SGL Carbon (SGL) AI Stock Analysis

• Market Cap: €394.91M
• Dividend Yield: N/A
• Average Volume (3M): 154.95K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.19
• Revenue Growth: -11.72%
• EPS Growth: -275.49%
• Country: DE
• Employees: 4,277
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.21
• Shares Outstanding: 122,341,480
• 10 Day Avg. Volume: 245,635
• 30 Day Avg. Volume: 154,952
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €3.70
• Price Target Upside: 14.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: €3.00 ▼(-7.12% Downside)

SGL Carbon's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant profitability challenges, and technical indicators point to bearish momentum. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, further weighing down the score.

Positive Factors

Cash Flow Growth

Positive cash flow growth indicates SGL Carbon's ability to generate cash from operations, supporting reinvestment and debt management.

Debt Management

Improved debt-to-equity ratio reflects better financial management, enhancing SGL Carbon's financial stability and flexibility.

Product Innovation

SGL Carbon's commitment to innovation in carbon-based products positions it well in growing sectors like automotive and aerospace.

Negative Factors

Profitability Challenges

SGL Carbon's negative profit margin and declining revenue indicate operational inefficiencies that could hinder long-term profitability.

Operational Efficiency

Negative operating margins suggest inefficiencies in cost management, which could impact SGL Carbon's ability to improve profitability.

Revenue Decline

Declining revenue growth may affect SGL Carbon's market position and ability to compete effectively in its industry.

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 through the sale of its high-performance carbon-based products across several industries. Key revenue streams include the manufacture and sale of carbon fibers used in automotive and aerospace applications, graphite electrodes for electric arc furnaces in the steel industry, and specialty graphite products for various industrial applications. The company also engages in partnerships and collaborations with major players in the automotive and energy sectors, which contribute to its earnings by providing steady demand for its innovative materials. Additionally, SGL benefits from long-term contracts with customers, ensuring a consistent revenue flow and enhancing its market position.

SGL Carbon Financial Statement Overview

Summary

SGL Carbon faces challenges in profitability and revenue growth, as reflected in its income statement. The balance sheet shows a moderate financial position with manageable debt levels, but profitability remains a concern. The cash flow statement provides some positive insights, with growth in free cash flow, but the company needs to improve its operational efficiency and profitability to enhance its financial standing.

Income Statement

SGL Carbon's income statement reveals challenges with profitability and revenue growth. The TTM data shows a negative net profit margin of -10.02% and a declining revenue growth rate of -4.71%. The gross profit margin remains relatively stable at 22.20%, but the EBIT and EBITDA margins are negative, indicating operational inefficiencies. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet indicates a moderate financial position with a debt-to-equity ratio of 0.42, which is an improvement from previous years. However, the return on equity is negative at -16.55%, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio stands at 39.75%, suggesting a balanced approach to financing through equity and debt.

Cash Flow

SGL Carbon's cash flow statement shows some positive signs, with a free cash flow growth rate of 3.89% in the TTM period. The operating cash flow to net income ratio is 0.42, indicating that the company generates sufficient cash from operations relative to its net income. However, the free cash flow to net income ratio is relatively low at 0.17, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	941.60M	1.03B	1.09B	1.14B	1.01B	919.40M
Gross Profit	206.20M	228.90M	235.60M	253.60M	210.30M	180.30M
EBITDA	-8.50M	124.60M	121.50M	162.40M	158.20M	-27.40M
Net Income	-141.10M	-80.30M	41.00M	126.90M	75.40M	-130.10M
Balance Sheet
Total Assets	1.25B	1.34B	1.47B	1.48B	1.38B	1.26B
Cash, Cash Equivalents and Short-Term Investments	139.20M	148.20M	199.40M	229.70M	222.20M	142.50M
Total Debt	233.20M	256.10M	308.80M	397.30M	459.30M	452.50M
Total Liabilities	743.70M	772.30M	857.70M	901.70M	995.50M	1.03B
Stockholders Equity	497.10M	554.90M	605.30M	569.30M	371.50M	220.70M
Cash Flow
Free Cash Flow	18.70M	23.00M	76.70M	41.50M	64.40M	48.20M
Operating Cash Flow	98.10M	120.30M	163.80M	94.40M	114.40M	104.00M
Investing Cash Flow	-17.30M	-34.40M	-133.20M	-26.60M	-2.90M	-28.20M
Financing Cash Flow	-63.10M	-90.50M	-121.70M	-60.10M	-33.90M	-66.30M

SGL Carbon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 3.23 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.39, and below the 200-day MA of 3.66, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 30.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SGL.

SGL Carbon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAF	54 Neutral	€1.34B	45.43	1.52%	0.45%	-0.55%	-73.49%
WCH	52 Neutral	€3.19B	13.25	3.13%	3.89%	-10.63%	-23.15%
1COV	48 Neutral	€10.73B	-29.06	-6.14%	―	-1.98%	―
SGL	46 Neutral	€394.91M	6.85	-24.49%	―	-11.72%	-275.49%
LXS	46 Neutral	€1.88B	-11.42	-4.13%	0.46%	-2.75%	83.47%
SDF	45 Neutral	€2.11B	-1.22	-40.20%	1.27%	-2.41%	-26533.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%