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SGL Carbon (0MPL) (DE:SGL)
:SGL
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SGL Carbon (SGL) AI Stock Analysis

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DE:SGL

SGL Carbon

(LSE:SGL)

Rating:51Neutral
Price Target:
€3.50
▼(-5.41%Downside)
SGL Carbon's overall stock score is driven by significant financial challenges, including declining revenues and negative profitability. The technical analysis suggests some stability in the short term, but the valuation remains unattractive due to negative earnings and lack of dividend yield. Addressing operational inefficiencies and enhancing revenue growth are critical for future improvement.
Positive Factors
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.
Profitability
Improved profitability from discontinuing loss-making activities in the Carbon Fibers business unit supports stable adjusted EBITDA guidance.
Stock Valuation
Upside for the stock comes from SGL trading at depressed multiples, suggesting potential for price appreciation.
Negative Factors
Financial Guidance
SGL Carbon has revised its sales guidance for 2025, now expecting a year-on-year decline in sales of between 10-15%.
Market Environment
Comments on 2025 point to a persistently difficult market environment, particularly for semiconductor and automotive applications.
Sales Performance
Sales declined by 15.8% year-on-year to €453m, primarily due to sustained weakness in demand from semiconductor customers for special graphite components.

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

SGL Carbon Business Overview & Revenue Model

Company DescriptionSGL 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 MoneySGL Carbon generates revenue through the production and sale of its carbon-based products, serving a diverse range of industries. The company earns money primarily from its two main business units: Composites – Fibers & Materials, which supplies carbon fibers and composite materials to the automotive and aerospace industries; and Graphite Materials & Systems, which provides specialty graphite products to sectors like semiconductor, energy, and chemicals. Key revenue streams include the sale of standard and custom-engineered products, as well as ongoing partnerships and collaborations with major industry players to develop advanced materials and technologies that meet specific client needs. These partnerships and the company's focus on innovation and quality contribute significantly to its earnings.

SGL Carbon Financial Statement Overview

Summary
SGL Carbon faces significant financial challenges, with declining revenues and profitability. The income statement reflects substantial losses and a negative EBIT margin, indicating operational difficulties. The balance sheet shows moderate leverage but declining equity, and while operating cash flow is positive, free cash flow has decreased significantly.
Income Statement
45
Neutral
The income statement reflects significant challenges with profitability. The gross profit margin remains moderate at approximately 22.2% TTM, but the net profit margin is negative due to substantial losses. Revenue has declined by approximately 3.6% from the previous annual period. The negative EBIT margin of -3.8% TTM indicates operational difficulties, and the company has struggled to maintain positive EBITDA margins. Overall, the financial performance shows declining revenues and negative profitability, posing risks to recovery.
Balance Sheet
60
Neutral
The balance sheet shows a mixed picture. The debt-to-equity ratio is relatively high at 0.42, indicating significant leverage. However, the equity ratio is fairly healthy at around 41.3%, suggesting a stable capital structure. Return on equity has drastically declined due to losses, pointing to issues in generating shareholder value. While the company maintains a stable asset base, high leverage and declining equity pose risks.
Cash Flow
55
Neutral
Cash flow analysis reveals some strengths but also concerns. The operating cash flow is positive, contributing to a positive free cash flow. However, free cash flow has decreased by approximately 21.7% from the previous annual period. The operating cash flow to net income ratio is not meaningful due to negative net income, but the company has been able to generate cash to service its debt. The company's ability to generate operating cash flow is crucial given its current financial struggles.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue988.10M1.03B1.09B1.14B1.01B919.40M
Gross Profit219.40M228.90M235.60M253.60M210.30M180.30M
EBITDA23.90M51.50M121.50M162.40M158.20M-27.40M
Net Income-99.00M-80.30M41.00M126.90M75.40M-130.10M
Balance Sheet
Total Assets1.32B1.34B1.47B1.48B1.38B1.26B
Cash, Cash Equivalents and Short-Term Investments145.20M148.20M199.40M229.70M222.20M142.50M
Total Debt231.70M256.10M308.80M397.30M459.30M452.50M
Total Liabilities766.80M772.30M857.70M901.70M995.50M1.03B
Stockholders Equity546.20M554.90M605.30M569.30M371.50M220.70M
Cash Flow
Free Cash Flow18.00M23.00M76.70M41.50M64.40M48.20M
Operating Cash Flow105.60M120.30M163.80M94.40M114.40M104.00M
Investing Cash Flow-26.20M-34.40M-133.20M-26.60M-2.90M-28.20M
Financing Cash Flow-89.30M-90.50M-121.70M-60.10M-33.90M-66.30M

SGL Carbon Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.70
Price Trends
50DMA
3.62
Positive
100DMA
3.66
Positive
200DMA
3.95
Negative
Market Momentum
MACD
0.05
Negative
RSI
52.10
Neutral
STOCH
62.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SGL, the sentiment is Neutral. The current price of 3.7 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.62, and below the 200-day MA of 3.95, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 62.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:SGL.

SGL Carbon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
€452.38M6.85-16.90%-8.34%-357.87%
44
Neutral
C$980.54M-6.82-13.68%1.81%17.37%-32.98%
€11.15B-6.00%
€2.66B93.320.00%1.01%
€1.27B32.082.02%0.47%
$2.64B-3.92%0.01%
$4.12B15.845.37%0.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:SGL
SGL Carbon
3.70
-2.40
-39.34%
GB:0RBE
Covestro
60.50
5.86
10.72%
GB:0Q2N
K+S Aktiengesellschaft
14.88
3.19
27.29%
GB:0R8P
Siltronic
42.00
-32.03
-43.27%
LNXSF
LANXESS
30.15
3.28
12.21%
WKCMF
Wacker Chemie AG
82.74
-15.58
-15.85%
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.Date of analysis: Jul 17, 2025