Aperam S.A. (APAM) AI Stock Analysis

• Market Cap: €1.97B
• Dividend Yield: 6.22%
• Average Volume (3M): 134.56K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.18
• Revenue Growth: -1.84%
• EPS Growth: 345.98%
• Country: NL
• Employees: 12,007
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): >-0.01
• Shares Outstanding: 73,184,570
• 10 Day Avg. Volume: 130,194
• 30 Day Avg. Volume: 134,562
• PEG Ratio: -0.11
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.40
• 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: €29.53
• Price Target Upside: 6.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: ―

Aperam S.A.'s overall stock score reflects a solid financial foundation with a strong balance sheet, marked by zero debt and a high equity ratio. However, challenges in revenue growth and reduced cash flow generation weigh negatively. The technical analysis indicates bearish momentum, although the valuation is attractive with a low P/E ratio and high dividend yield, providing some support to the stock's appeal.

Aperam S.A. Business Overview & Revenue Model

Company Description

Aperam S.A., together with its subsidiaries, engages in the production and sale of stainless and specialty steel products worldwide. It operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties. The company offers range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. It serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. The company distributes its products through a network of service centers, transformation facilities, and sales offices. Aperam S.A. was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg.

How the Company Makes Money

Aperam generates revenue primarily through the production and sale of stainless and specialty steel products. The company's revenue streams are largely derived from its three main business segments: Stainless & Electrical Steel, Services & Solutions, and Alloys & Specialties. The Stainless & Electrical Steel segment involves the manufacturing and sale of stainless steel and electrical steel products. The Services & Solutions segment offers value-added services such as cutting, finishing, and distribution of steel products to meet specific customer requirements. The Alloys & Specialties segment focuses on producing high-performance alloys for industries requiring advanced materials. Aperam's earnings are further supported by its strategic partnerships, strong distribution network, and focus on innovation and sustainable production practices.

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	6.26B	6.25B	6.59B	8.16B	5.10B	3.62B
Gross Profit	4.74B	408.00M	379.00M	1.18B	1.23B	368.00M
EBITDA	353.00M	354.00M	293.00M	959.00M	1.20B	392.00M
Net Income	232.00M	231.00M	203.00M	625.00M	968.00M	175.00M
Balance Sheet
Total Assets	5.50B	5.84B	6.21B	6.26B	5.91B	3.97B
Cash, Cash Equivalents and Short-Term Investments	185.00M	216.00M	443.00M	457.00M	524.00M	358.00M
Total Debt	0.00	0.00	934.00M	925.00M	990.00M	425.00M
Total Liabilities	2.16B	2.47B	2.76B	2.87B	2.96B	1.76B
Stockholders Equity	3.32B	3.35B	3.44B	3.38B	2.94B	2.20B
Cash Flow
Free Cash Flow	105.00M	114.00M	170.00M	346.00M	398.00M	194.00M
Operating Cash Flow	236.00M	280.00M	471.00M	642.00M	550.00M	303.00M
Investing Cash Flow	-544.00M	-155.00M	-303.00M	-297.00M	-183.00M	-108.00M
Financing Cash Flow	296.00M	-336.00M	-152.00M	-419.00M	-197.00M	-185.00M

Aperam S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 27.74 is above the 20-day moving average (MA) of 27.07, above the 50-day MA of 26.60, and above the 200-day MA of 26.50, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 81.84 is Negative, 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	€1.97B	8.64	6.92%	6.22%	-1.84%	345.98%
Sector *	62 Neutral	$9.96B	9.44	-0.15%	2.98%	1.92%	-35.27%
0LO9		€664.92M	―	-2.17%	1.62%	―	―
0RP9		€21.82B	16.98	2.57%	1.80%	―	―