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SSAB
(OTC:SSAAY)
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Rating:65Neutral
Price Target:
$6.00
▲(16.05% Upside)
Action:Reiterated
Date:07/23/26
The score is driven primarily by mixed fundamentals: a strong balance sheet and improving profitability are offset by weak cash conversion and volatile/free-cash-flow pressure. Technicals are constructive with the stock trading above key moving averages and positive MACD, while valuation is moderate (P/E ~18) with a modest dividend. The latest earnings call adds a balanced outlook—operational momentum and strategic progress, but near-term maintenance and cost headwinds.
Positive Factors
Strong balance sheet & credit rating
SSAB's net cash position (~SEK 8.6bn), conservative leverage (debt/equity ~0.16) and investment-grade Baa2 rating materially reduce refinancing risk and provide financing flexibility. That supports sustained capex for decarbonization and strategic projects through steel cycles, enhancing long-term resilience.
Negative Factors
Weak free cash flow conversion
Despite solid operating cash flow, TTM free cash flow is slightly negative and has swung widely year‑to‑year due to heavy reinvestment and working‑capital effects. Persistent weak FCF constrains self‑funding of strategic projects and dividends, increasing reliance on external financing in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & credit rating
SSAB's net cash position (~SEK 8.6bn), conservative leverage (debt/equity ~0.16) and investment-grade Baa2 rating materially reduce refinancing risk and provide financing flexibility. That supports sustained capex for decarbonization and strategic projects through steel cycles, enhancing long-term resilience.
Read all positive factors
SSAB (SSAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.71B
Dividend Yield1.97%
Average Volume (3M)100.00
Price to Earnings (P/E)18.2
Beta (1Y)1.02
Revenue Growth9.38%
EPS Growth35.59%
CountryUS
Employees14,609
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)2.82
Shares Outstanding591,932,700
10 Day Avg. Volume104
30 Day Avg. Volume100
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.03
Price to Sales (P/S)0.77
P/FCF Ratio-21.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.39
Revenue Forecast (FY)$10.75B
SSAB Business Overview & Revenue Model
Company Description
SSAB AB (publ) engages in the production and sale of steel products in Sweden, Finland, Germany, Poland, Denmark, Asia, the Rest of Europe, the United States, and internationally. It operates through five segments: SSAB Special Steels, SSAB Europe...
How the Company Makes Money
SSAB makes money primarily by manufacturing and selling steel products to industrial customers. Its core revenue stream is the sale of steel by product category and grade (e.g., high-strength and advanced high-strength steels, heavy plate, strip, ...
SSAB Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented several material positives: robust revenue and EBITDA improvement, higher shipments, meaningful price increases (group avg +6% q/q, Americas +7% q/q), strengthened net cash (SEK 8.6bn), an investment‑grade rating (Moody's Baa2) and clear progress on strategic projects (Oxelösund conversion, quenching line). These positives were tempered by notable cost inflation (logistics, energy, alloys, CO2 allowances), near-term maintenance-related volume and result headwinds (~SEK 800m impact in Q3), transport constraints in the U.S., and temporary inventory/import-driven softness in Europe. Overall the operational and financial momentum plus strategic progress outweigh the near-term cost and maintenance challenges.Positive Updates
Improved Safety Metrics
Total recordable injury frequency (TRIF) lowered to 4.1 — described as one of the lowest levels in recent history and an improving safety trend across the company.
Negative Updates
Higher Variable Costs Reduced Margin
Variable costs negatively impacted EBIT by approx SEK 510 million q/q, driven by higher logistics, energy, alloying costs and increased CO2 emission allowance costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Safety Metrics
Total recordable injury frequency (TRIF) lowered to 4.1 — described as one of the lowest levels in recent history and an improving safety trend across the company.
Read all positive updates
Company Guidance
Guidance from the call: SSAB expects Q3 shipments to be significantly lower for Special Steel (and somewhat lower in Americas) due to extensive seasonal maintenance (estimated negative impact ~SEK 800m), while prices are guided to be “somewhat higher” (0–5%, management thinks closer to 5% possible); Q2 baseline metrics were shipments 1,760 kt, revenue SEK 27.5bn, EBITDA SEK 3.8bn (14% margin) and operating result SEK 2.7bn, group Q/Q price +6% (Americas +7%, Y/Y +2%), net cash SEK 8.6bn and a ~SEK 2bn dividend paid in Q2. Cost outlook: logistics, alloys and CO2 allowance costs remain elevated (emission‑allowance purchases guided ~SEK 700m), scrap consumption in the U.S. may be slightly lower in Q3, and full‑year maintenance CapEx remains ~SEK 3bn with strategic CapEx rising (Luleå and Oxelösund) and IT/ERP operating expense about SEK 200m higher for the year. Operational milestones: Oxelösund production start targeted next year (management cited Q2 next year in Q&A) with ramp‑up under ~6 months and some fossil‑free grades available after ~2 months; overall the company expects price increases to largely offset cost pressure in the U.S. and to be more uncertain but broadly compensating in Europe.SSAB Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 97.55B | 90.45B | 100.48B | 119.49B | 124.98B | 95.89B |
| Gross Profit | 13.67B | 11.56B | 11.56B | 22.55B | -2.12B | 23.47B |
| EBITDA | 11.60B | 9.42B | 13.25B | 21.26B | 32.62B | 22.21B |
| Net Income | 5.58B | 4.90B | 13.03B | 13.03B | -10.88B | 14.66B |
Balance Sheet | ||||||
| Total Assets | 111.61B | 106.13B | 110.73B | 107.84B | 109.71B | 112.02B |
| Cash, Cash Equivalents and Short-Term Investments | 19.66B | 22.77B | 27.81B | 28.92B | 24.90B | 13.80B |
| Total Debt | 10.86B | 11.34B | 10.15B | 10.62B | 10.68B | 12.51B |
| Total Liabilities | 40.76B | 38.31B | 39.71B | 39.89B | 42.52B | 38.51B |
| Stockholders Equity | 70.81B | 67.78B | 70.97B | 67.87B | 67.12B | 73.48B |
Cash Flow | ||||||
| Free Cash Flow | -123.15M | -3.25B | 3.68B | 14.91B | 13.21B | 11.49B |
| Operating Cash Flow | 11.79B | 9.47B | 11.90B | 21.47B | 18.16B | 14.87B |
| Investing Cash Flow | -10.36B | -10.11B | -6.61B | -5.29B | -3.89B | -2.27B |
| Financing Cash Flow | -2.41B | -2.81B | -5.20B | -12.77B | -723.00M | -5.03B |
SSAB Technical Analysis
Positive
5.17
Price Trends
5.08
Positive
4.69
Positive
4.24
Positive
Market Momentum
0.13
Negative
58.45
Neutral
88.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSAAY, the sentiment is Positive. The current price of 5.17 is below the 20-day moving average (MA) of 5.22, above the 50-day MA of 5.08, and above the 200-day MA of 4.24, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 88.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSAAY.
SSAB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $8.31B | 13.68 | 13.65% | 1.10% | 15.23% | 1535.96% | |
66 Neutral | $10.58B | 15.14 | 4.74% | 4.65% | -0.65% | 18.90% | |
65 Neutral | $10.71B | 18.24 | 8.10% | 2.06% | 9.38% | 35.59% | |
62 Neutral | $9.04B | 30.87 | 2.53% | 2.65% | 8.98% | -21.39% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $6.99B | -7.48 | -15.23% | ― | 4.03% | 52.63% | |
41 Neutral | $1.18B | -3.32 | -12.83% | ― | 2.16% | 20.46% |
* Basic Materials Sector Average
SSAAY
SSAB
5.39
2.50
86.76%
CLF
Cleveland-Cliffs
12.49
2.77
28.50%
CMC
Commercial Metals Company
73.21
20.81
39.72%
GGB
Gerdau SA
4.96
2.09
72.76%
SID
Companhia Siderúrgica Nacional
0.90
-0.47
-34.31%
TX
Ternium SA
54.80
24.71
82.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.