Steppe Cement (STCM) AI Stock Analysis

• Market Cap: £41.61M
• Dividend Yield: 7.89%
• Average Volume (3M): 86.13K
• Price to Earnings (P/E): 57.6
• Beta (1Y): 0.49
• Revenue Growth: 0.93%
• EPS Growth: -80.00%
• Country: UK
• Employees: 794
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 219,000,000
• 10 Day Avg. Volume: 151,698
• 30 Day Avg. Volume: 86,127
• PEG Ratio: -0.55
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 4.41
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 20.50p ▲(7.89% Upside)

Steppe Cement's overall score is driven by strong cash flow and low leverage, positive corporate events, and attractive dividend yield. However, high P/E ratio and overbought technical indicators pose risks.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates effective capital management, providing flexibility for future investments and debt servicing.

Low Leverage

Low leverage enhances financial stability and reduces risk, allowing the company to withstand economic fluctuations and invest in growth.

Diversified Revenue Streams

A diversified customer base across multiple sectors ensures stable demand and reduces dependency on any single market segment.

Negative Factors

Declining Margins

Declining margins suggest cost pressures and operational inefficiencies, which could impact profitability if not addressed.

Revenue Growth Challenges

Inconsistent revenue growth indicates challenges in market expansion and product demand, potentially affecting long-term growth prospects.

Declining Asset Base

A declining asset base could limit future growth opportunities and indicates potential issues in asset management and value retention.

Steppe Cement Business Overview & Revenue Model

Company Description

Steppe Cement (STCM) is a leading cement manufacturing company based in Kazakhstan, primarily engaged in the production and sale of cement and related construction materials. The company operates in the construction sector, catering to both domestic and international markets. Steppe Cement's core products include various types of cement used in civil engineering and construction projects, contributing to infrastructure development in the region.

How the Company Makes Money

Steppe Cement generates revenue primarily through the sales of its cement products, which are essential for construction and infrastructure development. The company's revenue model is based on direct sales to construction companies, distributors, and retail customers. Key revenue streams include bulk sales of different cement types, including ordinary Portland cement and specialized variants tailored for specific construction needs. Additionally, Steppe Cement may benefit from strategic partnerships with construction firms and government contracts for public infrastructure projects, which can provide a steady demand for their products. Factors contributing to its earnings include the overall growth of the construction sector in Kazakhstan, effective cost management, and the company's ability to adapt to market demands.

Steppe Cement Financial Statement Overview

Summary

Steppe Cement demonstrates a mixed financial performance. Strong cash flow and low leverage are positive, but revenue growth and margin pressures are concerns. The balance sheet is stable, but declining assets and equity suggest potential risks.

Income Statement

Steppe Cement's income statement shows moderate performance with some areas of concern. The revenue growth has been inconsistent, with a slight increase in the latest year but previously showing a decline. The gross profit margin has weakened over recent years, indicating potential cost pressures. EBIT and EBITDA margins have also decreased significantly, reflecting challenges in operational efficiency. However, the company remains profitable with a positive net profit margin, although it has decreased sharply from previous years.

Balance Sheet

The balance sheet of Steppe Cement indicates a stable financial position with low debt levels. The debt-to-equity ratio is favorable, suggesting prudent financial management and low leverage. Equity ratio remains strong, highlighting a solid asset base funded by equity. However, a decline in total assets and stockholders' equity over the years may signal a need for caution in asset management and potential risks in value retention.

Cash Flow

Steppe Cement's cash flow demonstrates strong operational capabilities with consistent operating cash flow generation. Free cash flow is positive and has shown significant growth, indicating effective capital expenditure management. The operating cash flow to net income ratio is robust, suggesting effective conversion of income into cash. This overall cash flow strength provides the company with flexibility for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.22M	84.92M	81.76M	86.73M	84.58M	74.77M
Gross Profit	17.66M	23.36M	24.20M	37.62M	39.74M	32.33M
EBITDA	7.38M	6.81M	11.69M	27.85M	30.96M	23.13M
Net Income	1.77M	997.29K	4.53M	17.88M	17.07M	11.12M
Balance Sheet
Total Assets	80.63M	79.17M	95.82M	88.00M	86.61M	81.27M
Cash, Cash Equivalents and Short-Term Investments	7.27M	6.06M	6.44M	4.14M	10.14M	8.21M
Total Debt	4.79M	5.21M	6.48M	6.79M	7.58M	10.70M
Total Liabilities	23.90M	22.12M	25.12M	22.92M	21.03M	23.33M
Stockholders Equity	56.73M	57.05M	70.70M	65.08M	65.58M	57.94M
Cash Flow
Free Cash Flow	7.33M	9.63M	2.59M	6.56M	12.90M	16.70M
Operating Cash Flow	7.65M	11.10M	5.65M	14.33M	19.12M	19.81M
Investing Cash Flow	-43.97K	-1.28M	-2.08M	-7.11M	-5.71M	-2.81M
Financing Cash Flow	-4.89M	-9.46M	-1.32M	-12.05M	-11.22M	-17.01M

Steppe Cement Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STCM, the sentiment is Positive. The current price of 19 is above the 20-day moving average (MA) of 16.69, above the 50-day MA of 16.70, and above the 200-day MA of 15.92, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 89.04 is Negative, neither overbought nor oversold. The STOCH value of 31.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:STCM.

Steppe Cement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBH	72 Outperform	£78.09M	15.09	5.71%	5.35%	-0.29%	-33.41%
FORT	69 Neutral	£376.58M	24.00	7.03%	2.18%	15.99%	96.05%
MSLH	68 Neutral	£447.99M	18.92	3.57%	4.27%	1.31%	10.19%
IBST	67 Neutral	£526.50M	43.31	3.10%	2.50%	5.58%	66.49%
STCM	66 Neutral	£41.61M	57.58	―	7.89%	0.93%	-80.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ECOB	53 Neutral	£21.43M	-5.71	-27.34%	―	831.19%	4.04%

Steppe Cement Corporate Events

Steppe Cement Announces Capital Repayment Approval

Steppe Cement Limited, a company involved in the cement industry, announced the approval of a Special Resolution for a capital repayment at its recent Extraordinary General Meeting (EGM). The resolution, which received 82% shareholder approval, will reduce the company’s share capital from USD65,399,924 to USD61,049,924 through a capital repayment of approximately 1.5 pence per ordinary share. This capital repayment, amounting to USD4,350,000, will be distributed to entitled shareholders by the end of 2025, with the number of outstanding shares remaining unchanged at 219,000,000.

Steppe Cement Proposes Capital Repayment via Share Reduction

Steppe Cement Ltd has announced a proposed capital repayment of approximately 1.5 pence per ordinary share through a capital reduction, pending shareholder approval at an upcoming Extraordinary General Meeting. This move aims to return excess capital to shareholders while maintaining sufficient reserves for future investments, without affecting the number of outstanding shares or earnings per share.

Steppe Cement Reports Revenue Growth Amidst Stable Prices and Resolves Tax Dispute

Steppe Cement Ltd reported a 21% increase in revenue for Q3 2025 compared to the same period in 2024, driven by higher sales volumes and increased prices in local currency. Despite a rise in domestic cement demand, competitive pressures and increased transportation costs have kept producer prices stable. The company plans to restructure an inter-company loan into a publicly listed bond to provide financial flexibility for future growth projects. Additionally, a tax dispute with the Kazakh authorities was resolved favorably, enhancing the company’s operational stability.

Steppe Cement Reports Revenue Growth Amid Market Expansion

Steppe Cement Ltd reported a 19% increase in revenue to USD40.9 million for the first half of 2025, driven by an 18% rise in sales volume. Despite facing a net loss of USD0.5 million, the company improved its financial position compared to the previous year. The Kazakh cement market grew by 19% during the same period, but the company anticipates slower growth in the latter half of 2025. Steppe Cement is focusing on ecological compliance and exploring opportunities to enhance clinker production, while also managing challenges such as increased electricity costs and general inflation.