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Ssab Ab Unsponsored ADR Class A (SSAAY)
:SSAAY
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SSAB
(OTC:SSAAY)
Rating:64Neutral
Price Target:
$3.00
▲(3.09% Upside)
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage enhances financial stability, allowing SSAB to invest in growth opportunities and weather economic downturns.
Sustainability Initiatives
SSAB's focus on sustainable steel production positions it to meet increasing demand for eco-friendly materials, providing a competitive edge and aligning with global sustainability trends.
Advanced High-Strength Steel Sales
Strong sales in advanced high-strength steel demonstrate SSAB's ability to capitalize on high-demand sectors, supporting revenue growth and market position.
Negative Factors
Declining Revenue Growth
Declining revenue growth indicates challenges in maintaining market share and pricing power, potentially impacting long-term profitability and strategic initiatives.
Negative Free Cash Flow
Negative free cash flow can limit SSAB's ability to fund operations and investments, posing risks to financial flexibility and future growth potential.
Challenges in SSAB Europe
Market challenges in SSAB Europe highlight regional vulnerabilities that could affect overall performance and require strategic adjustments to maintain competitiveness.
SSAB (SSAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.73B
Dividend Yield4.67%
Average Volume (3M)90.00
Price to Earnings (P/E)13.2
Beta (1Y)0.95
Revenue Growth-8.41%
EPS Growth-53.89%
CountryUS
Employees14,637
SectorBasic Materials
Sector Strength60
IndustrySteel
Share Statistics
EPS (TTM)0.10
Shares Outstanding591,932,700
10 Day Avg. Volume0
30 Day Avg. Volume90
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.41
Enterprise Value/Ebitda0.51
Forecast
1Y Price Target
$3.00Price Target Upside3.09% Upside
Rating ConsensusHold
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 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: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative aspects. While there were significant improvements in operating results and strong performances in certain segments like SSAB Americas and advanced high-strength steel sales, the company faced challenges in SSAB Europe and delays in key projects. The overall sentiment is balanced with notable achievements offset by significant challenges.Q2-2025 Updates
Positive Updates
Improved Operating Result
SSAB's operating result was significantly higher in Q2 2025 compared to Q1 2025, reaching roughly SEK 2.1 billion in EBIT.
Record Sales in Advanced High-Strength Steel
The company achieved record sales of advanced high-strength steel to the automotive segment, primarily sold from SSAB Europe.
Strong Performance in SSAB Americas
SSAB Americas showed a strong financial performance with higher volumes and prices, benefiting from local production amidst tariffs.
Successful Financing Package
SSAB secured a financing package extended to EUR 2.7 billion, providing stability for future investments.
Positive Developments in Oxelösund Conversion
The Oxelösund conversion project is progressing according to plan, with significant construction milestones achieved.
Negative Updates
Challenges in SSAB Europe
SSAB Europe faced challenging market conditions with significant price drops in standard materials, resulting in an operating result of only SEK 100 million.
Delay in Luleå Mini-Mill Project
The start-up of the Luleå mini-mill has been delayed by a year due to external electricity supply issues.
Impact of Stronger Krona and Weaker Dollar
The stronger krona and weaker dollar negatively affected earnings, despite strong performance in the Americas.
Lower Revenue Compared to Previous Year
Q2 2025 revenue was SEK 25.6 billion, 9% lower than the previous year's Q2 revenue of SEK 28.3 billion.
Company Guidance
In the SSAB Q2 earnings call, the company provided extensive guidance on its financial performance and strategic outlook. SSAB reported an operating result of SEK 2.1 billion for the quarter, significantly higher than Q1 2025, driven by strong sales of advanced high-strength steel, particularly in the automotive segment. The company highlighted a positive impact from tariffs in the U.S., where SSAB operates two large production facilities with a capacity of 2.4 million tonnes, benefiting from regionalized higher prices. Special Steels achieved an operating margin of 22%, despite slightly lower revenues, while SSAB Europe faced challenging market conditions with Q2 operating results around SEK 100 million. The U.S. segment showed strong performance with higher volumes and prices, although a stronger krona and weaker dollar impacted earnings. SSAB also announced a delay in the Luleå mini-mill start-up due to external factors but maintained its overall cost forecast of EUR 4.5 billion. The company secured a financing package of EUR 2.7 billion, supporting its transformation projects. For Q3, SSAB expects stable to lower shipment volumes across divisions, with stable to higher pricing, underscoring a turbulent yet cautiously optimistic market outlook.SSAB Financial Statement Overview
Summary
SSAB shows a mixed financial performance. The income statement indicates profitability but with declining revenue growth. The balance sheet is strong with low leverage and a solid equity base, providing financial stability. However, the cash flow statement highlights significant challenges, particularly with negative free cash flow, which could impact future operations if not addressed.Income Statement
The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -2.6%, and the gross profit margin is relatively low at 11.89%. However, the company maintains a positive net profit margin of 4.55% and an EBIT margin of 5.25%. The EBITDA margin is also healthy at 9.48%. Despite the recent decline, the company has shown resilience in maintaining profitability.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, indicating conservative leverage. The return on equity is modest at 6.58%, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 65.37%, showing a strong equity base relative to total assets, which enhances financial stability.72
Positive
Cash Flow
The cash flow statement reveals challenges, particularly with free cash flow, which is 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 -10.11%, indicating cash flow issues. However, the operating cash flow to net income ratio is 37.91%, showing some ability to generate cash from operations despite the free cash flow challenges.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 99.14B | 100.48B | 119.49B | 124.98B | 95.89B | 65.39B |
| Gross Profit | 11.79B | 11.56B | 22.55B | -2.12B | 23.47B | 3.78B |
| EBITDA | 9.40B | 13.25B | 21.26B | 32.62B | 22.21B | 3.51B |
| Net Income | 4.51B | 13.03B | 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 Technical Analysis
Neutral
2.91
Price Trends
3.01
Negative
3.05
Negative
2.84
Positive
Market Momentum
-0.03
Negative
47.65
Neutral
90.35
Negative
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 2.91 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 3.01, and above the 200-day MA of 2.84, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 90.35 is Negative, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.63B | 191.01 | 0.88% | 1.24% | -5.64% | -93.26% | |
71 Outperform | $6.14B | 11.12 | 5.77% | 3.53% | -6.55% | -37.93% | |
70 Neutral | $6.87B | 11.44 | 4.89% | 7.80% | -16.83% | ― | |
64 Neutral | $5.73B | 13.17 | 6.57% | 4.67% | -8.41% | -53.89% | |
61 Neutral | $10.48B | 7.52 | -0.05% | 2.87% | 2.87% | -36.73% | |
52 Neutral | $5.83B | ― | -25.79% | ― | -12.14% | -4329.00% | |
50 Neutral | $1.93B | ― | -15.57% | 15.50% | -10.77% | -191.87% |
* Basic Materials Sector Average
Performance Comparison
SSAAY
SSAB
2.91
0.62
27.07%
CLF
Cleveland-Cliffs
11.68
-0.07
-0.60%
CMC
Commercial Metals Company
57.84
7.14
14.08%
GGB
Gerdau SA
3.03
-0.21
-6.48%
SID
Companhia Siderúrgica Nacional
1.48
-0.60
-28.85%
TX
Ternium SA
34.62
3.42
10.96%
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.