SGL Carbon (SGL) AI Stock Analysis

• Market Cap: €410.81M
• Dividend Yield: N/A
• Average Volume (3M): 134.26K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.22
• Revenue Growth: -11.72%
• EPS Growth: -275.49%
• Country: DE
• Employees: 4,277
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals
• EPS (TTM): -0.21
• Shares Outstanding: 122,341,480
• 10 Day Avg. Volume: 144,376
• 30 Day Avg. Volume: 134,265
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €3.90
• Price Target Upside: 16.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: €3.50 ▲(4.17% Upside)

The overall stock score of 49 reflects significant financial challenges marked by declining revenues and negative profitability. Neutral technical indicators and poor valuation metrics further weigh on the score. The lack of earnings call and corporate events data limits insights into potential recovery strategies.

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 the unchanged EBITDA guidance.

Valuation

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

Negative Factors

Impairment

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

Market Environment

Comments on 2025 point to a persistently difficult market environment, particularly for semiconductor and automotive applications.

Sales Decline

SGL Carbon has revised its sales guidance for 2025, now expecting a year-on-year decline in sales of between 10-15%.

SGL Carbon Business Overview & Revenue Model

Company Description

SGL Carbon (SGL) is a leading global manufacturer and supplier of carbon-based products and materials, focusing on the sectors of automotive, aerospace, energy, and electronics. The company specializes in the production of high-performance materials including carbon fibers, graphite products, and advanced composite materials. With a commitment to innovation and sustainability, SGL aims to enhance efficiency and performance in various applications, making it a key player in the transition towards lightweight and resource-efficient solutions.

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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	988.10M	1.03B	1.09B	1.14B	1.01B	919.40M
Gross Profit	219.40M	228.90M	235.60M	253.60M	210.30M	180.30M
EBITDA	23.90M	51.50M	121.50M	162.40M	158.20M	-27.40M
Net Income	-99.00M	-80.30M	41.00M	126.90M	75.40M	-130.10M
Balance Sheet
Total Assets	1.32B	1.34B	1.47B	1.48B	1.38B	1.26B
Cash, Cash Equivalents and Short-Term Investments	145.20M	148.20M	199.40M	229.70M	222.20M	142.50M
Total Debt	231.70M	256.10M	308.80M	397.30M	459.30M	452.50M
Total Liabilities	766.80M	772.30M	857.70M	901.70M	995.50M	1.03B
Stockholders Equity	546.20M	554.90M	605.30M	569.30M	371.50M	220.70M
Cash Flow
Free Cash Flow	18.00M	23.00M	76.70M	41.50M	64.40M	48.20M
Operating Cash Flow	105.60M	120.30M	163.80M	94.40M	114.40M	104.00M
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: Negative
• Last Price: 3.36
• 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 3.36 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 3.57, and below the 200-day MA of 3.82, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.57 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
WCH	64 Neutral	€3.27B	13.57	5.37%	3.80%	-10.63%	-23.15%
Sector *	61 Neutral	€6.91B	8.65	3.65%	2.61%	-3.10%	-864.25%
LXS	56 Neutral	€2.07B	―	-3.00%	0.41%	-0.97%	-134.96%
SGL	49 Neutral	€410.81M	6.85	-24.49%	―	-11.72%	-275.49%
1COV	48 Neutral	€11.17B	―	-5.90%	―	-1.98%	―
SDF	46 Neutral	€2.27B	91.49	-32.36%	1.18%	-2.41%	-26533.42%
WAF	46 Neutral	€1.07B	36.55	1.51%	0.56%	-0.55%	-73.49%