AMG ADVANCED METALLURGICAL GROUP NV (AMG) AI Stock Analysis

• Market Cap: €1.15B
• Dividend Yield: 1.46%
• Average Volume (3M): 255.83K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 1.73
• Revenue Growth: 9.94%
• EPS Growth: N/A
• Country: NL
• Employees: 3,600
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.34
• Shares Outstanding: 32,504,166
• 10 Day Avg. Volume: 318,454
• 30 Day Avg. Volume: 255,828
• PEG Ratio: 0.10
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -6.64
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €35.00 ▲(27.64% Upside)

The score is primarily held back by weak cash generation (negative free cash flow and low cash conversion) and a leveraged balance sheet. Technicals show a strong uptrend, but the stock appears overextended (very high RSI/Stoch), and valuation is relatively expensive (P/E 31) with only a modest dividend yield.

Positive Factors

Revenue Growth

Positive revenue growth indicates a recovery from previous declines, suggesting improved market conditions and operational strategies.

Operational Efficiency

Improved gross profit margins demonstrate effective cost management, enhancing the company's ability to generate profit from sales.

Market Position

AMG's leadership in specialty metals positions it well to leverage industry demand, supporting long-term growth and competitive advantage.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting future investment and growth opportunities.

Cash Flow Challenges

Negative free cash flow limits the company's ability to invest in growth initiatives and may affect its financial stability over time.

Profitability Issues

Low net profit margins indicate difficulties in achieving profitability, which could hinder long-term financial performance and shareholder returns.

AMG ADVANCED METALLURGICAL GROUP NV Business Overview & Revenue Model

Company Description

AMG Critical Materials NV engages in the manufacture and market of specialty metals and metallurgical vacuum furnace systems and provision of engineering services. It operates through the following segments: AGM Clean Energy Materials, AGM Critical Minerals, and AGM Critical Materials Technologies. The AGM Clean Energy Materials segment combines recycling and mining operations, producing materials for infrastructure, and energy storage solutions while reducing the CO2 footprint of both suppliers and customers. The AGM Critical Minerals segment consists of mineral processing operations in graphite, silicon metal, and antimony. The AGM Critical Materials Technologies segment refers to vacuum furnace technology line with high-purity materials serving global leaders in the aerospace sector. The company was founded by Heinz C. Schimmelbusch on November 21, 2006 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

AMG generates revenue through multiple streams, primarily by selling its specialized alloys, advanced materials, and critical metals to a variety of industrial sectors. The company's Advanced Materials segment contributes significantly to revenue through the production of high-performance materials that are essential for aerospace and automotive applications. The Critical Materials segment also plays a vital role, as it supplies essential metals that are crucial for energy and technology applications. Additionally, AMG benefits from strategic partnerships with key industries and customers, which help secure long-term contracts and stabilize revenue. Market dynamics, such as the demand for high-performance materials and the global push for sustainable solutions, further enhance AMG's earning potential.

AMG ADVANCED METALLURGICAL GROUP NV Financial Statement Overview

Summary

Income statement shows modest TTM revenue growth (+3.5%) and improved gross/EBIT/EBITDA margins, but profitability remains weak (net margin 0.68%). Balance sheet leverage is still elevated (debt-to-equity 1.42) with low ROE (1.96%). Cash flow is the biggest drag: negative free cash flow with a 27.8% decline and weak cash conversion (operating cash flow to net income 0.10).

Income Statement

AMG Advanced Metallurgical Group NV has shown a positive revenue growth rate of 3.5% in the TTM (Trailing-Twelve-Months) period, indicating a recovery from the previous year's decline. The gross profit margin has improved to 18.5%, reflecting better cost management. However, the net profit margin remains low at 0.68%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved, indicating operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has decreased slightly to 1.42 in the TTM period, showing a reduction in leverage but still indicating a high level of debt compared to equity. The return on equity is low at 1.96%, reflecting limited profitability relative to shareholder investment. The equity ratio stands at 26.2%, suggesting a moderate level of financial stability.

Cash Flow

AMG's cash flow situation is concerning, with a negative free cash flow and a decline in free cash flow growth by 27.8% in the TTM period. The operating cash flow to net income ratio is low at 0.10, indicating limited cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting challenges in maintaining positive cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.62B	1.44B	1.63B	1.64B	1.20B	937.12M
Gross Profit	329.47M	228.03M	425.70M	409.49M	208.24M	112.65M
EBITDA	196.66M	118.66M	297.84M	352.10M	91.46M	31.78M
Net Income	36.93M	-33.35M	101.32M	187.59M	13.77M	-42.46M
Balance Sheet
Total Assets	2.23B	2.04B	1.96B	1.87B	1.70B	1.44B
Cash, Cash Equivalents and Short-Term Investments	219.00M	294.25M	345.37M	346.11M	337.88M	207.37M
Total Debt	822.08M	814.62M	721.86M	731.76M	766.32M	756.10M
Total Liabilities	1.63B	1.49B	1.36B	1.35B	1.41B	1.30B
Stockholders Equity	584.78M	506.08M	561.78M	490.55M	268.43M	115.48M
Cash Flow
Free Cash Flow	-15.40M	-70.15M	69.62M	-6.95M	-71.45M	-104.08M
Operating Cash Flow	54.91M	37.52M	223.00M	167.57M	90.79M	19.62M
Investing Cash Flow	-88.06M	-147.04M	-185.34M	-103.10M	-62.95M	-37.92M
Financing Cash Flow	-26.10M	71.59M	-41.54M	-49.29M	111.07M	-9.17M

AMG ADVANCED METALLURGICAL GROUP NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:AMG, the sentiment is Positive. The current price of 27.42 is below the 20-day moving average (MA) of 30.90, below the 50-day MA of 28.06, and above the 200-day MA of 24.26, indicating a bullish trend. The MACD of 2.74 indicates Negative momentum. The RSI at 79.57 is Negative, neither overbought nor oversold. The STOCH value of 94.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:AMG.

AMG ADVANCED METALLURGICAL GROUP NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MT	73 Outperform	€31.34B	14.11	4.81%	1.24%	-5.35%	―
HOLCO	66 Neutral	€76.57M	16.91	7.57%	7.70%	4.14%	-29.16%
APAM	65 Neutral	€2.59B	-321.81	-0.24%	5.41%	-2.24%	-102.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMG	53 Neutral	€1.15B	37.62	6.84%	1.46%	9.94%	―
AVTX	46 Neutral	€182.24M	-3.51	-26.08%	―	-12.31%	23.77%
OCI	41 Neutral	€647.99M	―	―	229.25%	―	―