SGL Carbon (SGL) AI Stock Analysis

• Market Cap: €438.32M
• Dividend Yield: N/A
• Average Volume (3M): 99.60K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.16
• Revenue Growth: -8.34%
• EPS Growth: -357.87%
• Country: DE
• Employees: 4,277
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): -0.05
• Shares Outstanding: 122,341,480
• 10 Day Avg. Volume: 97,686
• 30 Day Avg. Volume: 99,599
• 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: €4.17
• Price Target Upside: 16.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: €3.50 ▼(-2.23%Downside)

The overall stock score reflects significant financial performance challenges, with declining revenue and profitability impacting the score most. The technical outlook is bearish, and negative valuation metrics further weigh down the score. Absence of earnings call insights and corporate events prevents any positive offset.

Positive Factors

Business Ventures

The valuation does not seem to reflect the value of the Brembo ceramic brake disk joint venture, indicating potential undervaluation.

Market Positioning

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

Business Restructuring

SGL announced a €60-80m impairment at Carbon Fibers in Q4.

Financial Guidance

The company's EBITDA guidance suggests a decline, with a midpoint implying a -16% year-over-year decrease.

Market Challenges

SGL Carbon faces a challenging financial year ahead due to headwinds in auto and semiconductor applications.

SGL Carbon Business Overview & Revenue Model

Company Description

SGL 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 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
EBITDA	51.50M	121.50M	162.40M	158.20M	-27.40M
Net Income	-80.30M	41.00M	126.90M	75.40M	-130.10M
Balance Sheet
Total Assets	1.34B	1.47B	1.48B	1.38B	1.26B
Cash, Cash Equivalents and Short-Term Investments	148.20M	199.40M	229.70M	222.20M	142.50M
Total Debt	256.10M	308.80M	397.30M	459.30M	452.50M
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: 3.58
• 50DMA: Negative
• 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 3.58 is above the 20-day moving average (MA) of 3.56, below the 50-day MA of 3.62, and below the 200-day MA of 4.07, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 72.29 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	68 Neutral	$3.28B	13.63	5.37%	3.26%	-10.63%	-23.15%
SDF	61 Neutral	€2.84B	91.49	0.00%	0.96%	-1.06%	―
Sector *	60 Neutral	€6.50B	8.50	0.45%	1.69%	-2.39%	100.22%
WAF	59 Neutral	€1.27B	31.92	2.02%	0.47%	-2.61%	-72.43%
1COV	57 Neutral	€11.21B	―	-6.00%	―	0.01%	-88.69%
LXS	56 Neutral	$2.22B	―	-3.92%	0.34%	-5.18%	-139.96%
SGL	49 Neutral	€438.32M	6.85	-16.90%	―	-8.34%	-357.87%