SSAB Corporation (SSAB.B) AI Stock Analysis

• Market Cap: kr61.40B
• Dividend Yield: 4.42%
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.20
• Revenue Growth: -11.28%
• EPS Growth: -56.26%
• Country: SE
• Employees: 14,637
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 1.13
• Shares Outstanding: 700,651,370
• 10 Day Avg. Volume: 3,472,553
• 30 Day Avg. Volume: 3,692,861
• 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: kr73.00
• Price Target Upside: 24.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

SSAB Corporation's stock score reflects a balanced view of its financial stability and attractive valuation, offset by moderate technical indicators. The company benefits from a strong balance sheet and solid cash flow generation, though revenue growth challenges remain. The stock's valuation is compelling, supported by a high dividend yield, but technical signals suggest cautious optimism in the near term.

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 primarily through the manufacturing and sale of steel products. The company's key revenue streams include the production and distribution of high-strength steels, which are used in demanding industries like automotive and construction. SSAB's revenue is supported by its extensive product portfolio, which includes high-strength structural steels and wear-resistant steels. The company also benefits from strategic partnerships and collaborations with major industrial players, enhancing its market reach and innovation capacity. Additionally, SSAB is focused on sustainability and efficiency, investing in technology to produce fossil-free steel, which could become a significant revenue driver as the market shifts towards environmentally friendly solutions.

SSAB Corporation Financial Statement Overview

Summary

SSAB Corporation exhibits financial stability with a robust balance sheet and effective cash generation capabilities. However, the income statement reflects pressures on revenue and profitability, with declining growth rates and margins that need improvement. The company's low leverage and strong equity position provide a cushion against market volatility, but strategic measures are necessary to boost revenue and enhance profitability in the competitive steel industry.

Income Statement

The TTM (Trailing-Twelve-Months) income statement shows a decline in total revenue and net income compared to the previous year, indicating challenges in maintaining growth. Gross profit margin is at 12.52%, and net profit margin is at 4.98%, both of which are relatively moderate for the steel industry. The EBIT margin of 6.03% and EBITDA margin of 10.10% suggest operational efficiency but highlight the need for cost control and revenue growth to enhance profitability.

Balance Sheet

SSAB Corporation's balance sheet reveals a strong equity position with an equity ratio of 65.51%, indicating financial stability. The debt-to-equity ratio is 0.14, which is low, showcasing prudent debt management. Return on equity (ROE) is 7.43%, reflecting moderate returns for shareholders. The solid equity base and low leverage suggest resilience against market fluctuations.

Cash Flow

The cash flow statements indicate a decrease in free cash flow from the previous year, with a free cash flow of SEK 1.89 billion in the TTM period. The operating cash flow to net income ratio is 1.84, showing strong cash generation ability. However, the negative growth in free cash flow signals potential challenges in sustaining cash generation amidst capital expenditures.

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: Neutral
• Last Price: 58.82
• 50DMA: Negative
• 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.B, the sentiment is Neutral. The current price of 58.82 is above the 20-day moving average (MA) of 57.54, below the 50-day MA of 60.26, and above the 200-day MA of 50.83, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	67 Neutral	kr61.40B	12.19	7.27%	4.42%	-11.28%	-56.26%
Sector *	49 Neutral	$1.96B	-1.15	-21.28%	3.71%	1.17%	-30.86%