SSAB Corporation (SSAB.B) AI Stock Analysis

• Market Cap: kr59.55B
• Dividend Yield: 4.36%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.25
• 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: 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: kr70.00
• Price Target Upside: 15.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: kr70.00 ▲(15.47% Upside)

SSAB Corporation's overall stock score reflects a balance of mixed financial performance and strong technical indicators. The company's solid balance sheet and reasonable valuation are positive factors, but challenges in profitability and cash flow generation need attention. The technical analysis suggests bullish momentum, though caution is advised due to overbought signals. The absence of earnings call and corporate events data limits further insights.

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 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: Positive
• Last Price: 60.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 60.62 is above the 20-day moving average (MA) of 60.44, above the 50-day MA of 56.39, and above the 200-day MA of 56.95, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.81 is Neutral, 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	―	kr29.38B	15.01	13.67%	4.84%	-4.11%	-17.57%
BOL	―	kr119.37B	14.47	11.99%	―	8.30%	-8.62%
SSAB.B	―	kr59.55B	11.95	7.29%	4.36%	-8.04%	-37.18%
BILL	―	kr22.44B	18.53	4.43%	3.90%	2.55%	98.53%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STE.R	―	kr85.24B	―	―	3.65%	3.43%	78.62%
STE.A	―	kr85.24B	―	―	2.56%	3.43%	78.62%