Salzgitter (SZG) AI Stock Analysis

• Market Cap: €1.67B
• Dividend Yield: 0.57%
• Average Volume (3M): 283.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -9.52%
• EPS Growth: -4.21%
• Country: DE
• Employees: 23,868
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.75
• Shares Outstanding: 60,097,000
• 10 Day Avg. Volume: 395,583
• 30 Day Avg. Volume: 283,498
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.30
• 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: €33.56
• Price Target Upside: -4.50% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €35.00 ▼(-0.40% Downside)

Salzgitter's overall stock score is primarily influenced by its challenging financial performance and valuation concerns. While technical analysis shows bullish momentum, the financial difficulties and negative valuation metrics weigh heavily on the score.

Positive Factors

Sustainability Focus

Salzgitter's emphasis on sustainability and recycling positions it to capture emerging markets and trends, enhancing long-term profitability and market relevance.

Strategic Partnerships

Long-term contracts with key industry players foster customer loyalty and revenue stability, providing a competitive edge in the steel market.

Stable Capital Structure

A stable capital structure with a significant portion of assets financed by equity ensures financial resilience and supports long-term strategic investments.

Negative Factors

Declining Revenue

A decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term financial performance.

Negative Profit Margins

Sustained negative profit margins suggest ongoing profitability challenges, which may hinder the company's ability to reinvest and grow.

Cash Flow Challenges

Significant cash flow challenges indicate potential liquidity issues, limiting financial flexibility and the ability to fund operations or strategic initiatives.

Salzgitter Business Overview & Revenue Model

Company Description

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through five segments: Strip Steel, Plate/Section Steel, Mannesmann, Trading, and Technology. The Strip Steel segment manufactures branded and special steels, such as hot-rolled strip steel and steel sheets, sections, tailored blanks, and components for the construction industry. The Plate/Section Steel segment produces various high-grade heavy plates for engineering, shipbuilding, and mechanical engineering, as well as trades in scrap. The Mannesmann segment is involved in the manufacture of line pipes, HFI-welded tubes, precision and stainless-steel tubes, and spiral-welded and longitudinal-welded large-diameter pipes; and seamless and welded tubes for the energy, automotive, and mechanical engineering sectors. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. Salzgitter AG was founded in 1858 and is headquartered in Salzgitter, Germany.

How the Company Makes Money

Salzgitter generates revenue primarily through the sale of steel products and related services. Its key revenue streams include the production of flat steel, long steel, and specialty steels, which cater to various industries such as automotive, construction, and mechanical engineering. The company also earns income from its engineering and plant construction services, providing customized solutions to clients. Significant partnerships with automotive manufacturers and construction firms contribute to stable demand for Salzgitter's products. Additionally, the company invests in innovations aimed at reducing carbon emissions in steel production, which may open up new revenue opportunities in the growing market for sustainable materials.

Salzgitter Financial Statement Overview

Summary

Salzgitter's financial performance is under pressure with declining revenue and profitability. The income statement shows a negative net profit margin and a low EBITDA margin. The balance sheet is stable with moderate leverage, but negative return on equity and cash flow challenges are concerning.

Income Statement

Salzgitter's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a negative net profit margin of -4.15% and a gross profit margin of 26.09%, indicating pressure on profitability. The revenue growth rate is negative, reflecting a contraction in sales. Despite these challenges, the company has managed to maintain a positive EBITDA margin, albeit at a low level of 4.44%.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.38, suggesting a manageable level of leverage. However, the return on equity is negative at -8.79%, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio stands at 42.17%, reflecting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis indicates significant challenges, with negative free cash flow growth and a free cash flow to net income ratio of -1.22, highlighting cash flow issues. The operating cash flow to net income ratio is 0.14, suggesting limited cash generation relative to net income. These metrics point to potential liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.43B	10.01B	10.79B	12.55B	9.77B	7.09B
Gross Profit	3.05B	448.40M	3.37B	4.16B	3.54B	2.35B
EBITDA	368.80M	-68.60M	624.00M	1.44B	1.12B	190.40M
Net Income	-421.20M	-352.20M	200.10M	1.08B	581.10M	-273.90M
Balance Sheet
Total Assets	10.31B	10.47B	10.50B	11.10B	10.25B	8.24B
Cash, Cash Equivalents and Short-Term Investments	765.20M	1.00B	939.70M	988.40M	791.50M	621.40M
Total Debt	1.72B	1.76B	1.30B	1.70B	1.51B	1.23B
Total Liabilities	5.96B	6.02B	5.67B	6.25B	6.90B	5.56B
Stockholders Equity	4.35B	4.44B	4.83B	4.84B	3.35B	2.67B
Cash Flow
Free Cash Flow	-511.30M	-659.90M	140.20M	154.00M	-14.00M	-356.10M
Operating Cash Flow	626.70M	408.40M	892.00M	596.50M	329.40M	18.30M
Investing Cash Flow	-656.50M	-677.40M	-430.50M	-367.70M	-366.60M	-234.20M
Financing Cash Flow	239.30M	331.90M	-498.30M	11.30M	146.30M	151.00M

Salzgitter Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SZG, the sentiment is Positive. The current price of 35.14 is above the 20-day moving average (MA) of 30.36, above the 50-day MA of 29.59, and above the 200-day MA of 24.18, indicating a bullish trend. The MACD of 1.66 indicates Negative momentum. The RSI at 70.12 is Negative, neither overbought nor oversold. The STOCH value of 90.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SZG.

Salzgitter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRN	72 Outperform	€3.82B	13.28	14.99%	2.01%	8.15%	16.17%
GIL	68 Neutral	€3.67B	29.19	8.88%	2.19%	-13.98%	45.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SZG	55 Neutral	€1.67B	-3.57	-4.47%	0.57%	-9.52%	-4.21%
TKA	51 Neutral	€6.07B	-4.48	-12.35%	1.27%	-4.77%	49.72%
KCO	46 Neutral	€535.66M	-3.63	-8.11%	3.31%	4.41%	50.71%