SGL Carbon (SGL) AI Stock Analysis

• Market Cap: €353.95M
• Dividend Yield: N/A
• Average Volume (3M): 200.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• 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: €3.62
• Price Target Upside: 23.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: €3.00 ▲(2.74% Upside)

SGL Carbon's overall stock score is primarily impacted by weak financial performance and poor valuation metrics. The technical analysis indicates bearish momentum, further contributing to the low score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Growth

Positive cash flow growth indicates that SGL Carbon is improving its ability to generate cash from operations, which can be reinvested into the business or used to strengthen the balance sheet, providing a buffer against financial challenges.

Debt Management

A lower debt-to-equity ratio suggests that SGL Carbon has been effectively managing its debt levels, which enhances financial stability and reduces risk, allowing for better financial flexibility in strategic investments.

Market Position

SGL Carbon's focus on high-performance materials for automotive, aerospace, and energy sectors positions it well in growing markets, supporting long-term demand for its innovative products and enhancing its competitive advantage.

Negative Factors

Profitability Challenges

SGL Carbon's negative profitability and declining revenue growth indicate operational inefficiencies and market challenges, which could hinder its ability to invest in growth initiatives and improve shareholder returns.

Operational Efficiency

Negative EBIT and EBITDA margins suggest that SGL Carbon is struggling with cost management and operational efficiency, which could impact its ability to compete effectively and maintain margins in the long term.

Return on Equity

A negative return on equity indicates that SGL Carbon is not generating sufficient profits from its equity base, which can deter investment and limit the company's ability to finance growth through retained earnings.

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, with a negative net profit margin and declining revenue. The balance sheet shows moderate financial health with manageable debt, but profitability remains a concern. Cash flow is slightly positive, indicating some operational cash generation, but overall financial performance is weak.

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	189.60M	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: Neutral
• Last Price: 2.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.92 is above the 20-day moving average (MA) of 2.77, below the 50-day MA of 3.04, and below the 200-day MA of 3.47, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 96.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:SGL.

SGL Carbon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WCH	58 Neutral	$3.34B	13.86	―	3.71%	-10.63%	-23.15%
1COV	52 Neutral	€10.95B	-29.67	-7.19%	―	-5.27%	-75.47%
SDF	49 Neutral	€1.98B	-1.14	-32.36%	1.28%	-2.41%	-26533.42%
WAF	45 Neutral	€1.53B	-56.63	-1.40%	0.41%	-5.17%	-128.32%
LXS	45 Neutral	€1.50B	―	-5.69%	0.60%	-6.82%	71.94%
SGL	44 Neutral	€353.95M	-2.51	-29.56%	―	-14.48%	-340.02%