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Ferroglobe PLC (GSM)
NASDAQ:GSM
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Ferroglobe
(NASDAQ:GSM)
70Outperform
Ferroglobe (GSM) vs. S&P 500 (SPY)
Market Cap
$715.84M
Dividend Yield1.36%
Average Volume (3M)1.15M
Price to Earnings (P/E)136.6
Beta (1Y)0.60
Revenue Growth-0.37%
EPS Growth-94.30%
CountryUS
Employees3,403
SectorBasic Materials
Sector Strength57
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.03
Shares Outstanding187,885,090
10 Day Avg. Volume1,008,134
30 Day Avg. Volume1,152,551
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.43
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside137.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Ferroglobe Business Overview & Revenue Model
Company DescriptionFerroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics, as well as silicon metal for primary and secondary aluminum producers; silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. The company also offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Further, the company operates quartz mines in Spain, South Africa, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom. Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.U.
How the Company Makes MoneyFerroglobe makes money by manufacturing and selling silicon metal, silicon-based alloys, and manganese-based alloys. The company generates revenue through long-term supply contracts and spot sales to a diverse customer base across different industries, including automotive, chemical, and solar energy. Key revenue streams include the sale of silicon metal, used in aluminum alloy production and the chemical industry, and manganese-based alloys, essential for steel production. Ferroglobe's earnings are influenced by factors such as commodity prices, production efficiencies, and strategic partnerships with suppliers and customers that help stabilize supply chains and optimize production costs.
Ferroglobe Financial Statement Overview
Summary
Ferroglobe demonstrates strong cash flow management with an impressive increase in operating cash flows and reduced leverage, as indicated by a low debt-to-equity ratio. However, the income statement reflects inconsistent revenue growth and declining margins, suggesting challenges in operating efficiency. The balance sheet is stable, but returns on equity could be improved.Income Statement
Ferroglobe has shown a commendable recovery in profitability with a net income of $45.2 million in TTM compared to losses in previous years. Gross profit margin stands at 23.1% for TTM, indicating strong cost management relative to revenue. However, the revenue growth has been inconsistent, with a decline from previous high levels observed in 2022. The EBIT and EBITDA margins have also decreased over the past year, which might indicate pressures on operating efficiency.72
Positive
Balance Sheet
The company has improved its debt position significantly, with a debt-to-equity ratio of 0.11 in TTM, reflecting reduced leverage. The equity ratio of 48.4% suggests a balanced capital structure. Return on equity is modest at 5.7%, indicating average returns on shareholder investments. The balance sheet appears stable but with room for improved shareholder returns.68
Positive
Cash Flow
Ferroglobe's cash flow position is strong, with a notable increase in operating cash flow to $370.1 million in TTM. The free cash flow has grown significantly, reflecting efficient capital expenditure management and robust cash generation. The operating cash flow to net income ratio is high, indicating that earnings are well-supported by cash flows.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.65B | 1.65B | 2.60B | 1.78B | 1.14B | 1.60B | Gross Profit |
| 382.42M | 770.75M | 1.24B | 496.68M | 247.41M | 282.76M | EBIT |
| 79.78M | 196.94M | 686.65M | 40.36M | -74.17M | -13.60M | EBITDA |
| 152.84M | 268.34M | 734.38M | 128.58M | -47.26M | -228.46M | Net Income Common Stockholders |
| 45.20M | 82.66M | 440.31M | -100.33M | -188.67M | -369.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 216.56M | 136.47M | 317.94M | 114.50M | 103.72M | 104.78M | Total Assets |
| 2.18B | 1.76B | 1.98B | 1.53B | 1.39B | 1.72B | Total Debt |
| 560.08M | 302.19M | 443.15M | 557.62M | 504.55M | 539.82M | Net Debt |
| 343.51M | 165.72M | 125.21M | 443.23M | 401.83M | 440.59M | Total Liabilities |
| 1.23B | 888.88M | 1.21B | 1.19B | 970.78M | 1.12B | Stockholders Equity |
| 943.79M | 748.06M | 771.14M | 335.07M | 421.06M | 599.44M |
| Cash Flow | Free Cash Flow | ||||
| 283.31M | 91.91M | 351.72M | -28.94M | 121.36M | -98.41M | Operating Cash Flow |
| 370.09M | 178.37M | 405.02M | -1.34M | 154.27M | -65.49M | Investing Cash Flow |
| -87.48M | -81.81M | -61.68M | -23.85M | -31.94M | 161.21M | Financing Cash Flow |
| -182.08M | -282.15M | -140.46M | 10.45M | -113.33M | -180.97M |
Ferroglobe Technical Analysis
Negative
3.79
Price Trends
3.84
Negative
3.99
Negative
4.40
Negative
Market Momentum
0.03
Positive
47.47
Neutral
9.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSM, the sentiment is Negative. The current price of 3.79 is above the 20-day moving average (MA) of 3.78, below the 50-day MA of 3.84, and below the 200-day MA of 4.40, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 9.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSM.
Ferroglobe Risk Analysis
Ferroglobe disclosed 72 risk factors in its most recent earnings report. Ferroglobe reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ferroglobe Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $715.84M | 136.56 | 0.67% | 1.36% | -0.37% | -94.30% | |
70 Outperform | $7.68B | 21.14 | 22.82% | ― | 4.51% | -2.90% | |
66 Neutral | $5.52B | 80.60 | 1.78% | 1.48% | -7.93% | -89.29% | |
60 Neutral | $1.62B | 35.17 | 5.86% | ― | -6.31% | -65.09% | |
59 Neutral | $253.34M | ― | -6.39% | ― | 71.84% | 72.93% | |
57 Neutral | $1.05B | 23.20 | 7.09% | 4.63% | -2.04% | -1.36% | |
47 Neutral | $2.72B | -3.49 | -20.75% | 3.27% | 3.42% | -28.80% |
* Basic Materials Sector Average
Performance Comparison
GSM
Ferroglobe
3.79
-1.13
-22.97%
ATI
ATI
54.00
2.83
5.53%
CMC
Commercial Metals Company
48.82
-9.36
-16.09%
KALU
Kaiser Aluminum
65.38
-20.56
-23.92%
CSTM
Constellium
10.94
-11.17
-50.52%
UAMY
United States Antimony
2.28
2.03
812.00%
Ferroglobe Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -0.52% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Ferroglobe's strong financial performance, including debt repayment and the initiation of a capital return program. However, it also acknowledged significant challenges such as declining revenues in key segments, market softness, and uncertainty in global trade conditions. Despite these issues, the company remains optimistic about future growth driven by trade measures and its position in the EV battery market.Highlights
Record Revenue and Cash Flow
Ferroglobe posted revenue of $1.6 billion and adjusted EBITDA of $154 million, with free cash flow of $164 million.
Debt Repayment and Financial Health
The company used strong cash flow generation to repay senior secured notes, eliminating $32 million in annual interest, and became net cash positive for the first time.
Capital Return Program Initiation
Ferroglobe initiated a capital return program with quarterly dividends and share buybacks, increasing dividends by approximately 8% in the first quarter of 2025.
Positive Trade Measures Impact
Trade measures by the U.S. and Europe, including antidumping and countervailing duties, are expected to benefit Ferroglobe significantly in the coming quarters.
Promising Outlook for EV Batteries
Ferroglobe sees potential in silicon metal for EV batteries, positioning itself to capitalize on the industry shift from graphite to silicon-rich anodes.
Lowlights
Decline in Silicon Metal Revenue
Silicon metal revenue declined 17% in Q4 to $161 million. Adjusted EBITDA for the segment also fell, influenced by higher costs and lower prices.
Challenges in European and North American Markets
Ferroglobe faced a challenging environment with soft market conditions in Europe and North America, affecting prices and volumes.
Lower Full Year EBITDA
Adjusted EBITDA for the full year was $154 million, down from $315 million in 2023, driven by higher energy costs and lower realized prices.
Uncertainty in Global Trade and Market Conditions
The company faces uncertainty due to potential trade measures, tariffs, and geopolitical issues, impacting its outlook and guidance for 2025.
Company Guidance
During Ferroglobe's fourth quarter and full-year 2024 earnings call, the company provided guidance for 2025, projecting an adjusted EBITDA range of $100 million to $170 million. This wide range reflects uncertainties in market conditions, trade cases, potential tariffs, and geopolitical issues. The firm reported 2024 revenue of $1.6 billion and adjusted EBITDA of $154 million. They also achieved a net cash positive position for the first time, enabling a capital return program with increased dividends by approximately 8% in the first quarter of 2025 and share buybacks initiated in the third quarter of 2024. The call highlighted the impact of global trade measures, such as the U.S. antidumping duties on ferrosilicon imports and the European Commission's ongoing safeguard investigations, which are expected to benefit Ferroglobe by improving its market share. Additionally, the company is optimistic about future growth due to anticipated improvements in end markets and ongoing advancements in silicon metal applications, particularly in the electric vehicle battery sector.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.