SGL Carbon (SGL) AI Stock Analysis

• Market Cap: €462.77M
• Dividend Yield: N/A
• Average Volume (3M): 127.39K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.13
• Revenue Growth: -8.34%
• EPS Growth: -357.87%
• Country: DE
• Employees: 4,277
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): -0.05
• Shares Outstanding: 122,341,480
• 10 Day Avg. Volume: 105,911
• 30 Day Avg. Volume: 127,385
• PEG Ratio: 0.10
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.42
• 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: €5.23
• Price Target Upside: 39.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: €4.00 ▲(6.67%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 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 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03B	1.09B	1.14B	1.01B	919.40M
	Gross Profit
228.90M	235.60M	253.60M	210.30M	180.30M
	EBIT
-14.30M	56.60M	120.90M	87.40M	7.60M
	EBITDA
51.50M	121.50M	162.40M	158.20M	-27.40M
	Net Income Common Stockholders
-80.30M	41.00M	126.90M	75.40M	-130.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
148.20M	199.40M	229.70M	222.20M	142.50M
	Total Assets
1.34B	1.47B	1.48B	1.38B	1.26B
	Total Debt
256.10M	308.80M	397.30M	459.30M	452.50M
	Net Debt
108.10M	174.40M	170.00M	238.40M	310.70M
	Total Liabilities
772.30M	857.70M	901.70M	995.50M	1.03B
	Stockholders Equity
554.90M	605.30M	569.30M	371.50M	220.70M
Cash Flow		Free Cash Flow
23.00M	76.70M	41.50M	64.40M	48.20M
	Operating Cash Flow
120.30M	163.80M	94.40M	114.40M	104.00M
	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 Price: 3.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.75 is above the 20-day moving average (MA) of 3.68, above the 50-day MA of 3.53, and below the 200-day MA of 4.22, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCH	67 Neutral	$3.23B	13.42	5.37%	3.77%	-10.63%	-23.15%
WAF	66 Neutral	€1.14B	28.64	2.02%	0.53%	-2.61%	-72.43%
SDF	61 Neutral	€2.83B	91.49	0.00%	0.95%	-1.06%	―
1COV	57 Neutral	€11.02B	―	-6.00%	―	0.01%	-88.69%
LXS	57 Neutral	$2.37B	―	-3.92%	0.36%	-5.18%	-139.96%
SGL	55 Neutral	€462.77M	6.85	-16.90%	―	-8.34%	-357.87%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%