Aperam S.A. (APAM) AI Stock Analysis

• Market Cap: €2.02B
• Dividend Yield: 6.78%
• Average Volume (3M): 145.00K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.31
• Revenue Growth: -0.46%
• EPS Growth: 182.29%
• Country: NL
• Employees: 12,007
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.25
• Shares Outstanding: 73,184,570
• 10 Day Avg. Volume: 170,849
• 30 Day Avg. Volume: 145,005
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €27.63
• Price Target Upside: -2.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: €29.00 ▲(2.18% Upside)

Aperam S.A.'s overall stock score is driven by its strong balance sheet and attractive valuation, which are offset by challenges in revenue growth and cash flow generation. The technical analysis indicates a neutral market sentiment, contributing to a moderate overall score.

Aperam S.A. Business Overview & Revenue Model

Company Description

Aperam S.A. is a global leader in the production of stainless and specialty steel, with operations primarily based in Europe and South America. The company operates in two main segments: Steel and Services, and Alloys and Specialties. Aperam's core products include flat and long stainless steel products, electrical steel, and various specialty alloys, serving diverse industries such as automotive, construction, and energy.

How the Company Makes Money

Aperam generates revenue primarily through the sale of its steel products, which includes stainless steel flat and long products, as well as specialty alloys. The company's revenue model is based on direct sales to customers in various sectors, including automotive, construction, and engineering. Key revenue streams involve the production and distribution of stainless steel, with additional income from value-added services such as processing and logistics. Aperam also benefits from strategic partnerships with various players in the industry, which enhance its market reach and customer base. Factors contributing to its earnings include global steel demand, pricing trends in raw materials, and operational efficiencies in its manufacturing processes.

Aperam S.A. Financial Statement Overview

Summary

Aperam S.A. exhibits a mixed financial performance. The income statement shows challenges with revenue growth and modest profitability. The balance sheet is notably strong, with no debt and a high equity ratio, indicating financial stability. Cash flow generation has decreased, raising concerns about future investments and growth. Overall, while the company is financially stable with strong equity, it faces challenges in revenue growth and cash flow generation.

Income Statement

Aperam S.A.'s revenue has seen a decline over the recent years, notably from $8.16 billion in 2022 to $6.26 billion in 2024. Despite this, the company managed to improve its EBIT and EBITDA margins in 2024, suggesting some operational efficiency. However, the net profit margin in 2024 was 3.69%, which reflects a modest profitability level. The overall revenue growth rate has been negative, indicating challenges in top-line growth.

Balance Sheet

The company's debt-to-equity ratio improved significantly, with total debt reduced to zero in 2024, enhancing financial stability. The equity ratio stands strong at around 69.3% for 2024, indicating a solid equity position relative to total assets. Return on equity decreased but remains positive, reflecting some profitability despite lower net income. The overall balance sheet reflects a strong position with reduced leverage and a robust equity base.

Cash Flow

Free cash flow decreased from $346 million in 2022 to $125 million in 2024, indicating challenges in generating excess cash. Operating cash flow remains positive, but the decline in free cash flow growth is a concern. The free cash flow to net income ratio in 2024 shows that cash generation needs improvement to support sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28B	6.25B	6.59B	8.16B	5.10B	3.62B
Gross Profit	6.28B	408.00M	379.00M	1.18B	1.23B	368.00M
EBITDA	387.00M	354.00M	293.00M	959.00M	1.20B	392.00M
Net Income	192.00M	231.00M	203.00M	625.00M	968.00M	175.00M
Balance Sheet
Total Assets	5.35B	5.84B	6.21B	6.26B	5.91B	3.97B
Cash, Cash Equivalents and Short-Term Investments	239.00M	216.00M	443.00M	457.00M	524.00M	358.00M
Total Debt	0.00	760.00M	934.00M	925.00M	990.00M	425.00M
Total Liabilities	2.15B	2.47B	2.76B	2.87B	2.96B	1.76B
Stockholders Equity	3.19B	3.35B	3.44B	3.38B	2.94B	2.20B
Cash Flow
Free Cash Flow	152.00M	114.00M	170.00M	346.00M	398.00M	194.00M
Operating Cash Flow	296.00M	280.00M	471.00M	642.00M	550.00M	303.00M
Investing Cash Flow	-558.00M	-155.00M	-303.00M	-297.00M	-183.00M	-108.00M
Financing Cash Flow	233.00M	-336.00M	-152.00M	-419.00M	-197.00M	-185.00M

Aperam S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:APAM, the sentiment is Positive. The current price of 28.38 is above the 20-day moving average (MA) of 27.04, above the 50-day MA of 26.53, and above the 200-day MA of 26.54, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 79.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:APAM.

Aperam S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APAM	70 Outperform	€2.02B	10.68	5.98%	6.78%	-0.46%	182.29%
MT	68 Neutral	€25.82B	10.53	4.59%	1.43%	-5.35%	―
AMG	66 Neutral	€865.06M	97.48	1.81%	0.69%	5.17%	―
OCI	46 Neutral	€843.18M	-4.14	222.01%	71.01%	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%