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Ferroglobe PLC (GSM)
NASDAQ:GSM
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Ferroglobe
(NASDAQ:GSM)
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Rating:50Neutral
Price Target:
$4.00
▼(-7.19% Downside)
Ferroglobe's overall stock score reflects significant financial challenges, including declining revenues and profitability, and negative cash flow growth. While there are some positive developments from the earnings call, such as increased revenue and adjusted EBITDA, these are counterbalanced by market uncertainties and declining silicon metal prices in Europe. The technical analysis suggests a neutral trend, and the valuation indicates potential undervaluation but is hampered by negative earnings.
Ferroglobe (GSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$821.15M
Dividend Yield1.28%
Average Volume (3M)859.62K
Price to Earnings (P/E)27.9
Beta (1Y)0.78
Revenue Growth-8.59%
EPS Growth-256.43%
CountryUS
Employees3,283
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.08
Shares Outstanding186,625,870
10 Day Avg. Volume1,022,680
30 Day Avg. Volume859,618
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)0.99
Price to Sales (P/S)0.43
P/FCF Ratio4.28
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit2.15
Enterprise Value/Ebitda281.76
Forecast
1Y Price Target
$4.00Price Target Upside-7.19% Downside
Rating ConsensusHold
Number of Analyst Covering0
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 generates revenue primarily through the sale of silicon metal and ferrosilicon products to various industries, including steel production, chemical manufacturing, and renewable energy. Key revenue streams include long-term contracts with major customers, spot market sales, and customized products tailored to specific industry needs. The company also benefits from strategic partnerships with firms in the automotive and electronics sectors, which enhance its market reach and stability. Additionally, fluctuations in global silicon prices can significantly impact earnings, making market conditions a crucial factor in the company’s financial performance.
Ferroglobe Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive revenue and volume growth, improved EBITDA, and strategic shareholder moves. However, these were offset by significant challenges in the European market, price declines, and uncertainty leading to the withdrawal of 2025 guidance.Q2-2025 Updates
Positive Updates
Revenue and Volume Growth
Sales increased 26% in the second quarter to $387 million, with a 27% increase in volumes across all product categories.
Adjusted EBITDA Improvement
Adjusted EBITDA rebounded to a positive $22 million from a loss in the first quarter, with a margin of 6%.
Shareholder Returns
600,000 shares were purchased for $2 million and $2.6 million were paid in dividends in the second quarter.
Manganese Segment Performance
Manganese-based alloys posted a 43% revenue increase and adjusted EBITDA improved to a $17 million profit.
Joining Russell Indexes
Ferroglobe joined the Russell 2000 and 3000 indexes, increasing visibility among institutional investors.
Negative Updates
European Silicon Metal Price Decline
Silicon metal prices in Europe declined by approximately 20% in the past month due to low-priced imports from China.
Market Uncertainty
The company withdrew its 2025 guidance due to uncertainties around global trade policies and tariff structures.
Challenges in European Market
The EU 27 producers' market share dropped from 40% to approximately 15% due to increased imports from China.
Weak Demand in Silicon Metal
Q2 volumes were still impacted by weak demand and low-priced silicon metal imports from China into the EU.
Company Guidance
During Ferroglobe's Second Quarter 2025 Earnings Call, the company announced the withdrawal of its 2025 guidance due to increasing uncertainty around global trade policies, tariffs, and market dynamics, particularly in Europe and the U.S. Despite these challenges, Ferroglobe reported a significant improvement in performance, with a 27% increase in volumes and a 26% increase in revenue, leading to a positive adjusted EBITDA of $22 million. Key developments included a decline in European silicon metal prices driven by increased Chinese imports, and the impact of U.S. antidumping and countervailing duties boosting domestic market dynamics. Ferroglobe's strategic focus on operational efficiency and cost control helped maintain a strong balance sheet and positive cash flow. The company also highlighted progress in trade negotiations and the potential positive impact of EU safeguard measures anticipated to take effect in 2026, which are expected to enhance market conditions.Ferroglobe Financial Statement Overview
Summary
Ferroglobe faces significant financial challenges, with declining revenues and profitability, as well as negative growth in free cash flow. While leverage is manageable, the company struggles with operational inefficiencies and cash flow generation.Income Statement
Ferroglobe's income statement shows a decline in revenue and profitability. The TTM data indicates a negative net profit margin of -3.80% and a gross profit margin of 30.70%, reflecting challenges in maintaining profitability. The EBIT margin is negative, indicating operational inefficiencies. Revenue growth has been negative, suggesting a contraction in sales.45
Neutral
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.18 in the TTM, indicating manageable leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is not explicitly calculated, but the relatively low debt levels suggest some financial stability.55
Neutral
Cash Flow
Cash flow analysis shows a significant decline in free cash flow growth, down by 93.91% in the TTM. The operating cash flow to net income ratio is 0.44, indicating limited cash generation relative to net income. The free cash flow to net income ratio is 0.65, suggesting some cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.64B | 1.65B | 2.60B | 1.78B | 1.14B |
| Gross Profit | 355.16M | 616.81M | 770.75M | 1.24B | 496.68M | 247.41M |
| EBITDA | 2.71M | 134.46M | 268.34M | 734.38M | 128.58M | -47.26M |
| Net Income | -104.55M | 23.54M | 82.66M | 440.31M | -100.33M | -188.67M |
Balance Sheet | ||||||
| Total Assets | 1.66B | 1.47B | 1.76B | 1.98B | 1.53B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 148.08M | 138.54M | 136.47M | 317.94M | 114.50M | 103.72M |
| Total Debt | 220.04M | 208.61M | 302.19M | 443.15M | 557.62M | 504.55M |
| Total Liabilities | 848.25M | 638.20M | 888.88M | 1.21B | 1.19B | 970.78M |
| Stockholders Equity | 812.64M | 720.51M | 748.06M | 771.14M | 335.07M | 421.06M |
Cash Flow | ||||||
| Free Cash Flow | 8.28M | 167.09M | 91.91M | 351.72M | -28.94M | 121.36M |
| Operating Cash Flow | 76.26M | 243.26M | 178.37M | 405.02M | -1.34M | 154.27M |
| Investing Cash Flow | -67.78M | -66.94M | -81.81M | -61.68M | -23.85M | -31.94M |
| Financing Cash Flow | -22.71M | -175.51M | -282.15M | -140.46M | 10.45M | -113.33M |
Ferroglobe Technical Analysis
Positive
4.31
Price Trends
4.25
Positive
4.07
Positive
3.91
Positive
Market Momentum
0.02
Negative
54.37
Neutral
68.73
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 4.31 is above the 20-day moving average (MA) of 4.19, above the 50-day MA of 4.25, and above the 200-day MA of 3.91, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 68.73 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | 858.61M | -701.11 | -2.35% | ― | 178.66% | 82.83% | |
53 Neutral | 667.49M | -7.30 | -10.19% | 2.02% | 8.66% | 66.06% | |
50 Neutral | $821.15M | 27.86 | -12.38% | 1.28% | -8.59% | -256.43% | |
46 Neutral | 794.59M | -6.48 | -65.10% | ― | 7.27% | 27.35% | |
44 Neutral | 430.58M | -1.14 | -51.71% | ― | ― | ― | |
42 Neutral | 2.50B | -17.55 | ― | ― | ― | -9.91% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
GSM
Ferroglobe
4.31
-0.21
-4.65%
CMP
Compass Minerals International
18.87
6.48
52.30%
UAMY
United States Antimony
6.31
5.54
719.48%
NEXA
Nexa Resources SA
5.00
-2.02
-28.77%
NB
NioCorp Developments
7.31
5.18
243.19%
CRML
Critical Metals Corp
7.02
-0.27
-3.70%
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.