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SSAB (SSAAY)
OTHER OTC:SSAAY
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SSAB (SSAAY) AI Stock Analysis

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SSAAY

SSAB

(OTC:SSAAY)

Rating:69Neutral
Price Target:
$3.50
▲(13.64%Upside)
SSAB's overall stock score is driven by its strong financial stability and balanced earnings call sentiment. The company faces challenges with declining profitability margins and free cash flow, alongside neutral technical indicators. Valuation metrics suggest moderate attractiveness, contributing to a cautious but stable outlook.

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

SSAB Business Overview & Revenue Model

Company DescriptionSSAB (SSAAY) is a leading Nordic and U.S.-based steel company with a global presence, known for its high-strength steel and related services. The company operates through several key divisions, including SSAB Special Steels, SSAB Europe, and SSAB Americas. Its core products include advanced high-strength steels, quenched and tempered steels, and other steel products that cater to the automotive, construction, machinery, and energy sectors. SSAB is also committed to sustainability, with significant efforts towards fossil-free steel production.
How the Company Makes MoneySSAB makes money primarily through the manufacturing and sale of steel products. The company's revenue streams are diversified across its various divisions. SSAB Special Steels focuses on high-strength and wear-resistant steels, while SSAB Europe offers a broad range of strip, plate, and tube products. SSAB Americas is a major supplier of heavy plate in North America. The company benefits from its robust supply chain and extensive customer base across different industries. Additionally, SSAB's commitment to innovation and sustainable production, including its HYBRIT initiative for fossil-free steel, positions it to capitalize on the growing demand for eco-friendly materials. Strategic partnerships and long-term customer contracts further bolster its revenue stability and growth potential.

SSAB Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -9.68%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected both positive and negative aspects. While there were significant achievements in operating results, automotive segment sales, and strategic partnerships, challenges in the European market, delays in key projects, and flat revenue growth tempered the positive highlights. The overall sentiment is balanced due to these mixed outcomes.
Q2-2025 Updates
Positive Updates
Improved Operating Results
The operating result for Q2 was significantly higher than Q1 2025, ending at roughly SEK 2.1 billion in EBIT.
Record Levels in Automotive Segment
Achieved record levels of advanced high-strength steel sales to the automotive segment, primarily sold from SSAB Europe.
Positive Impact from U.S. Tariffs
SSAB benefits from 50% tariffs in the U.S., leading to more regionalized and higher prices, especially in the American plate market.
Special Steel Performance
Despite slightly lower revenues, Special Steels had better profitability than Q1 with an operating margin of roughly 22%.
Increased Shipments
Steel shipments in Q2 were 1,708 kilotonnes, 32 kilotonnes higher than Q1 and 62 kilotonnes higher than Q2 of the previous year.
Partnership with Volvo Cars
Partnership agreement signed with Volvo Cars to supply SSAB Zero and to collect high-quality scrap, demonstrating market interest in SSAB's Zero material.
Strong Pipeline Orders in Americas
SSAB Americas fully booked for pipeline orders, indicating strong underlying demand.
Negative Updates
Challenges in the European Market
Europe faces challenging market conditions with low prices due to spillover material sold at extremely low prices, impacting standard material prices.
Delay in Luleå Mini-mill
Start-up delayed by 1 year due to necessary rebuild of the transformation station and grid, impacting electricity supply.
Weaker Automotive Segment
Global automotive production is slightly lower, about 2% down from forecasts, with weak performance in the U.S. and Europe.
Negative Impact of Stronger Krona
A stronger krona and weaker dollar negatively affected earnings, despite overall good financial performance.
Flat Revenue Growth
Q2 revenue was SEK 25.6 billion, relatively flat compared to Q1 and 9% lower than the previous year.
High Working Capital Impact
Negative impact on working capital during Q2, with accounts receivables up and accounts payable down.
Company Guidance
In the recent SSAB Q2 earnings call, comprehensive guidance was provided on several key metrics. The company reported an operating result of SEK 2.1 billion, significantly higher than Q1 2025. SSAB's Special Steels segment achieved an impressive operating margin of 22%, despite a slight revenue decline. In terms of volume, steel shipments reached 1,708 kilotonnes, reflecting a year-over-year increase of 62 kilotonnes. Revenue for Q2 was SEK 25.6 billion, with stable prices across most segments, although FX impacts led to a 6% negative effect. The company also highlighted strategic investments, with a planned CapEx of SEK 10 billion for the year, and noted that its financial stability is supported by a net cash position close to SEK 11 billion. Looking ahead, SSAB anticipates stable or improving prices in its key markets, with some regional variations, and plans to continue its transformation efforts despite a one-year delay in the Luleå mini-mill project.

SSAB Financial Statement Overview

Summary
SSAB shows strong financial stability with a robust balance sheet, characterized by low leverage and high equity. However, profitability margins have slightly declined, and cash flow growth faces challenges. Operational efficiency remains solid.
Income Statement
65
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
78
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
72
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue100.48B119.49B124.98B95.89B65.39B
Gross Profit11.56B22.55B-2.12B23.47B3.78B
EBITDA13.25B21.26B32.62B22.21B3.51B
Net Income13.03B13.03B-10.88B14.66B-490.00M
Balance Sheet
Total Assets110.73B107.84B109.71B112.02B88.60B
Cash, Cash Equivalents and Short-Term Investments27.81B28.92B24.90B13.80B7.05B
Total Debt10.15B10.62B10.68B12.51B17.45B
Total Liabilities39.71B39.89B42.52B38.51B34.51B
Stockholders Equity70.97B67.87B67.12B73.48B53.99B
Cash Flow
Free Cash Flow3.68B14.91B13.21B11.49B2.16B
Operating Cash Flow11.90B21.47B18.16B14.87B4.37B
Investing Cash Flow-6.61B-5.29B-3.89B-2.27B-2.18B
Financing Cash Flow-5.20B-12.77B-723.00M-5.03B685.00M

SSAB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.08
Price Trends
50DMA
3.09
Negative
100DMA
3.13
Negative
200DMA
2.75
Positive
Market Momentum
MACD
0.03
Positive
RSI
47.23
Neutral
STOCH
3.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSAAY, the sentiment is Neutral. The current price of 3.08 is below the 20-day moving average (MA) of 3.14, below the 50-day MA of 3.09, and above the 200-day MA of 2.75, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 3.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSAAY.

SSAB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$4.75B7.1119.79%-15.93%86.43%
75
Outperform
$5.95B10.755.86%1.31%-9.33%-51.03%
71
Outperform
$5.81B167.290.88%1.35%-5.64%-93.26%
69
Neutral
$5.99B13.706.57%1.35%-8.41%-53.89%
63
Neutral
$10.55B10.831.51%2.68%2.24%-33.79%
61
Neutral
$6.17B73.52-2.75%8.49%-10.20%-152.18%
56
Neutral
$5.40B-25.79%-12.14%-4329.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSAAY
SSAB
3.08
0.51
19.84%
CLF
Cleveland-Cliffs
11.44
-3.82
-25.03%
CMC
Commercial Metals Company
53.32
-5.84
-9.87%
GGB
Gerdau SA
3.05
-0.07
-2.24%
SIM
Grupo Simec SA De CV
27.96
-0.75
-2.61%
TX
Ternium SA
31.80
-0.99
-3.02%
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.Date of analysis: Jul 25, 2025