Acerinox (ACX) AI Stock Analysis

• Market Cap: €2.56B
• Dividend Yield: 4.68%
• Average Volume (3M): 710.78K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.90
• Revenue Growth: -18.08%
• EPS Growth: -1.46%
• Country: ES
• Employees: 9,344
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 0.04
• Shares Outstanding: 249,335,370
• 10 Day Avg. Volume: 802,977
• 30 Day Avg. Volume: 710,781
• PEG Ratio: -0.73
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.02
• 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: €12.17
• Price Target Upside: 13.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: €12.00 ▲(11.94%Upside)

Acerinox presents a solid investment opportunity with a strong technical outlook and reasonable valuation. The stock shows positive momentum and offers an attractive dividend yield. However, challenges in revenue growth and cash flow generation pose risks that should be monitored. Overall, the company's stable financial health and market positioning offer a balanced risk-reward profile.

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 makes money through the production and sale of stainless steel products. The company's revenue model primarily revolves around manufacturing stainless steel coils, sheets, and long products which are then distributed globally to various industries. Key revenue streams include direct sales to industrial clients, distributors, and service centers. Acerinox benefits from strategic partnerships and joint ventures with other entities that help enhance its global reach and market penetration. The company's financial performance is influenced by factors such as commodity prices, production efficiency, and global demand for stainless steel products.

Acerinox Financial Statement Overview

Summary

Acerinox maintains operational efficiency and a stable capital structure, but faces challenges in revenue growth and free cash flow generation. While profitability margins are stable, the decline in revenue and cash flow raises concerns. The company's financial health is adequate, but caution is advised given potential market fluctuations.

Income Statement

Acerinox shows a solid performance with a healthy gross profit margin of approximately 34.36% in 2024 and a steady net profit margin around 4.15%. However, revenue has decreased by 18.09% from 2023 to 2024, which is a notable concern. EBIT and EBITDA margins have remained relatively stable, indicating operational efficiency despite revenue contraction.

Balance Sheet

The company's debt-to-equity ratio is 0.94, suggesting a balanced capital structure. ROE stands at 8.9%, reflecting moderate profitability. The equity ratio of 39.06% indicates reasonable financial stability, but the high leverage could pose risks if market conditions worsen.

Cash Flow

Free cash flow shows a significant drop, with a growth rate of -71% from 2023 to 2024, signaling potential cash generation issues. The operating cash flow to net income ratio of 1.31 indicates decent cash conversion, but the free cash flow to net income ratio of 0.39 highlights reduced cash availability after capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.79B	5.41B	6.61B	8.69B	6.71B	4.67B
	Gross Profit
1.40B	1.86B	1.37B	3.08B	2.43B	1.50B
	EBIT
450.42M	348.10M	508.32M	875.77M	809.71M	163.13M
	EBITDA
543.38M	609.63M	627.52M	1.09B	994.38M	359.23M
	Net Income Common Stockholders
229.95M	224.95M	228.13M	556.05M	571.88M	49.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.35B	1.80B	1.56B	1.29B	939.78M
	Total Assets
6.38B	6.47B	6.10B	6.32B	5.98B	4.73B
	Total Debt
2.28B	2.38B	2.15B	1.99B	1.85B	1.69B
	Net Debt
1.20B	1.12B	360.03M	440.48M	578.22M	772.24M
	Total Liabilities
3.88B	3.89B	3.64B	3.77B	3.77B	3.12B
	Stockholders Equity
2.50B	2.53B	2.41B	2.47B	2.16B	1.57B
Cash Flow		Free Cash Flow
52.54M	88.89M	306.58M	407.37M	285.67M	319.11M
	Operating Cash Flow
330.13M	293.67M	481.48M	544.08M	387.81M	420.55M
	Investing Cash Flow
-917.06M	-896.46M	-174.70M	-125.50M	-90.44M	-372.48M
	Financing Cash Flow
140.80M	-36.03M	-5.57M	-216.03M	10.31M	67.50M

Acerinox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.72 is above the 20-day moving average (MA) of 10.64, above the 50-day MA of 10.29, and above the 200-day MA of 9.78, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 53.56 is Neutral, 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
ACX	75 Outperform	€2.56B	11.89	9.11%	4.68%	-18.08%	-1.46%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%
0KD1		€484.61M	22.10	7.40%	3.97%	―	―
0KD2		€104.81M	3.73		―	―	―

Acerinox Corporate Events

Acerinox Surpasses Expectations in Q1 2025 Amid Geopolitical Challenges

Acerinox reported a strong performance in the first quarter of 2025, achieving an EBITDA of 102 million euros, surpassing previous expectations despite challenges from geopolitical and tariff issues. The company saw a significant increase in steel production and managed to reduce working capital while paying an interim dividend. Looking ahead, Acerinox anticipates a higher EBITDA in the second quarter, driven by a solid order book in the U.S. and strategic initiatives in Europe, although uncertainties in demand persist.

Acerinox Reports Strong Q1 2025 Amidst Geopolitical Challenges

Acerinox reported a strong first quarter in 2025, achieving an EBITDA of 102 million euros despite geopolitical and tariff uncertainties affecting demand. The company saw a 29% increase in steel production and a 17% rise in revenue compared to the previous quarter. Acerinox is concentrating on executing its strategic plan and integrating Haynes International, aiming for higher EBITDA in the next quarter. The integration of Haynes is progressing well, with estimated synergies increasing to 75 million dollars.

Acerinox Approves 2024 Financials and Dividend Distribution

Acerinox held its Ordinary General Shareholders’ Meeting, where several key agenda items were approved. These included the approval of the annual accounts and management reports for 2024, the consolidated non-financial information statement, and a significant dividend distribution plan. The company will distribute dividends amounting to 154.6 million euros, with a complementary dividend to be paid in July 2025. These decisions reflect Acerinox’s strong financial performance and commitment to shareholder returns.

North American Stainless Appoints New CEO to Drive Strategic Growth

Acerinox’s U.S. subsidiary, North American Stainless, has appointed Clive Grannum as its new CEO, succeeding Cristóbal Fuentes, who will transition to a Senior Advisor role after 44 years of service. Grannum’s extensive experience in leading global businesses and his strategic vision are expected to enhance NAS’s operations in the U.S. and support the implementation of Acerinox’s strategic plan.

Acerinox Announces 2025 Shareholders Meeting

Acerinox, S.A. has announced the convening of its Ordinary General Meeting of Shareholders, to be held on May 5, 2025, on first call, or May 6, 2025, on second call, at the Auditorio Mutua Madrileña in Madrid. The announcement, which is in compliance with the Securities Market and Investment Services Law, is available in the Official Gazette of the Commercial Registry and the newspaper ‘Expansión’, as well as on the company’s website, providing shareholders with necessary documentation and reports.