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Salzgitter AG (DE:SZG)
:SZG

Salzgitter (SZG) AI Stock Analysis

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DE

Salzgitter

(LSE:SZG)

Rating:56Neutral
Price Target:
€22.50
▲(0.36%Upside)
Salzgitter's overall score is impacted primarily by its challenging financial performance, with operational losses and cash flow issues being significant concerns. While technical indicators show some positive momentum, the weak valuation metrics further weigh down the score.

Salzgitter (SZG) vs. iShares MSCI Germany ETF (EWG)

Salzgitter Business Overview & Revenue Model

Company DescriptionSalzgitter 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 MoneySalzgitter AG generates revenue primarily through the production and sale of steel products. The company's Steel Production division is a significant revenue stream, providing raw steel materials to various sectors. The Steel Processing division adds value by transforming raw steel into specialized products such as tubes, sections, and sheets tailored to customer specifications. The Trading division enhances revenue by distributing a wide array of steel and related products across global markets. Additionally, Salzgitter AG benefits from strategic partnerships and investments in technology and innovation, which help optimize production efficiency and open new revenue avenues. The company's focus on sustainability and technological advancements also positions it to capitalize on growing demand for eco-friendly and high-tech steel solutions.

Salzgitter Financial Statement Overview

Summary
Salzgitter faces significant financial challenges with operational losses reflected in a negative EBIT margin of -3.16% and a net profit margin of -3.52%. While the equity ratio is strong at 42.44%, indicating a solid equity base, the negative free cash flow of -608.2 million EUR is a major concern, limiting the company's ability to reinvest or repay debt.
Income Statement
45
Neutral
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
55
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.01B10.79B12.55B9.77B7.09B
Gross Profit448.40M3.37B4.16B3.54B2.35B
EBITDA478.60M624.00M1.44B1.12B94.80M
Net Income-352.20M200.10M1.08B581.10M-273.90M
Balance Sheet
Total Assets10.47B10.50B11.10B10.25B8.24B
Cash, Cash Equivalents and Short-Term Investments1.00B939.70M988.40M791.50M621.40M
Total Debt1.76B1.30B1.70B1.51B1.23B
Total Liabilities6.02B5.67B6.25B6.90B5.56B
Stockholders Equity4.44B4.83B4.84B3.35B2.67B
Cash Flow
Free Cash Flow-659.90M140.20M154.00M-14.00M-356.10M
Operating Cash Flow308.80M892.00M596.50M329.40M18.30M
Investing Cash Flow-677.40M-430.50M-367.70M-366.60M-234.20M
Financing Cash Flow331.90M-498.30M11.30M146.30M151.00M

Salzgitter Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.42
Price Trends
50DMA
20.92
Positive
100DMA
21.70
Positive
200DMA
18.90
Positive
Market Momentum
MACD
0.14
Negative
RSI
62.31
Neutral
STOCH
72.42
Neutral
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 22.42 is above the 20-day moving average (MA) of 20.13, above the 50-day MA of 20.92, and above the 200-day MA of 18.90, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 72.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SZG.

Salzgitter Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEKRN
75
Outperform
€4.44B15.4715.25%1.59%14.42%26.41%
DEKRN
75
Outperform
€4.44B15.4715.25%1.59%14.42%26.41%
67
Neutral
€8.08B19.966.46%2.73%1.89%-38.57%
DEGIL
63
Neutral
€3.62B46.0812.25%2.24%-10.82%-48.82%
DEGIL
63
Neutral
€3.62B46.0812.25%2.24%-10.82%-48.82%
DESZG
56
Neutral
€1.35B-8.65%0.96%-7.84%-642.49%
DETKA
50
Neutral
€5.73B-9.83%1.41%-4.07%56.41%
DETKA
50
Neutral
€5.73B-9.83%1.41%-4.07%56.41%
DEKCO
48
Neutral
€623.44M-10.39%2.75%-0.34%19.96%
DEKCO
48
Neutral
€623.44M-10.39%2.75%-0.34%19.96%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:SZG
Salzgitter
22.42
4.68
26.35%
DE:TKA
thyssenkrupp
9.87
5.99
154.59%
DE:TKA
thyssenkrupp
9.87
5.99
154.59%
DE:KCO
Kloeckner & Co. SE
6.27
1.05
20.18%
DE:KCO
Kloeckner & Co. SE
6.27
1.05
20.18%
DE:KRN
Krones AG
138.20
17.06
14.08%
DE:KRN
Krones AG
138.20
17.06
14.08%
DE:GIL
DMG MORI AKTIENGESELLSCHAFT
45.90
3.17
7.42%
DE:GIL
DMG MORI AKTIENGESELLSCHAFT
45.90
3.17
7.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025