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SSAB Corporation (SE:SSAB.A)
:SSAB.A

SSAB Corporation (SSAB.A) AI Stock Analysis

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SSAB Corporation

(LSE:SSAB.A)

Rating:70Outperform
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 (SSAB.A) vs. iShares MSCI Sweden ETF (EWD)

SSAB Corporation Business Overview & Revenue Model

Company DescriptionSSAB 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 MoneySSAB 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
61
Positive
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
75
Positive
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
68
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
101.79B103.45B119.49B124.98B95.89B65.39B
Gross Profit
12.74B14.52B22.55B-2.12B23.47B3.78B
EBIT
6.14B7.86B16.47B-4.24B18.84B-312.00M
EBITDA
10.28B13.29B21.26B32.62B22.21B3.51B
Net Income Common Stockholders
5.08B6.52B13.03B-10.88B14.66B-490.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.83B27.81B28.92B24.90B13.80B7.05B
Total Assets
104.26B110.73B107.84B109.71B112.02B88.60B
Total Debt
9.66B10.15B10.62B10.68B12.51B17.45B
Net Debt
-14.17B-17.66B-18.29B-14.22B-1.29B10.39B
Total Liabilities
35.91B39.71B39.89B42.52B38.51B34.51B
Stockholders Equity
68.29B70.97B67.87B67.12B73.48B53.99B
Cash FlowFree Cash Flow
1.89B3.68B14.91B13.21B11.49B2.16B
Operating Cash Flow
9.34B11.90B21.47B18.16B14.87B4.37B
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-5.03B685.00M

SSAB Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.70
Price Trends
50DMA
58.96
Positive
100DMA
57.82
Positive
200DMA
52.58
Positive
Market Momentum
MACD
0.30
Negative
RSI
54.32
Neutral
STOCH
77.69
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
kr59.90B11.927.27%4.29%-11.28%-56.26%
51
Neutral
$2.03B-1.13-21.36%3.65%2.87%-30.54%
kr25.65B13.826.58%3.41%
kr87.17B7.6617.43%2.53%
kr13.26B13.3010.64%2.50%
kr76.69B
kr88.72B24.053.50%2.40%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SSAB.A
SSAB Corporation
60.70
4.13
7.30%
GB:0GWS
BillerudKorsnas AB
102.71
4.20
4.26%
GB:0YAL
Boliden AB
309.99
-43.95
-12.42%
GB:0R9X
Granges AB
128.40
-6.54
-4.85%
GB:0M32
Stora Enso Oyj
145.99
0.00
0.00%
GB:0MCK
Svenska Cellulosa SCA AB
125.00
-28.48
-18.56%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.