SSAB (SSAAY) AI Stock Analysis

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SSAB

(OTC:SSAAY)

Rating:69Neutral

Price Target:

$3.50

▲(13.64%Upside)

SSAB's strong financial stability and reasonable valuation are offset by declining profitability and mixed earnings call sentiment. Technical indicators are neutral, suggesting balanced market expectations. Challenges in maintaining profitability and cash flow growth amidst market conditions weigh on the score.

SSAB (SSAAY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.23B

Dividend Yield4.3%

Average Volume (3M)15.00

Price to Earnings (P/E)13.1

Beta (1Y)0.99

Revenue Growth-11.60%

EPS Growth-56.40%

CountryUS

Employees14,637

SectorBasic Materials

Sector Strength68

IndustrySteel

Share Statistics

EPS (TTM)0.06

Shares Outstanding591,932,700

10 Day Avg. Volume0

30 Day Avg. Volume15

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)0.43

Price to Sales (P/S)0.00

P/FCF Ratio2.19

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

SSAB Business Overview & Revenue Model

Company DescriptionSSAB 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 MoneySSAB makes money primarily through the production and sale of high-strength steel products across various industries, including automotive, construction, and energy. The company's revenue model is based on manufacturing and selling steel products directly to end-users and through distributors. Key revenue streams include the sale of advanced high-strength steels and value-added services such as design support and technical consultancy. Additionally, SSAB engages in strategic partnerships and collaborations with industry leaders to enhance its market presence and drive innovation. The company's focus on sustainability and the production of fossil-free steel also contribute to its competitive advantage and profitability in the evolving global steel market.

SSAB Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: -2.53%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with strong performances in Special Steels and SSAB Americas offset by challenges in SSAB Europe and concerns over tariffs. Despite increased shipments and a positive outlook for the Americas, revenue and EBITDA declines, along with weak demand in key sectors, moderated the overall sentiment.

Q1-2025 Updates

Positive Updates

Special Steels Performance

Special Steels showed a strong performance with sales increasing to 336,000 tonnes and financial performance reaching SEK 1.4 billion, showcasing the unique customer value and market willingness to pay a premium for these products.

Positive Outlook for SSAB Americas

SSAB Americas had a positive delivery month with strong order intake and expected price increases between 10% to 20% for Q2 and Q3, supported by a stable and strong energy segment.

Transformation Projects and Investments

SSAB secured a EUR 2.3 billion financing package to support the Lulea mini-mill project. The company also approved an investment in a tempering furnace at the Mobile production facility to enhance special steel production.

Increased Steel Shipments

Q1 shipments increased by 16% from the previous quarter and 6% year-over-year, with Special Steels and Europe divisions showing significant volume increases.

Strong Order Intake from Energy Segment

The energy segment in the United States remains strong with significant orders, contributing positively to SSAB's performance and outlook.

Negative Updates

Impact of Tariffs

Tariffs remain a concern, posing risks to SSAB's export-dependent operations, although current flexibility allows for local production in the U.S.

Challenges in SSAB Europe

SSAB Europe faced a strike in Finland costing SEK 120 million, impacting financial performance. The operating result was only SEK 33 million, indicating challenges in the European market.

Lower Revenue Compared to Previous Year

Q1 revenue was SEK 25.5 billion, an 8% increase from the previous quarter but a 6% decrease compared to the previous year, indicating price reductions.

Reduced EBITDA

Q1 EBITDA was SEK 2.4 million, a drop compared to the previous year’s Q1 performance of SEK 4.1 million, mainly due to lower prices.

Weak Demand in Automotive and Construction Machinery

Demand reduction was noted in the automotive and construction machinery sectors, particularly in Europe and North America.

Company Guidance

During the call, SSAB provided guidance on several key metrics for the upcoming quarters. The company expects Special Steels to achieve somewhat higher shipments with stable pricing, while SSAB Europe is anticipated to see somewhat higher shipments and prices. For SSAB Americas, significantly higher prices are expected, alongside somewhat higher shipments. In Q1 2025, SSAB reported an operating result of approximately SEK 1.3 billion, with Special Steels' sales increasing to roughly 336,000 tonnes, generating a financial performance of SEK 1.4 billion. The company's overall Q1 revenue was SEK 25.5 billion, marking an 8% increase from the previous quarter but a 6% decrease year-over-year. EBITDA for Q1 was SEK 2.4 million, a rise from SEK 1.6 million in Q4 2024 but a decline from SEK 4.1 million in Q1 2024. SSAB secured a EUR 2.3 billion financing package, maintaining a net cash position of SEK 14.4 billion at the end of Q1. The company also plans to spend SEK 10 billion in CapEx for 2025.

SSAB Financial Statement Overview

Summary

SSAB shows strong financial stability with a robust balance sheet and low leverage. However, there are challenges with declining profitability margins and a significant decrease in free cash flow, despite strong operational efficiency.

Income Statement

Positive

SSAB's TTM data shows a stable revenue with a slight increase of 1.3% from the previous year. The gross profit margin is 12.52%, and the net profit margin stands at 4.98%, indicating moderate profitability. However, these figures have declined compared to the previous year, where net income was significantly higher. The EBITDA margin is robust at 10.1%, suggesting efficient operational performance despite recent declines in EBIT and EBITDA.

Balance Sheet

Positive

SSAB maintains a strong balance sheet with a debt-to-equity ratio of 0.14, showcasing low leverage. The equity ratio is a healthy 65.51%, indicating strong financial stability. Return on equity is modest at 7.43% but demonstrates the company's ability to generate reasonable returns for shareholders. The company's substantial cash reserves provide a solid buffer for future investments and liabilities.

Cash Flow

Positive

The free cash flow has decreased significantly from the previous period, with a negative growth rate of 48.5%. However, the operating cash flow to net income ratio is strong at 1.84, reflecting efficient cash generation relative to net income. The current free cash flow to net income ratio stands at 0.37, indicating room for improvement in translating net income into free cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
101.79B	100.48B	119.49B	124.98B	95.89B	65.39B
	Gross Profit
12.74B	11.56B	22.55B	-2.12B	23.47B	3.78B
	EBIT
6.14B	7.86B	16.47B	-4.24B	18.84B	-312.00M
	EBITDA
10.28B	13.25B	21.26B	32.62B	22.21B	3.51B
	Net Income Common Stockholders
5.08B	13.03B	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 Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.08

Price Trends

50DMA

3.07

Positive

100DMA

2.99

Positive

200DMA

2.65

Positive

Market Momentum

MACD

<0.01

Negative

RSI

48.12

Neutral

STOCH

38.98

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSAAY, the sentiment is Negative. The current price of 3.08 is below the 20-day moving average (MA) of 3.10, above the 50-day MA of 3.07, and above the 200-day MA of 2.65, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSAAY.

SSAB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIM	74 Outperform	$4.57B	7.16	19.79%	―	-15.93%	86.43%
GGB	73 Outperform	$6.17B	11.11	5.86%	2.69%	-9.33%	-51.03%
CMC	70 Outperform	$5.73B	84.16	1.78%	1.42%	-7.93%	-89.29%
SSAAY	69 Neutral	$6.23B	13.10	7.08%	4.30%	-11.60%	-56.40%
TX	58 Neutral	$5.80B	73.52	-2.75%	12.18%	-10.20%	-152.18%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
CLF	48 Neutral	$3.97B	―	-17.57%	―	-15.00%	-423.14%

* Basic Materials Sector Average

Performance Comparison

SSAAY

SSAB

3.08

0.32

11.59%

CLF

Cleveland-Cliffs

7.37

-7.49

-50.40%

CMC

Commercial Metals Company

48.57

-1.89

-3.75%

GGB

Gerdau SA

3.05

-0.04

-1.29%

SIM

Grupo Simec SA De CV

28.15

-1.85

-6.17%

Ternium SA

29.11

-5.54

-15.99%

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.