SSAB Corporation (SSAB.A) AI Stock Analysis

• Market Cap: kr59.90B
• Dividend Yield: 4.29%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.09
• Revenue Growth: -11.28%
• EPS Growth: -56.26%
• Country: SE
• Employees: 14,637
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 1.13
• Shares Outstanding: 295,966,340
• 10 Day Avg. Volume: 1,551,004
• 30 Day Avg. Volume: 1,150,828
• PEG Ratio: -0.52
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.58
• 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: kr65.83
• Price Target Upside: 8.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: kr68.00 ▲(12.03%Upside)

SSAB Corporation's overall stock score of 70 reflects its strong balance sheet and attractive valuation. While financial performance shows some weaknesses due to declining revenues, the company's operational efficiency and cash flow stability provide a foundation for potential recovery. The technical indicators support a moderately positive outlook, reinforcing the stock's resilience in a challenging market environment.

SSAB Corporation Business Overview & Revenue Model

Company Description

SSAB AB (publ) produces and sells steel products in the United States, Sweden, Finland, Germany, Denmark, and internationally. It operates through five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction. The SSAB Special Steels segment offers quenched and tempered steels, and hot-rolled advanced high-strength steel products. The SSAB Europe segment provides strip, plate, and tubular products. The SSAB Americas segment offers heavy steel plates. The Tibnor segment distributes a range of steel and non-ferrous metals in the Nordic region and the Baltics. The Ruukki Construction segment produces and sells building and construction products and services for residential and non-residential construction. The company markets its steel products under the Strenx, Hardox, Docol, GreenCoat, Toolox, Armox, Duroxite, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, SSAB Weathering and Cor-Ten, and SSAB Multisteel brands. It serves the heavy transport, construction, automotive, industrial, construction machinery, energy, material handling, and service center industries. The company has a collaboration agreement with Faurecia S.E. to deliver fossil-free steel for automotive seat structures. SSAB AB (publ) was founded in 1878 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

SSAB Corporation generates revenue through the production and sale of steel products across its various business segments. The company's primary revenue streams include the sale of high-strength and specialty steel products, which are used in demanding applications across multiple industries. SSAB Special Steels focuses on advanced high-strength steels and quenched and tempered steels, catering to sectors requiring durability and performance. SSAB Europe produces strip, plate, and tubular products, serving the European market. SSAB Americas specializes in the production of heavy plate products for industries in North and South America. Significant partnerships with key players in the automotive, construction, and heavy machinery sectors contribute to SSAB's earnings by providing a stable demand for its products. Additionally, SSAB's investment in innovative technologies and sustainable practices, such as fossil-free steel production, positions it competitively in the market, enhancing its revenue potential.

SSAB Corporation Financial Statement Overview

Summary

SSAB Corporation faces challenges with declining revenue and profit margins in a tough market. Despite this, the company's operational efficiency and strong balance sheet provide stability. The healthy cash flow situation, although weakened, still supports the company’s operations and strategic initiatives. Overall, SSAB Corporation demonstrates resilience with potential for recovery if market conditions improve.

Income Statement

SSAB Corporation showed a mixed performance in its income statement. The gross profit margin is currently 12.52% for TTM, reflecting a significant decrease from previous periods, mainly due to declining revenue and gross profits. The net profit margin also declined to 4.98% TTM. Revenue growth has been negative, indicating a challenging market environment. However, EBITDA margin remains relatively strong at 10.10% TTM, showcasing operational efficiency amidst the downturn.

Balance Sheet

SSAB Corporation's balance sheet remains strong with a debt-to-equity ratio of 0.14, indicating low leverage and financial stability. The equity ratio is high at 65.51%, reflecting a solid equity base and low debt levels. The return on equity is slightly lower at 7.43% TTM, which shows profitability challenges but remains positive.

Cash Flow

The cash flow statement highlights a decline in free cash flow growth, which is concerning. However, the company maintains a healthy operating cash flow to net income ratio of 1.84 TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is 0.37, suggesting adequate cash flow to cover net income, albeit reduced from previous years.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
101.79B	103.45B	119.49B	124.98B	95.89B	65.39B
	Gross Profit
12.74B	14.52B	22.55B	-2.12B	23.47B	3.78B
	EBIT
6.14B	7.86B	16.47B	-4.24B	18.84B	-312.00M
	EBITDA
10.28B	13.29B	21.26B	32.62B	22.21B	3.51B
	Net Income Common Stockholders
5.08B	6.52B	13.03B	-10.88B	14.66B	-490.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.83B	27.81B	28.92B	24.90B	13.80B	7.05B
	Total Assets
104.26B	110.73B	107.84B	109.71B	112.02B	88.60B
	Total Debt
9.66B	10.15B	10.62B	10.68B	12.51B	17.45B
	Net Debt
-14.17B	-17.66B	-18.29B	-14.22B	-1.29B	10.39B
	Total Liabilities
35.91B	39.71B	39.89B	42.52B	38.51B	34.51B
	Stockholders Equity
68.29B	70.97B	67.87B	67.12B	73.48B	53.99B
Cash Flow		Free Cash Flow
1.89B	3.68B	14.91B	13.21B	11.49B	2.16B
	Operating Cash Flow
9.34B	11.90B	21.47B	18.16B	14.87B	4.37B
	Investing Cash Flow
-6.49B	-6.61B	-5.29B	-3.89B	-2.27B	-2.18B
	Financing Cash Flow
-8.77B	-5.20B	-12.77B	-723.00M	-5.03B	685.00M

SSAB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.70
• 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 SE:SSAB.A, the sentiment is Positive. The current price of 60.7 is above the 20-day moving average (MA) of 59.63, above the 50-day MA of 58.96, and above the 200-day MA of 52.58, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 77.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SSAB.A.

SSAB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSAB.A	70 Outperform	kr59.90B	11.92	7.27%	4.29%	-11.28%	-56.26%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%
0GWS		kr25.65B	13.82	6.58%	3.41%	―	―
0YAL		kr87.17B	7.66	17.43%	2.53%	―	―
0R9X		kr13.26B	13.30	10.64%	2.50%	―	―
0M32		kr76.69B	―		―	―	―
0MCK		kr88.72B	24.05	3.50%	2.40%	―	―