SSAB Corporation (SSAB.B) AI Stock Analysis

• Market Cap: kr53.36B
• Dividend Yield: 4.91%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.17
• Revenue Growth: -10.87%
• EPS Growth: -55.90%
• Country: SE
• Employees: 14,637
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Steel
• EPS (TTM): 1.86
• Shares Outstanding: 700,651,370
• 10 Day Avg. Volume: 2,283,903
• 30 Day Avg. Volume: 2,411,956
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr65.50
• Price Target Upside: 23.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: kr58.00 ▲(9.19% Upside)

SSAB Corporation's stock score is primarily influenced by its mixed financial performance and bearish technical indicators. While the company has a strong balance sheet, declining margins and negative free cash flow are concerns. The valuation is reasonable, with a fair P/E ratio and attractive dividend yield, but technical analysis suggests caution due to bearish trends.

SSAB Corporation Business Overview & Revenue Model

Company Description

SSAB Corporation (SSAB.B) is a leading global steel company headquartered in Sweden, specializing in the production of high-strength steel and value-added steel products. The company operates through multiple segments, including Steel Solutions, which focuses on advanced high-strength steels, and the Special Steels segment that caters to demanding applications in various industries such as automotive, construction, and machinery. SSAB is known for its commitment to sustainability and innovation, offering products that enhance efficiency and reduce environmental impact.

How the Company Makes Money

SSAB generates revenue primarily through the sale of steel products, which include hot-rolled, cold-rolled, and coated steel sheets, as well as various specialty steels. The company's revenue model is largely based on the direct sale of these products to a diverse range of industries, including automotive, construction, and engineering. Key revenue streams include bulk sales to large industrial clients, customized solutions for specific applications, and the provision of related services such as processing and logistics. Additionally, SSAB engages in strategic partnerships with automotive manufacturers and suppliers to develop advanced steel solutions tailored for electric vehicles and other innovative applications, which further contribute to its earnings. The company also benefits from global demand for high-strength steel, especially in regions with growing infrastructure and automotive production.

SSAB Corporation Financial Statement Overview

Summary

SSAB Corporation's financial performance is mixed. The income statement shows declining margins and revenue growth challenges, with a net profit margin decrease to 4.55%. The balance sheet is strong with low debt, but ROE has decreased. Cash flow issues are significant, with negative free cash flow indicating potential liquidity concerns.

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	99.14B	103.45B	119.49B	124.98B	95.89B	65.39B
Gross Profit	11.79B	14.52B	22.55B	-2.12B	23.47B	3.78B
EBITDA	9.40B	13.29B	21.26B	32.62B	22.21B	3.51B
Net Income	4.51B	6.52B	13.03B	-10.88B	14.66B	-490.00M
Balance Sheet
Total Assets	102.49B	110.73B	107.84B	109.71B	112.02B	88.60B
Cash, Cash Equivalents and Short-Term Investments	20.30B	27.81B	28.92B	24.90B	13.80B	7.05B
Total Debt	9.41B	10.15B	10.62B	10.68B	12.51B	17.45B
Total Liabilities	35.45B	39.71B	39.89B	42.52B	38.51B	34.51B
Stockholders Equity	67.00B	70.97B	67.87B	67.12B	73.48B	53.99B
Cash Flow
Free Cash Flow	-914.00M	3.68B	14.91B	13.21B	11.49B	2.16B
Operating Cash Flow	9.04B	11.90B	21.47B	18.16B	14.87B	4.37B
Investing Cash Flow	-7.71B	-6.61B	-5.29B	-3.89B	-2.27B	-2.18B
Financing Cash Flow	-5.31B	-5.20B	-12.77B	-723.00M	-5.03B	685.00M

SSAB Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SSAB.B, the sentiment is Negative. The current price of 53.12 is below the 20-day moving average (MA) of 54.08, below the 50-day MA of 56.34, and below the 200-day MA of 54.82, indicating a bearish trend. The MACD of -0.98 indicates Negative momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SSAB.B.

SSAB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSAB.B	63 Neutral	kr53.36B	11.74	6.67%	4.91%	-10.87%	-55.90%
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
0GWS	―	kr21.47B	12.10	6.73%	―	―	―
0YAL	―	kr94.08B	11.55	12.34%	―	―	―
0R7O	―	kr29.69B	14.29	14.46%	―	―	―
0M32	―	kr82.50B	―		―	―	―
0KCK	―	kr82.43B	―		―	―	―