Salzgitter (SZG) AI Stock Analysis

• Market Cap: €1.47B
• Dividend Yield: 0.82%
• Average Volume (3M): 297.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -7.84%
• EPS Growth: -642.49%
• Country: DE
• Employees: 23,868
• Sector: Industrials
• Sector Strength: 94
• Industry: Steel
• EPS (TTM): -0.57
• Shares Outstanding: 60,097,000
• 10 Day Avg. Volume: 474,007
• 30 Day Avg. Volume: 297,783
• PEG Ratio: 0.26
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.61
• 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: €25.09
• Price Target Upside: 2.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 45 Neutral
• Price Target: €22.00 ▼(-10.06%Downside)

Salzgitter's overall stock score is primarily impacted by weak financial performance due to declining revenues, negative profitability, and cash flow challenges. Technical analysis provides a neutral outlook, while poor valuation metrics further detract from the score. The lack of earnings call and corporate event data leaves these areas unaddressed.

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 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: Positive
• Last Price: 24.46
• 50DMA: Positive
• 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 24.46 is above the 20-day moving average (MA) of 24.11, above the 50-day MA of 22.01, and above the 200-day MA of 19.64, indicating a bullish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.83 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
Sector *	67 Neutral	€8.25B	19.94	6.46%	2.84%	1.83%	-39.96%
SZG	45 Neutral	€1.47B	―	-8.65%	0.82%	-7.84%	-642.49%
0OP0	―	€3.65B	46.58	12.25%	2.25%	―	―
0KVR	―	€671.32M	―	-10.09%	2.98%	―	―
0LQ4	―	€4.35B	15.23	15.25%	1.89%	―	―
0O1C	―	€6.56B	―	-9.83%	1.42%	―	―
EIS	―	€283.36M	34.05	8.03%	3.11%	―	―