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Ferroglobe PLC (GSM)
NASDAQ:GSM
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Ferroglobe
(NASDAQ:GSM)
Rating:55Neutral
Price Target:
$4.00
▼(-5.66%Downside)
Ferroglobe (GSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$740.90M
Dividend Yield1.41%
Average Volume (3M)1.65M
Price to Earnings (P/E)27.9
Beta (1Y)0.55
Revenue Growth-4.98%
EPS Growth-192.96%
CountryUS
Employees3,283
SectorBasic Materials
Sector Strength73
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.20
Shares Outstanding186,625,870
10 Day Avg. Volume3,092,809
30 Day Avg. Volume1,651,647
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio2.06
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit1.77
Enterprise Value/Ebitda1.49
Forecast
1Y Price Target
$8.00Price Target Upside88.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 primarily through the production and sale of silicon metal and alloys. The company's revenue streams are largely derived from long-term contracts and spot market sales to various industries that use these materials in the production of their goods. Key revenue generators include the aluminum industry, which uses silicon as an alloying agent; the chemical industry, which requires silicon for silicones and other compounds; and the solar industry, where silicon is a critical component in photovoltaic cells. Ferroglobe's earnings are influenced by factors such as global demand for its products, commodity prices, and its ability to manage production costs efficiently. Additionally, strategic partnerships and acquisitions play a role in expanding its market reach and enhancing its revenue potential.
Ferroglobe Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 24.71%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
Ferroglobe's earnings call presented a mixed outlook. While the company maintained a strong balance sheet and highlighted positive impacts from expected trade measures and operational efficiencies, significant challenges were reported in the silicon metal segment, including volume and price declines. The sentiment is balanced with optimism for future improvements due to regulatory measures.Q1-2025 Updates
Positive Updates
Strong Balance Sheet
Ferroglobe maintained a strong balance sheet with a positive net cash position of $19 million at the end of the first quarter, demonstrating resilience in a challenging market environment.
Positive Impact of Trade Measures
Several regulatory trade measures are expected to stabilize the market and create a more constructive environment, which should benefit Ferroglobe as the largest producer with operations that are nearly 100% backwards integrated.
Silicon-Based Alloys Revenue Increase
Silicon-based alloys revenue increased by 7% in the first quarter, driven by a 9% increase in volume.
Operational Efficiency and Free Cash Flow Generation
Despite challenging market conditions, Ferroglobe generated $5 million of free cash flow by efficiently managing working capital.
Positive Trends in Silicon Beta and Manganese Segments
The silicon beta market showed positive trends with a 9% increase in volume, and the manganese segment continued to show solid demand.
Negative Updates
Significant Decline in Silicon Metal Segment
The silicon metal segment experienced a 27% drop in volume, leading to negative adjusted EBITDA of $27 million for the first quarter.
Revenue and Price Declines
Revenue decreased by 16% in the first quarter, with a 35% decrease in silicon metal revenue and an 11% drop in silicon metal average selling prices.
Increased Costs and Negative EBITDA Margin
Raw material costs increased as a percentage of sales, and the company reported an adjusted EBITDA margin of negative 9% for the first quarter.
Impact of Low-Price Imports
Increased imports from countries like Brazil, Australia, Malaysia, Norway, and Thailand negatively impacted volumes and pricing.
Company Guidance
During Ferroglobe's first quarter 2025 earnings call, management provided guidance amidst challenging market conditions, with a noted 27% drop in silicon metal volumes and a 9% decline in the US silicon metal index pricing from the previous quarter. Despite this, Ferroglobe is optimistic about a recovery, anticipating positive adjusted EBITDA in the second quarter and maintaining their full-year guidance of $100 million to $170 million in adjusted EBITDA. The company highlighted several trade measures, including substantial anti-dumping duties ranging up to 1,042% for countries such as Russia and Kazakhstan, which are expected to stabilize the market. Additionally, Ferroglobe emphasized their strong balance sheet, positive net cash position of $19 million, and strategic investments, alongside a modest 8% dividend increase and ongoing share repurchases. They generated $5 million in free cash flow, driven by a $25 million reduction in working capital, and plan to fully implement their sales and operational planning (S&OP) by the end of 2025 to further enhance their operational efficiency.Ferroglobe Financial Statement Overview
Summary
Ferroglobe is experiencing financial pressures with declining revenues and profitability, as shown by a negative EBIT and net income. Moderate leverage on the balance sheet and positive operating cash flow provide some stability, but declining free cash flow growth is a concern. Overall, financial challenges suggest the need for strategic improvements.Income Statement
Ferroglobe's income statement shows declining revenue and profitability. The TTM period reveals a negative EBIT and net income, indicating operational challenges. The gross profit margin has decreased over recent periods, and there is significant volatility in net profit margins. Notably, revenue growth has been negative, highlighting a potential decline in market demand or competitive challenges.45
Neutral
Balance Sheet
The balance sheet presents a mixed picture with a reasonable equity ratio and a manageable debt-to-equity ratio, indicating a moderate leverage level. However, the decline in stockholders' equity suggests erosion of shareholder value. The return on equity has turned negative in the latest TTM period, reflecting profitability challenges.60
Neutral
Cash Flow
Cash flow analysis shows a positive operating cash flow, which is a good indicator of liquidity. However, the free cash flow growth rate has declined, raising concerns about future cash generation potential. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio indicates challenges in converting profits into cash.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.64B | 1.65B | 2.60B | 1.78B | 1.14B |
| Gross Profit | 478.77M | 616.81M | 770.75M | 1.24B | 496.68M | 247.41M |
| EBITDA | 61.17M | 134.46M | 268.34M | 734.38M | 128.58M | -47.26M |
| Net Income | -59.22M | 23.54M | 82.66M | 440.31M | -100.33M | -188.67M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.47B | 1.76B | 1.98B | 1.53B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 137.84M | 138.54M | 136.47M | 317.94M | 114.50M | 103.72M |
| Total Debt | 118.95M | 198.82M | 302.19M | 443.15M | 557.62M | 504.55M |
| Total Liabilities | 759.93M | 638.20M | 888.88M | 1.21B | 1.19B | 970.78M |
| Stockholders Equity | 666.83M | 720.51M | 748.06M | 771.14M | 335.07M | 421.06M |
Cash Flow | ||||||
| Free Cash Flow | 135.82M | 167.09M | 91.91M | 351.72M | -28.94M | 121.36M |
| Operating Cash Flow | 210.24M | 243.26M | 178.37M | 405.02M | -1.34M | 154.27M |
| Investing Cash Flow | -72.45M | -66.94M | -81.81M | -61.68M | -23.85M | -31.94M |
| Financing Cash Flow | -22.06M | -175.51M | -282.15M | -140.46M | 10.45M | -113.33M |
Ferroglobe Technical Analysis
Positive
4.24
Price Trends
3.76
Positive
3.71
Positive
3.94
Positive
Market Momentum
0.03
Negative
64.52
Neutral
73.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSM, the sentiment is Positive. The current price of 4.24 is above the 20-day moving average (MA) of 3.86, above the 50-day MA of 3.76, and above the 200-day MA of 3.94, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, shareholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our ordinary shares. Q4, 2023
2.
The Company may be restricted or unable to pay cash dividends in the future. Q4, 2023
3.
Changes in laws, rules or regulations relating to data privacy and security, or any actual or perceived failure by us to comply with such laws, rules, regulations and standards, or contractual or other obligations relating to data privacy and security, could result in claims, changes to our business practices, penalties, increased cost of operations and could have a material adverse effect on our reputation, results of operations, financial condition and cash flows. Q4, 2023
Ferroglobe Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $659.54M | ― | -16.64% | 2.03% | 12.30% | 42.72% | |
55 Neutral | $740.90M | 27.86 | -7.29% | 1.41% | -4.98% | -192.96% | |
54 Neutral | $886.93M | ― | -46.32% | 1.61% | 5.81% | -78.45% | |
47 Neutral | $354.46M | ― | -814.96% | ― | ― | ― | |
45 Neutral | $234.63M | ― | -4.38% | ― | 105.14% | 84.95% | |
44 Neutral | C$976.20M | -6.71 | -13.35% | 2.69% | 17.20% | -32.62% | |
42 Neutral | $2.37B | ― | -667.42% | ― | ― | -3.49% |
* Basic Materials Sector Average
Performance Comparison
GSM
Ferroglobe
4.24
-1.38
-24.56%
CMP
Compass Minerals International
22.02
11.97
119.10%
UAMY
United States Antimony
2.13
1.82
587.10%
NEXA
Nexa Resources SA
4.98
-2.79
-35.91%
TMC
TMC the metals company Inc.
6.38
4.86
319.74%
LZM
Lifezone Metals
4.48
-4.14
-48.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.