Acerinox (ACX) AI Stock Analysis

• Market Cap: €2.37B
• Dividend Yield: 5.81%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.94
• Revenue Growth: -3.02%
• EPS Growth: 43.07%
• Country: ES
• Employees: 9,344
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.11
• Shares Outstanding: 249,335,370
• 10 Day Avg. Volume: 1,254,010
• 30 Day Avg. Volume: 1,072,976
• 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: €12.60
• Price Target Upside: 26.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: €11.50 ▲(15.69% Upside)

Acerinox's overall stock score is driven primarily by its reasonable valuation and high dividend yield. Despite operational efficiency, challenges in revenue growth and cash flow generation present risks. Technical analysis suggests neutral momentum, adding to the cautious outlook.

Acerinox Business Overview & Revenue Model

Company Description

Acerinox, S.A. (ACX) is a leading global manufacturer of stainless steel products, with operations spanning across numerous continents. The company is headquartered in Madrid, Spain, and operates in the production, distribution, and marketing of stainless steel products, including flat products, long products, and other specialty stainless steel items. Acerinox serves various industries, such as construction, automotive, energy, and household appliances, providing high-quality, corrosion-resistant materials designed to meet diverse industrial needs.

How the Company Makes Money

Acerinox generates revenue primarily through the production and sale of stainless steel products. The company's revenue model is centered around its three main product categories: flat products, long products, and specialty products. Flat products, such as coils and sheets, represent a significant portion of the company's sales, catering to industries like construction and automotive. Long products, including bars and wires, serve sectors such as energy and infrastructure. Specialty products provide tailored solutions for specific industrial applications. Acerinox's global presence and extensive distribution network enable it to reach a wide range of customers across different regions, contributing to its earnings. Furthermore, strategic partnerships with suppliers and distributors enhance its ability to offer competitive and high-quality stainless steel products. Factors such as operational efficiency, innovation, and market demand also play crucial roles in driving the company's profitability.

Acerinox Financial Statement Overview

Summary

Acerinox demonstrates operational efficiency and a stable capital structure with healthy profit margins. However, the decline in revenue by 18.09% and the significant drop in free cash flow, with a growth rate of -71%, raise concerns about its financial health.

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	7.00B	5.41B	6.61B	8.69B	6.71B	4.67B
Gross Profit	2.63B	1.86B	2.18B	2.24B	1.66B	1.50B
EBITDA	758.03M	609.63M	627.52M	1.09B	994.38M	359.23M
Net Income	140.92M	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	1.99B	1.85B	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	-462.74M	-36.03M	-5.57M	-216.03M	10.31M	67.50M

Acerinox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ACX, the sentiment is Negative. The current price of 9.94 is below the 20-day moving average (MA) of 10.47, below the 50-day MA of 10.43, and above the 200-day MA of 9.88, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 2.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:ACX.

Acerinox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACX	70 Outperform	€2.37B	26.67	3.97%	5.81%	-3.02%	43.07%
TUB	67 Neutral	€417.46M	13.68	11.13%	5.69%	-10.37%	38.82%
Sector *	61 Neutral	$9.70B	7.16	-0.14%	3.12%	3.13%	-55.47%

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.