GrafTech International (EAF) AI Stock Analysis

• Market Cap: $310.87M
• Dividend Yield: N/A
• Average Volume (3M): 302.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -3.66%
• EPS Growth: 32.11%
• Country: US
• Employees: 1,072
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.03
• Shares Outstanding: 25,820,110
• 10 Day Avg. Volume: 247,042
• 30 Day Avg. Volume: 302,172
• PEG Ratio: 0.70
• Price to Book (P/B): -56.50
• Price to Sales (P/S): 8.27
• P/FCF Ratio: -59.91
• Enterprise Value/Market Cap: 4.01
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: -615.79
• Enterprise Value/Ebitda: 172.87
• 1Y Price Target: $16.67
• Price Target Upside: -0.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $14.00 ▼(-16.27% Downside)

GrafTech International's overall stock score is primarily impacted by its significant financial challenges, including declining revenues, high leverage, and negative equity. While the earnings call provided some positive insights into sales growth and cost reductions, the company's valuation remains unattractive with a negative P/E ratio. Technical analysis shows mixed signals, adding to the uncertainty. The potential recovery in the steel industry offers some hope, but the current financial instability is a major concern.

Positive Factors

Sales Volume Growth

The increase in sales volume indicates strong demand for GrafTech's products, which could lead to sustained revenue growth and improved market positioning.

Cost Reduction

Effective cost management enhances profitability and competitive advantage, allowing GrafTech to maintain margins even in challenging pricing environments.

Positive Cash Flow

Positive cash flow strengthens GrafTech's financial position, providing the liquidity needed to invest in growth opportunities and weather market volatility.

Negative Factors

Declining Revenue

Ongoing revenue decline poses a risk to GrafTech's long-term viability, as it may struggle to cover fixed costs and invest in future growth.

High Leverage

High leverage limits financial flexibility and increases risk, potentially leading to solvency issues if cash flows do not improve.

Net Loss

Sustained net losses can erode shareholder value and hinder GrafTech's ability to reinvest in its business, affecting long-term growth prospects.

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 used in electric arc furnaces for steel production. The company's revenue model is based on direct sales to steel manufacturers and other industrial clients who require high-quality electrode products. Key revenue streams include the sale of standard and premium-grade graphite electrodes, which can command higher prices due to their performance characteristics. Additionally, GrafTech benefits from long-term contracts with major steel producers, ensuring a steady flow of income. The company also engages in strategic partnerships and collaborations within the steel and industrial sectors, further enhancing its market reach and profitability. Factors contributing to its earnings include the global demand for steel, the efficiency and reliability of its products, and its ability to maintain competitive pricing in the market.

GrafTech International Financial Statement Overview

Summary

GrafTech International is facing significant financial challenges across all verticals. The income statement reflects declining revenues and profitability, while the balance sheet reveals high leverage and negative equity. Cash flow issues further compound the company's financial difficulties, raising concerns about its ability to sustain operations without substantial improvements or restructuring.

Income Statement

GrafTech International's income statement shows significant challenges. The company has experienced a consistent decline in revenue and profitability over recent years. The TTM data reveals negative gross profit and net profit margins, indicating operational inefficiencies and substantial losses. Despite a slight revenue growth in the TTM period, the overall trajectory remains concerning with negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet highlights critical financial instability, with negative stockholders' equity and a high debt-to-equity ratio. This indicates significant leverage and potential solvency risks. The return on equity is positive in the TTM period, but this is due to negative equity, which distorts the metric. The equity ratio is also negative, further emphasizing financial distress.

Cash Flow

Cash flow analysis shows a negative trend with declining operating and free cash flows. The TTM data indicates negative operating cash flow and free cash flow, although the free cash flow to net income ratio is positive due to substantial net losses. The company faces challenges in generating sufficient cash to cover its operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	521.89M	538.78M	620.50M	1.28B	1.35B	1.22B
Gross Profit	-2.03M	-22.19M	26.66M	545.40M	653.70M	655.83M
EBITDA	7.22M	1.67M	-145.21M	546.80M	589.04M	666.69M
Net Income	-204.19M	-131.16M	-255.25M	382.96M	388.33M	434.37M
Balance Sheet
Total Assets	1.11B	1.22B	1.29B	1.60B	1.41B	1.43B
Cash, Cash Equivalents and Short-Term Investments	177.63M	256.25M	176.88M	134.64M	57.51M	145.44M
Total Debt	1.14B	1.09B	930.75M	921.93M	1.03B	1.42B
Total Liabilities	1.30B	1.30B	1.21B	1.27B	1.39B	1.76B
Stockholders Equity	-194.36M	-78.90M	78.25M	337.71M	23.40M	-329.38M
Cash Flow
Free Cash Flow	-120.44M	-74.40M	22.52M	252.46M	384.78M	527.57M
Operating Cash Flow	-87.14M	-40.09M	76.56M	324.63M	443.04M	563.65M
Investing Cash Flow	-33.01M	-34.21M	-53.82M	-71.97M	-57.86M	-35.70M
Financing Cash Flow	155.55M	155.72M	18.71M	-176.27M	-471.79M	-463.68M

GrafTech International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.72 is above the 20-day moving average (MA) of 13.88, above the 50-day MA of 14.77, and above the 200-day MA of 11.41, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 92.31 is Negative, 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	79 Outperform	$5.45B	17.26	18.22%	0.67%	6.17%	20.86%
PLPC	71 Outperform	$1.07B	28.79	8.33%	0.37%	15.93%	12.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENR	57 Neutral	$1.63B	7.18	156.36%	6.59%	2.28%	534.60%
PLUG	50 Neutral	$3.06B	-1.01	-95.42%	―	2.53%	-2.83%
EAF	46 Neutral	$310.87M	-1.53	―	―	-3.66%	32.11%
FCEL	45 Neutral	$399.05M	―	-29.51%	―	78.82%	-20.81%

GrafTech International Corporate Events

GrafTech Announces Resignation of Board Members

On November 25, 2025, GrafTech International announced that Michel Dumas and Anthony Taccone would resign from the Board of Directors, effective December 31, 2025. Their resignations are not due to any disagreements with the company’s operations, policies, or practices.