Salzgitter (SZG) AI Stock Analysis

• Market Cap: €1.32B
• Dividend Yield: 2.08%
• Average Volume (3M): 93.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -7.22%
• EPS Growth: -276.01%
• Country: DE
• Employees: 23,868
• Sector: Industrials
• Sector Strength: 82
• Industry: Steel
• EPS (TTM): -2.77
• Shares Outstanding: 60,097,000
• 10 Day Avg. Volume: 54,154
• 30 Day Avg. Volume: 93,751
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: €24.43
• Price Target Upside: 11.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Salzgitter's overall stock score is driven by significant financial challenges, including operational losses and negative cash flow, which weigh heavily on its financial performance score. Technical indicators suggest short-term bearish momentum, while the long-term outlook shows some resilience. Despite these challenges, the company maintains a stable equity ratio and manageable leverage. The valuation appears low, but this is primarily due to negative earnings, which represents a risk for investors. The lack of earnings call and corporate events data means these areas did not influence the score.

Salzgitter Business Overview & Revenue Model

Company Description

Salzgitter AG (SZG) is one of Germany's leading steel and technology companies, with a diverse portfolio that includes steel production, processing, and distribution. The company operates through various divisions, notably Steel Production, Steel Processing, and Trading, which cater to a wide range of industries including automotive, construction, and engineering. Salzgitter AG is committed to innovation and sustainability, continually enhancing its product offerings and production processes to meet evolving market demands.

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's financial performance is under pressure, with operational losses and negative cash flows. The income statement shows a negative EBIT and net income, reflecting operational challenges. The balance sheet is moderately stable with a manageable debt-to-equity ratio, but negative ROE is concerning. Cash flow issues are significant with negative free cash flow, indicating limitations in reinvestment and debt repayment.

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
10.79B	12.55B	9.77B	7.09B	8.55B
	Gross Profit
3.37B	4.16B	3.54B	2.35B	2.94B
	EBIT
1.33B	1.28B	592.90M	-175.30M	-41.20M
	EBITDA
624.00M	1.44B	1.12B	94.80M	368.40M
	Net Income Common Stockholders
200.10M	1.08B	581.10M	-273.90M	-237.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
939.70M	988.40M	791.50M	621.40M	751.40M
	Total Assets
10.50B	11.10B	10.25B	8.24B	8.62B
	Total Debt
1.30B	1.70B	1.51B	1.23B	1.06B
	Net Debt
361.10M	709.90M	772.90M	609.90M	363.60M
	Total Liabilities
5.67B	6.25B	6.90B	5.56B	5.68B
	Stockholders Equity
4.83B	4.84B	3.35B	2.67B	2.93B
Cash Flow		Free Cash Flow
140.20M	154.00M	-14.00M	-356.10M	-193.60M
	Operating Cash Flow
892.00M	596.50M	329.40M	18.30M	250.70M
	Investing Cash Flow
-430.50M	-367.70M	-366.60M	-234.20M	-304.80M
	Financing Cash Flow
-498.30M	11.30M	146.30M	151.00M	194.70M

Salzgitter Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 21.88 is below the 20-day moving average (MA) of 22.22, below the 50-day MA of 23.19, and above the 200-day MA of 17.92, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 22.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIN	75 Outperform	$214.16B	33.02	17.20%	1.25%	0.78%	6.75%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%
BAS	59 Neutral	€39.62B	53.61	2.02%	8.08%	-2.04%	2258.97%
SGL	55 Neutral	€472.55M	6.85	-13.84%	―	-5.76%	-295.85%
TKA	55 Neutral	€6.38B	―	-12.20%	1.46%	-5.47%	49.51%
KCO	51 Neutral	€692.27M	―	-10.39%	3.06%	-0.34%	19.96%
SZG	43 Neutral	€1.32B	―	-7.60%	2.08%	-7.22%	-276.01%