Acerinox (ACX) AI Stock Analysis

• Market Cap: €2.67B
• Dividend Yield: 4.8%
• Average Volume (3M): 809.73K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.95
• Revenue Growth: -3.02%
• EPS Growth: 43.07%
• Country: ES
• Employees: 9,344
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.10
• Shares Outstanding: 249,335,370
• 10 Day Avg. Volume: 866,100
• 30 Day Avg. Volume: 809,730
• PEG Ratio: -4.82
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 26.51
• 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: €13.69
• Price Target Upside: 13.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €11.50 ▼(-4.49% Downside)

Acerinox's stock score is primarily influenced by its financial performance and technical analysis. The company shows strong revenue growth but faces challenges in profitability and cash flow. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The attractive dividend yield provides some support to the stock.

Positive Factors

Global Market Presence

Acerinox's extensive global footprint allows it to effectively serve diverse markets and mitigate regional economic fluctuations, enhancing its competitive position.

Revenue Diversification

A diversified customer base across multiple industries reduces dependency on any single sector, providing revenue stability and resilience against sector-specific downturns.

Technological Advancements

Continued investment in technology and sustainability can drive long-term cost efficiencies and enhance margins, supporting competitive advantage and profitability.

Negative Factors

High Leverage

Increased leverage can strain financial flexibility and increase risk, particularly if market conditions worsen or interest rates rise, impacting long-term stability.

Declining Margins

Declining margins indicate rising cost pressures and reduced profitability, which can challenge the company's ability to generate sustainable profits over time.

Cash Flow Challenges

Significant reduction in free cash flow limits the company's ability to reinvest, pay down debt, or return capital to shareholders, affecting long-term growth prospects.

Acerinox Business Overview & Revenue Model

Company Description

Acerinox, S.A., through its subsidiaries, manufactures, transforms, and markets stainless steel products in Spain, the Americas, Africa, Asia, Oceania, and Europe. The company offers flat products, including coil cold rollings, hot rolled and black coils, teardrop steel or coils, and hot and cold rolled sheets, as well as roughing materials, discs, billets, and plates. It also provides long products, which include steel and color coated wires, corrugated wires, hexagonal wire rods, bars, hot and cold rebars, decorticated bars, black bars, steel profiles, and corrugated hot rolls. The company was incorporated in 1970 and is headquartered in Madrid, Spain.

How the Company Makes Money

Acerinox generates revenue primarily through the sale of stainless steel products, which include flat products (such as sheets and coils) and long products (like bars and rods). The company benefits from a diversified customer base across various industries, which ensures stability in its revenue streams. Key revenue sources also include the sale of semi-finished products and value-added services such as processing and logistics. Acerinox's earnings are influenced by global steel demand, pricing fluctuations in raw materials (like nickel and chromium), and its strategic partnerships with suppliers and distributors that enhance its market reach. Additionally, the company invests in technological advancements and sustainable practices, which can lead to cost efficiencies and improved profit margins.

Acerinox Financial Statement Overview

Summary

Acerinox shows strong revenue growth but faces challenges in profitability and cash flow. The increased leverage and declining margins highlight potential risks, while the stable equity ratio provides some balance. The company needs to improve operational efficiency and cash flow management.

Income Statement

Acerinox shows a strong revenue growth rate of 25.89% in the TTM, indicating a recovery from previous declines. However, the gross profit margin has decreased to 20.22% from higher levels in previous years, suggesting increased cost pressures. The net profit margin is relatively low at 1.77%, reflecting challenges in converting revenue into profit. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.10, indicating higher leverage, which could pose a risk if not managed properly. Return on equity has decreased to 6.26%, showing reduced profitability for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Acerinox's free cash flow has significantly decreased by 90.16% in the TTM, raising concerns about cash generation. The operating cash flow to net income ratio is low at 0.14, indicating potential issues in converting income into cash. The free cash flow to net income ratio is also low, suggesting limited cash available for reinvestment or debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.55B	5.41B	6.61B	8.69B	6.71B	4.67B
Gross Profit	1.73B	1.86B	2.18B	2.24B	1.66B	816.63M
EBITDA	758.03M	609.63M	627.52M	1.09B	994.38M	401.07M
Net Income	150.92M	224.95M	228.13M	556.05M	571.88M	49.05M
Balance Sheet
Total Assets	6.10B	6.47B	6.10B	6.32B	5.98B	4.73B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.35B	1.80B	1.56B	1.29B	939.78M
Total Debt	2.36B	2.40B	2.15B	2.00B	1.87B	1.69B
Total Liabilities	3.90B	3.89B	3.64B	3.77B	3.77B	3.12B
Stockholders Equity	2.15B	2.53B	2.41B	2.47B	2.16B	1.57B
Cash Flow
Free Cash Flow	17.82M	88.89M	306.58M	407.37M	285.67M	319.11M
Operating Cash Flow	274.66M	293.67M	481.48M	544.08M	387.81M	420.55M
Investing Cash Flow	-932.09M	-896.46M	-174.70M	-125.50M	-90.44M	-372.48M
Financing Cash Flow	-539.74M	-36.03M	-5.57M	-216.03M	10.31M	67.50M

Acerinox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.04
• 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 ES:ACX, the sentiment is Positive. The current price of 12.04 is above the 20-day moving average (MA) of 11.48, above the 50-day MA of 11.58, and above the 200-day MA of 10.74, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.71 is Neutral, neither overbought nor oversold. The STOCH value of 86.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ACX.

Acerinox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TUB	65 Neutral	€393.52M	12.89	11.13%	5.87%	-10.37%	38.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ACX	56 Neutral	€2.67B	30.08	3.97%	4.80%	-3.02%	43.07%