Salzgitter (SZG) AI Stock Analysis

• Market Cap: €1.21B
• Dividend Yield: 1%
• Average Volume (3M): 83.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -7.84%
• EPS Growth: -642.49%
• Country: DE
• Employees: 23,868
• Sector: Industrials
• Sector Strength: 88
• Industry: Steel
• EPS (TTM): -0.48
• Shares Outstanding: 60,097,000
• 10 Day Avg. Volume: 62,785
• 30 Day Avg. Volume: 83,574
• PEG Ratio: 0.02
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.02
• 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: €24.34
• Price Target Upside: 22.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 45 Neutral
• Price Target: €19.50 ▼(-2.01%Downside)

Salzgitter's overall stock score is driven by substantial financial challenges, including negative cash flow and earnings losses. Bearish technical indicators and a negative valuation further contribute to the low score, indicating considerable risks for investors. The strong equity ratio is a positive factor but is overshadowed by the company's operational and financial difficulties.

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 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.01B	10.79B	12.55B	9.77B	7.09B
	Gross Profit
448.40M	3.37B	4.16B	3.54B	2.35B
	EBIT
-147.40M	1.33B	1.28B	592.90M	-175.30M
	EBITDA
478.60M	624.00M	1.44B	1.12B	94.80M
	Net Income Common Stockholders
-352.20M	200.10M	1.08B	581.10M	-273.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.00B	939.70M	988.40M	791.50M	621.40M
	Total Assets
10.47B	10.50B	11.10B	10.25B	8.24B
	Total Debt
1.76B	1.30B	1.70B	1.51B	1.23B
	Net Debt
753.30M	361.10M	709.90M	772.90M	609.90M
	Total Liabilities
6.02B	5.67B	6.25B	6.90B	5.56B
	Stockholders Equity
4.44B	4.83B	4.84B	3.35B	2.67B
Cash Flow		Free Cash Flow
-659.90M	140.20M	154.00M	-14.00M	-356.10M
	Operating Cash Flow
308.80M	892.00M	596.50M	329.40M	18.30M
	Investing Cash Flow
-677.40M	-430.50M	-367.70M	-366.60M	-234.20M
	Financing Cash Flow
331.90M	-498.30M	11.30M	146.30M	151.00M

Salzgitter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.90
• 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 19.9 is below the 20-day moving average (MA) of 21.27, below the 50-day MA of 21.80, and above the 200-day MA of 18.42, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 10.55 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
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
SZG	45 Neutral	€1.21B	―	-8.65%	1.00%	-7.84%	-642.49%
0OP0		€3.61B	46.38	12.25%	2.23%	―	―
0KVR		€645.38M	―	-10.39%	3.12%	―	―
0LQ4		€4.47B	15.71	15.25%	1.82%	―	―
0O1C		€5.23B	―	-9.83%	1.78%	―	―
EIS		€304.48M	36.59	8.03%	2.89%	―	―