GrafTech International (EAF) AI Stock Analysis

• Market Cap: $327.85M
• Dividend Yield: N/A
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -10.79%
• EPS Growth: 26.22%
• Country: US
• Employees: 1,072
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.16
• Shares Outstanding: 258,151,430
• 10 Day Avg. Volume: 2,306,749
• 30 Day Avg. Volume: 3,780,600
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.61
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: -49.01
• Enterprise Value/Ebitda: -31.89
• 1Y Price Target: $1.22
• Price Target Upside: -3.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-21.26% Downside)

GrafTech International's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, negative profitability, and high leverage. While there are some positive signs from recent earnings call highlights, such as sales volume growth and cost reductions, these are overshadowed by ongoing financial challenges and valuation concerns.

Positive Factors

Financial Health

Total available liquidity currently stands at ~$464m, which remains sufficient to bridge EAF through the challenging environment.

Partnership Opportunities

Graftech's existing capabilities and vertical integration could potentially position the company to be an attractive partner with the Department of Defense.

Negative Factors

Market Environment

The pricing environment currently remains challenging with spot prices declining further, and it's uncertain if the market will fully accept GrafTech's attempted price increase.

Tariff Risks

There is elevated risk associated with the US potentially implementing tariffs on GrafTech's operations in Mexico and Europe.

GrafTech International Business Overview & Revenue Model

Company Description

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. It offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes. The company sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

How the Company Makes Money

GrafTech International generates revenue primarily through the sale of graphite electrodes, which are sold to steel manufacturers and other customers operating electric arc furnaces. The company employs a direct sales model, working closely with clients to meet their specific material needs. Additional revenue streams include the sale of needle coke, a key raw material used in the production of graphite electrodes. GrafTech also benefits from strategic partnerships with major steel producers, which help secure long-term contracts and stabilize revenue. Market dynamics, such as global steel demand and pricing volatility, significantly influence GrafTech's earnings, as the company's profitability is closely tied to the price of graphite electrodes and the overall health of the steel industry.

GrafTech International Financial Statement Overview

Summary

GrafTech International faces significant financial challenges, with declining revenue, negative profitability, high leverage, and cash flow difficulties. These issues highlight potential risks in maintaining operational and financial stability in the near term.

Income Statement

The company's income statement shows a concerning downward trend in revenue and profitability. Recent TTM figures reveal negative gross profit and net income, indicating operational inefficiencies and significant losses. Revenue has declined over the past two years, and profitability metrics like EBIT and EBITDA margins have deteriorated, reflecting challenges in maintaining cost control and revenue generation.

Balance Sheet

GrafTech's balance sheet is under significant stress, as indicated by negative stockholders' equity and a high debt-to-equity ratio. The company has more liabilities than assets, leading to a negative equity position, which poses financial stability risks. High leverage and deteriorating equity ratios highlight potential solvency concerns and limited financial flexibility.

Cash Flow

The cash flow statement shows negative free cash flow and operating cash flow over recent periods, indicating challenges in generating cash from operations. The operating cash flow to net income and free cash flow to net income ratios are unfavorable, pointing to difficulties in sustaining cash flow despite financing activities. These trends suggest potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.78M	620.50M	1.28B	1.35B	1.22B
Gross Profit	-19.85M	36.21M	554.88M	644.45M	660.50M
EBITDA	1.67M	-145.21M	546.80M	589.04M	666.69M
Net Income	-131.16M	-255.25M	382.96M	388.33M	434.37M
Balance Sheet
Total Assets	1.22B	1.29B	1.60B	1.41B	1.43B
Cash, Cash Equivalents and Short-Term Investments	256.25M	176.88M	134.64M	57.51M	145.44M
Total Debt	1.09B	930.75M	921.93M	1.03B	1.42B
Total Liabilities	1.30B	1.21B	1.27B	1.39B	1.76B
Stockholders Equity	-78.90M	78.25M	337.71M	23.40M	-329.38M
Cash Flow
Free Cash Flow	-74.40M	14.37M	252.46M	384.78M	527.57M
Operating Cash Flow	-40.09M	68.41M	324.63M	443.04M	563.65M
Investing Cash Flow	-34.21M	-53.82M	-71.97M	-57.86M	-35.70M
Financing Cash Flow	155.72M	18.71M	-176.27M	-471.79M	-463.68M

GrafTech International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EAF, the sentiment is Positive. The current price of 1.27 is below the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.17, and below the 200-day MA of 1.32, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 18.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EAF.

GrafTech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	80 Outperform	$3.58B	10.91	19.13%	1.00%	3.73%	32.29%
ENR	72 Outperform	$1.96B	8.29	164.19%	4.17%	1.15%	2358.45%
Sector *	64 Neutral	$10.70B	16.30	6.50%	2.13%	2.67%	-20.48%
BE	63 Neutral	$8.61B	7,829.79	4.65%	―	22.72%	―
EOSE	57 Neutral	$1.66B	―	125.43%	―	128.49%	-697.81%
PLUG	50 Neutral	$1.73B	―	-83.81%	―	-19.85%	4.94%
EAF	48 Neutral	$327.85M	―	-213.73%	―	-10.79%	26.22%

GrafTech International Corporate Events

GrafTech International Holds Annual Stockholders Meeting

GrafTech International Ltd. held its Annual Meeting of Stockholders on May 8, 2025, where several key proposals were voted on. The election of Michel J. Dumas and Eric V. Roegner as directors, the ratification of Deloitte & Touche LLP as the accounting firm, and the approval of executive compensation were all passed. Additionally, stockholders decided to hold an advisory vote on executive compensation annually.