production and sale of graphite electrodes, which are essential in electric arc furnaces for steel production, and specialty graphites used in various applications such as automotive and aerospace components. Additionally, the company earns income from its carbon fibers and composite materials, which are increasingly used in lightweight construction and high-performance applications. SGL also engages in strategic partnerships and collaborations with industrial firms and research institutions to develop advanced materials, enhancing its market position and driving revenue growth.

SGL Carbon Financial Statement Overview

Summary

Financials are pressured by weak profitability and growth (TTM net margin -14.99%, revenue growth -4.69%, negative ROE -25.26%). Leverage is manageable (debt-to-equity 0.47) and cash flow shows some resilience with positive free cash flow growth (31.55%), but overall fundamentals remain challenged.

Income Statement

SGL Carbon's income statement reveals a challenging financial position. The TTM data shows a negative net profit margin of -14.99% and declining revenue growth of -4.69%. The company has struggled with profitability, as evidenced by negative EBIT and EBITDA margins. Historical data indicates fluctuating revenue growth and profitability, with a significant decline in net income from 2022 to 2025.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.47 in the TTM period, indicating manageable leverage. However, the return on equity is negative at -25.26%, reflecting poor profitability. The equity ratio is relatively stable, suggesting a balanced asset structure, but the declining equity and increasing debt over the years pose potential risks.

Cash Flow

Cash flow analysis indicates some strengths, with a positive free cash flow growth rate of 31.55% in the TTM period. The operating cash flow to net income ratio is 0.41, showing that operating cash flow covers a portion of net losses. However, the free cash flow to net income ratio is low at 0.19, highlighting challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	897.40M	1.03B	1.09B	1.14B	1.01B	919.40M
Gross Profit	208.60M	228.90M	235.60M	253.60M	210.30M	180.30M
EBITDA	-34.40M	124.60M	121.50M	189.60M	158.20M	-27.40M
Net Income	-164.40M	-80.30M	41.00M	126.90M	75.40M	-130.10M
Balance Sheet
Total Assets	1.20B	1.34B	1.47B	1.48B	1.38B	1.26B
Cash, Cash Equivalents and Short-Term Investments	136.90M	148.20M	199.40M	229.70M	222.20M	142.50M
Total Debt	233.70M	256.10M	308.80M	397.30M	459.30M	452.50M
Total Liabilities	714.90M	772.30M	857.70M	901.70M	995.50M	1.03B
Stockholders Equity	476.20M	554.90M	605.30M	569.30M	371.50M	220.70M
Cash Flow
Free Cash Flow	24.60M	23.00M	76.70M	41.50M	64.40M	48.20M
Operating Cash Flow	93.60M	120.30M	163.80M	94.40M	114.40M	104.00M
Investing Cash Flow	-70.70M	-34.40M	-133.20M	-26.60M	-2.90M	-28.20M
Financing Cash Flow	-81.80M	-90.50M	-121.70M	-60.10M	-33.90M	-66.30M

SGL Carbon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4.1 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.20, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 70.81 is Negative, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SGL.

SGL Carbon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCH	62 Neutral	€3.41B	-4.37	―	3.75%	-10.63%	-23.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SDF	55 Neutral	€2.48B	-1.46	-32.34%	1.23%	-1.67%	-6688.89%
SGL	53 Neutral	€501.89M	-3.05	-29.56%	―	-14.48%	-340.02%
WAF	52 Neutral	€1.58B	-58.23	-1.40%	0.43%	-5.17%	-128.32%
LXS	46 Neutral	€1.51B	-6.20	-5.69%	0.59%	-6.82%	71.94%