Salzgitter (SZG) AI Stock Analysis

• Market Cap: €1.31B
• Dividend Yield: 0.92%
• Average Volume (3M): 348.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -7.50%
• EPS Growth: -3837.01%
• Country: DE
• Employees: 23,868
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): -1.02
• Shares Outstanding: 60,097,000
• 10 Day Avg. Volume: 172,130
• 30 Day Avg. Volume: 348,124
• 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: €24.60
• Price Target Upside: 13.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 47 Neutral
• Price Target: €22.00 ▲(1.48% Upside)

Salzgitter's overall stock score reflects significant financial challenges, including declining revenues and profitability, negative cash flow, and a weakening balance sheet. Technical indicators suggest bearish momentum, while valuation metrics highlight concerns with a negative P/E ratio and low dividend yield. These factors collectively contribute to a cautious outlook for the stock.

Salzgitter Business Overview & Revenue Model

Company Description

Salzgitter AG (SZG) is a prominent German steel and technology company based in Salzgitter, Lower Saxony. The company operates in various sectors, including steel production, processing, and trading, as well as offering services in engineering and mechanical engineering. Salzgitter's core products encompass a wide range of steel products, including flat and long products, tubes, and special steels for construction and automotive industries, along with a focus on sustainable solutions through its involvement in recycling and innovative technologies.

How the Company Makes Money

Salzgitter AG generates revenue primarily through the production and sale of steel products, which constitutes the bulk of its income. The company's revenue model is based on the manufacturing of various steel grades and products tailored to meet the demands of different industries, including automotive, construction, and energy. Key revenue streams include the sale of flat and long steel products, tubes, and specialty steels. Additionally, Salzgitter engages in trading activities, providing a platform for both domestic and international steel transactions. The company also benefits from strategic partnerships with automotive manufacturers and construction firms, which help secure long-term contracts and foster customer loyalty. Furthermore, the focus on sustainability and recycling initiatives positions Salzgitter to capture emerging markets and trends, contributing to its overall profitability.

Salzgitter Financial Statement Overview

Summary

Salzgitter faces significant financial challenges with negative EBIT and net income, highlighting operational losses. Despite a stable equity ratio and manageable debt, profitability and cash flow generation are concerning, impacting overall financial health.

Income Statement

Salzgitter's TTM income statement shows a challenging financial position with negative EBIT and net income, indicating operational losses. The gross profit margin of 18.23% is relatively stable; however, the company experienced a revenue decline of 7.20% from the previous year, impacting profitability. The negative EBIT margin of -3.16% and net profit margin of -3.52% highlight the pressure on the company's earnings in the current period.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.40, suggesting manageable leverage. The equity ratio is a strong 42.44%, indicating a solid equity base relative to total assets. However, the return on equity (ROE) is negative due to the net loss, which is a concern for profitability and investor returns.

Cash Flow

Salzgitter's cash flow statement shows significant weaknesses, with a negative free cash flow of -608.2 million EUR. The operating cash flow to net income ratio is negative due to the net loss, and the free cash flow to net income ratio also reflects financial strain. The inability to generate positive free cash flow limits reinvestment and debt repayment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.66B	10.01B	10.79B	12.55B	9.77B	7.09B
Gross Profit	2.52B	448.40M	3.37B	4.16B	3.54B	2.35B
EBITDA	429.30M	-68.60M	624.00M	1.44B	1.12B	94.80M
Net Income	-400.90M	-352.20M	200.10M	1.08B	581.10M	-273.90M
Balance Sheet
Total Assets	10.25B	10.47B	10.50B	11.10B	10.25B	8.24B
Cash, Cash Equivalents and Short-Term Investments	892.00M	1.00B	939.70M	988.40M	791.50M	621.40M
Total Debt	1.70B	1.76B	1.30B	1.70B	1.51B	1.23B
Total Liabilities	5.80B	6.02B	5.67B	6.25B	6.90B	5.56B
Stockholders Equity	4.44B	4.44B	4.83B	4.84B	3.35B	2.67B
Cash Flow
Free Cash Flow	-557.30M	-659.90M	140.20M	154.00M	-14.00M	-356.10M
Operating Cash Flow	458.30M	308.80M	892.00M	596.50M	329.40M	18.30M
Investing Cash Flow	-591.80M	-677.40M	-430.50M	-367.70M	-366.60M	-234.20M
Financing Cash Flow	250.90M	331.90M	-498.30M	11.30M	146.30M	151.00M

Salzgitter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SZG, the sentiment is Negative. The current price of 21.68 is below the 20-day moving average (MA) of 23.02, below the 50-day MA of 22.40, and above the 200-day MA of 20.32, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 12.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SZG.

Salzgitter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIL	69 Neutral	€3.65B	29.00	8.88%	2.22%	-13.98%	45.95%
KRN	67 Neutral	€4.10B	14.27	15.37%	2.00%	10.25%	20.72%
KCO	51 Neutral	€596.51M	―	-9.12%	3.34%	0.38%	40.94%
SZG	47 Neutral	€1.31B	―	-9.21%	0.92%	-7.50%	-3837.01%
Sector *	44 Neutral	C$930.37M	-8.96	-0.23%	2.69%	23.24%	-42.45%
TKA	43 Neutral	€5.16B	―	-9.83%	1.75%	-4.07%	56.41%