Aperam S.A. (APAM) AI Stock Analysis

• Market Cap: €2.43B
• Dividend Yield: 5.42%
• Average Volume (3M): 246.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -2.24%
• EPS Growth: -102.76%
• Country: NL
• Employees: 12,007
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.28
• Shares Outstanding: 73,184,570
• 10 Day Avg. Volume: 264,212
• 30 Day Avg. Volume: 246,236
• PEG Ratio: 0.57
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 15.99
• 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: €34.58
• Price Target Upside: 1.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €37.00 ▲(8.38% Upside)

Aperam S.A. scores moderately due to its stable financial performance and positive technical indicators. The strong cash flow management and operational efficiency are significant strengths. However, the negative net income and high P/E ratio are notable concerns. The high dividend yield provides some support to the valuation.

Positive Factors

Operational Efficiency

Operational efficiency indicates that Aperam can effectively manage its resources, which is crucial for maintaining profitability and competitiveness in the steel industry.

Cash Flow Management

Strong cash flow management ensures Aperam can fund operations, invest in growth opportunities, and withstand market fluctuations, supporting long-term stability.

Moderate Leverage

Moderate leverage allows Aperam to maintain financial flexibility and invest in strategic initiatives without excessive debt burden, supporting sustainable growth.

Negative Factors

Revenue Decline

Declining revenue suggests potential issues in market demand or pricing power, which could impact Aperam's ability to grow and maintain profitability.

Negative Net Income

Negative net income reflects challenges in achieving profitability, which could hinder Aperam's ability to reinvest in the business and reward shareholders.

Decreased Return on Equity

A declining return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and capital allocation.

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 sale of its stainless and specialty steel products. The company operates a vertically integrated model, which allows it to control the production process from raw materials to finished products. Key revenue streams include the sale of stainless steel flat products, which are a significant portion of its business, as well as long products and electrical steel. Additionally, Aperam benefits from strategic partnerships and contracts with major clients in various sectors, which provide a steady demand for its products. Fluctuations in raw material prices, particularly nickel and chromium, also play a crucial role in the company's profitability, as these metals are essential for stainless steel production. The company’s focus on sustainability and innovation further enhances its market position, potentially leading to new revenue opportunities.

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	6.19B	6.25B	6.59B	8.16B	5.10B	3.62B
Gross Profit	6.19B	408.00M	379.00M	1.18B	1.23B	368.00M
EBITDA	354.00M	354.00M	366.00M	959.00M	1.20B	392.00M
Net Income	-8.00M	231.00M	203.00M	625.00M	968.00M	175.00M
Balance Sheet
Total Assets	5.30B	5.84B	6.21B	6.26B	5.91B	3.97B
Cash, Cash Equivalents and Short-Term Investments	320.00M	216.00M	443.00M	457.00M	524.00M	358.00M
Total Debt	1.36B	760.00M	934.00M	925.00M	990.00M	425.00M
Total Liabilities	2.09B	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	295.00M	114.00M	170.00M	346.00M	398.00M	194.00M
Operating Cash Flow	430.00M	280.00M	471.00M	642.00M	550.00M	303.00M
Investing Cash Flow	-563.00M	-155.00M	-303.00M	-297.00M	-183.00M	-108.00M
Financing Cash Flow	259.00M	-336.00M	-152.00M	-419.00M	-197.00M	-185.00M

Aperam S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.14
• 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 34.14 is above the 20-day moving average (MA) of 33.34, above the 50-day MA of 31.96, and above the 200-day MA of 27.98, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.42 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
MT	73 Outperform	€28.33B	12.76	4.81%	1.24%	-5.35%	―
APAM	65 Neutral	€2.43B	-308.96	-0.24%	5.42%	-2.24%	-102.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMG	55 Neutral	€783.81M	25.70	6.84%	1.52%	9.94%	―
OCI	41 Neutral	€622.69M	-3.06	―	236.39%	―	―