SSAB Corporation (SSAB.B) AI Stock Analysis

• Market Cap: kr57.66B
• Dividend Yield: 3.97%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.31
• Revenue Growth: -8.04%
• EPS Growth: -37.18%
• Country: SE
• Employees: 14,637
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.49
• Shares Outstanding: 700,651,370
• 10 Day Avg. Volume: 4,025,900
• 30 Day Avg. Volume: 4,003,338
• PEG Ratio: -0.14
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 11.89
• 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: kr70.00
• Price Target Upside: 5.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: kr71.00 ▲(7.25% Upside)

SSAB Corporation's stock score is driven primarily by its stable balance sheet and strong technical indicators, which are offset by challenges in revenue growth, profitability, and cash flow management. The valuation is fair, but the overbought technical indicators suggest caution for short-term investors.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low leverage provides SSAB with financial flexibility to navigate market fluctuations and invest in growth opportunities.

Operational Efficiency

Positive EBIT and EBITDA margins indicate SSAB's ability to manage costs effectively, supporting long-term profitability despite revenue challenges.

Diverse Revenue Streams

Diverse revenue streams from both products and services help stabilize SSAB's income and reduce reliance on any single market segment.

Negative Factors

Declining Revenue Growth

Declining revenue growth may limit SSAB's ability to expand market share and invest in new projects, affecting long-term competitiveness.

Profitability Pressure

Decreasing profit margins suggest increasing cost pressures or pricing challenges, which could impact SSAB's long-term financial health.

Cash Flow Management Issues

Challenges in cash flow management could hinder SSAB's ability to fund operations and strategic initiatives, affecting future growth prospects.

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 generates revenue primarily through the production and sale of steel products, which are sold to a diverse range of industries. The company’s key revenue streams include the sale of high-strength steel plates, sheets, and coils, often tailored to meet specific customer requirements. SSAB also earns income from value-added services such as processing, logistics, and technical support, which enhance the appeal of its core products. Additionally, SSAB benefits from strategic partnerships with key players in various sectors, which help to secure long-term contracts and promote its innovative steel solutions. Factors contributing to SSAB's earnings include the global demand for high-performance steel products, fluctuations in raw material prices, and the ability to leverage technological advancements in steel production.

SSAB Corporation Financial Statement Overview

Summary

SSAB Corporation's financial performance presents a mixed picture. The income statement shows declining margins and revenue growth challenges. The balance sheet is strong with low leverage, but the cash flow statement highlights significant issues with free cash flow, which could impact liquidity if not managed. The company needs to focus on improving profitability and cash flow generation to ensure long-term stability in the cyclical steel industry.

Income Statement

SSAB Corporation's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth by 2.6%, reflecting challenges in maintaining top-line growth. Gross profit margin decreased to 11.89% from 14.04% in the previous year, and net profit margin also declined to 4.55% from 6.30%. However, the company maintains positive EBIT and EBITDA margins, indicating operational efficiency. The steel industry is cyclical, and these fluctuations are not uncommon, but the declining margins suggest potential pressure on profitability.

Balance Sheet

The balance sheet of SSAB Corporation is relatively strong with a low debt-to-equity ratio of 0.14, indicating prudent financial leverage. The return on equity has decreased to 6.58% from 9.19% in the previous year, reflecting reduced profitability. The equity ratio remains healthy, suggesting a stable capital structure. Overall, the company maintains a solid financial position, but the decline in ROE could be a concern if it persists.

Cash Flow

SSAB Corporation's cash flow statement reveals challenges, particularly with free cash flow, which turned negative in the TTM period. The free cash flow growth rate is significantly negative at -148.26%, and the free cash flow to net income ratio is also negative, indicating cash flow issues. However, the operating cash flow remains positive, providing some cushion. The negative free cash flow suggests potential liquidity concerns if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.73B	103.45B	119.49B	124.98B	95.89B	65.39B
Gross Profit	12.40B	14.52B	22.55B	-2.12B	23.47B	3.78B
EBITDA	10.01B	13.29B	21.26B	32.62B	22.21B	3.51B
Net Income	4.95B	6.52B	13.03B	-10.88B	14.66B	-490.00M
Balance Sheet
Total Assets	104.51B	110.73B	107.84B	109.71B	112.02B	88.60B
Cash, Cash Equivalents and Short-Term Investments	20.29B	27.81B	28.92B	24.90B	13.80B	7.05B
Total Debt	9.26B	10.15B	10.62B	10.68B	12.51B	17.45B
Total Liabilities	36.40B	39.71B	39.89B	42.52B	38.51B	34.51B
Stockholders Equity	68.07B	70.97B	67.87B	67.12B	73.48B	53.99B
Cash Flow
Free Cash Flow	-907.00M	3.68B	14.91B	13.21B	11.49B	2.16B
Operating Cash Flow	10.18B	11.90B	21.47B	18.16B	14.87B	4.37B
Investing Cash Flow	-8.75B	-6.61B	-5.29B	-3.89B	-2.27B	-2.18B
Financing Cash Flow	-4.05B	-5.20B	-12.77B	-723.00M	-5.03B	685.00M

SSAB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SSAB.B, the sentiment is Positive. The current price of 66.2 is above the 20-day moving average (MA) of 60.62, above the 50-day MA of 59.36, and above the 200-day MA of 58.40, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 94.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SSAB.B.

SSAB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPOL.B	74 Outperform	kr29.69B	15.17	13.67%	4.87%	-4.11%	-17.57%
BOL	72 Outperform	kr116.79B	14.16	11.99%	―	8.30%	-8.62%
BILL	70 Outperform	kr21.65B	17.88	4.43%	3.75%	2.55%	98.53%
SSAB.B	65 Neutral	kr57.66B	11.58	7.29%	3.97%	-8.04%	-37.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STE.R	49 Neutral	kr87.08B	―	―	3.48%	3.43%	78.62%
STE.A	49 Neutral	kr87.08B	―	―	2.43%	3.43%	78.62%