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SSAB (SSAAY)
OTHER OTC:SSAAY
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SSAB
(OTC:SSAAY)
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Rating:70Outperform
Price Target:
$4.00
▲(4.44% Upside)
SSAB's overall stock score of 70 reflects a balanced view of its strengths and challenges. The most significant factor is the stable financial performance with a strong balance sheet, despite liquidity concerns. Technical analysis indicates bullish momentum, supporting a positive outlook. Valuation is reasonable, and the earnings call provides cautious optimism about future prospects. However, challenges in revenue growth and cash flow management need to be addressed to improve the score further.
Positive Factors
Innovative Product Leadership
SSAB's leadership in green steel production positions it favorably in an industry increasingly focused on sustainability, potentially attracting environmentally conscious clients and partners.
Strong Balance Sheet
A strong balance sheet with low leverage provides SSAB with financial flexibility to invest in strategic projects and weather economic downturns, supporting long-term stability.
Stable Operating Margins
Consistent operating margins in key divisions like Special Steel indicate operational efficiency and the ability to maintain profitability despite market challenges.
Negative Factors
Revenue Decline
A notable decline in revenue reflects challenges in maintaining sales momentum, which could impact long-term growth prospects if not addressed.
Cash Flow Challenges
Negative free cash flow suggests potential liquidity risks, limiting SSAB's ability to fund new projects or manage debt without external financing.
Project Delays
Delays in strategic projects like Oxelösund can hinder SSAB's transformation efforts and delay potential benefits from new technologies and efficiencies.
SSAB (SSAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.38B
Dividend Yield3.59%
Average Volume (3M)100.00
Price to Earnings (P/E)16.9
Beta (1Y)0.98
Revenue Growth-4.26%
EPS Growth-33.25%
CountryUS
Employees14,637
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.08
Shares Outstanding591,932,700
10 Day Avg. Volume104
30 Day Avg. Volume100
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.69
Price to Sales (P/S)0.49
P/FCF Ratio13.28
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.39
Enterprise Value/Ebitda0.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SSAB Business Overview & Revenue Model
Company DescriptionSSAB is a leading global steel company specializing in advanced high-strength steel and other steel products. Headquartered in Stockholm, Sweden, SSAB operates in several sectors, including construction, automotive, and heavy machinery. The company is known for its innovative solutions that enhance the performance and sustainability of steel, with core products including hot-rolled and cold-rolled sheets, plates, and tubular products. SSAB also emphasizes environmentally friendly production techniques and is committed to reducing carbon emissions in the steelmaking process.
How the Company Makes MoneySSAB generates revenue primarily through the sale of steel products to various industries, including automotive, construction, and manufacturing. Key revenue streams include hot-rolled and cold-rolled steel, steel plates, and specialized products tailored for specific applications. The company benefits from strong partnerships with major automotive manufacturers and construction firms, which helps secure long-term contracts and stable revenue. Additionally, SSAB's focus on innovation and high-strength steel products allows it to command premium pricing, thereby enhancing profit margins. The transition towards more sustainable steel production also positions SSAB favorably in a market increasingly focused on environmental responsibility.
SSAB Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
The earnings call revealed a stable financial performance and significant achievements in safety and green initiatives, despite facing challenges like lower shipments and maintenance outages. The company remains optimistic about future prospects, particularly with ongoing strategic projects.Q3-2025 Updates
Positive Updates
Safety Culture Improvements
SSAB continues to reduce the number of lost time injuries, emphasizing its strong safety culture and aim to become the safest steel company in the world.
Stable Financial Performance
Q3 came out stable despite challenging geopolitical and market conditions, with a strong cash flow and stable operating margins, particularly in Special Steel with a 22% margin.
Groundbreaking Event in Luleå
Successful groundbreaking ceremony for the Luleå mini-mill project with the presence of key stakeholders, marking a significant step in SSAB's investment plans.
SSAB Zero Product Achievement
SSAB became the first steel company to meet the International Energy Agency's threshold for near-zero emissions, showcasing its leadership in green transformation.
Improved EBITDA Margin
EBITDA margin improved to 12.6% from last year's 9.5%, despite a decrease in revenue compared to the previous quarter.
Negative Updates
Lower Shipments Across Divisions
Q3 shipments were generally lower across Special Steel, Europe, and Americas divisions, with Special Steel down by 11% and Europe by 18% compared to expectations.
Maintenance Outages Impact
Maintenance outages in Europe and Americas have negatively impacted profitability and shipments, particularly in SSAB Europe.
Delays in Oxelösund Project
The production startup of the Oxelösund electric arc furnace project is delayed to early Q1 2027 due to external factors related to the power grid.
Weak Market Conditions in Nordics
Challenging market conditions in the Nordics, particularly in the construction segment, led to lower shipments and operating results for Tibnor.
Lower Revenue and Prices in Americas
Americas division faced lower shipments and prices, with an increase of only 1% in prices against an expected 5-10%.
Company Guidance
During the SSAB Q3 2025 earnings call, the company highlighted several key metrics and outlooks. Safety performance remains a top priority, with a continued reduction in lost time injuries. The Q3 operating results were stable despite challenging market conditions, with the Americas division showing improved profitability compared to Q3 2024. The Special Steel division maintained a stable operating margin of 22%, contributing a financial result of SEK 1.4 billion, while SSAB Europe's profitability was impacted by maintenance outages. SSAB Americas faced uncertainties around tariffs, resulting in slightly lower shipments. The company reported a Q3 revenue of just below SEK 23 billion, a decrease from the previous quarter and year-on-year. EBITDA for Q3 was SEK 2.9 billion, representing a margin of 12.6%, an improvement from 9.5% last year. SSAB maintained strong net cash flow and a net cash position of SEK 10.8 billion. The company continues its strategic transformation projects, with plans to start production at the Oxelösund electric arc furnace in early Q1 2027, despite a slight delay due to external power grid factors. Looking forward, SSAB anticipates slightly lower shipments for Special Steel and somewhat lower shipments and prices for SSAB Americas in Q4, while SSAB Europe may see higher volumes post-outage.SSAB Financial Statement Overview
Summary
SSAB's financial performance is mixed. The income statement shows moderate profitability with challenges in revenue growth. The balance sheet is stable with low leverage and a strong equity base. However, the cash flow statement indicates potential liquidity risks due to negative free cash flow, highlighting the need for improved cash generation.Income Statement
SSAB's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 12.69% and a net profit margin of 5.07%, which are relatively modest. The company experienced a significant revenue decline of 22.15% in the TTM period, reflecting challenges in maintaining sales momentum. However, the EBIT and EBITDA margins remain positive at 6.01% and 10.24%, respectively, indicating operational efficiency. The annual data shows fluctuating margins and revenue growth, with a notable decline in 2024. Overall, the income statement reflects moderate profitability with some volatility in revenue growth.65
Positive
Balance Sheet
The balance sheet of SSAB demonstrates a stable financial position. The TTM debt-to-equity ratio is low at 0.14, indicating conservative leverage. The return on equity (ROE) is 7.22%, which is moderate but shows room for improvement. The equity ratio stands at 65.13%, suggesting a strong equity base relative to total assets. Historical data shows consistent management of debt levels and equity, with a slight decrease in ROE over time. Overall, the balance sheet reflects financial stability with prudent leverage management.70
Positive
Cash Flow
SSAB's cash flow statement reveals some concerns. The TTM free cash flow is negative, indicating cash outflows, although there was a 13.25% growth in free cash flow compared to the previous period. The operating cash flow to net income ratio is 0.38, suggesting moderate cash generation relative to earnings. The free cash flow to net income ratio is negative, highlighting potential cash flow challenges. Historical data shows fluctuations in free cash flow growth and coverage ratios, pointing to variability in cash flow management. Overall, the cash flow statement indicates potential liquidity risks and the need for improved cash generation.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 97.39B | 100.48B | 119.49B | 124.98B | 95.89B | 65.39B |
| Gross Profit | 12.35B | 11.56B | 22.55B | -2.12B | 23.47B | 3.78B |
| EBITDA | 9.97B | 13.25B | 21.26B | 32.62B | 22.21B | 3.51B |
| Net Income | 4.93B | 13.03B | 13.03B | -10.88B | 14.66B | -490.00M |
Balance Sheet | ||||||
| Total Assets | 104.20B | 110.73B | 107.84B | 109.71B | 112.02B | 88.60B |
| Cash, Cash Equivalents and Short-Term Investments | 20.23B | 27.81B | 28.92B | 24.90B | 13.80B | 7.05B |
| Total Debt | 9.23B | 10.15B | 10.62B | 10.68B | 12.51B | 17.45B |
| Total Liabilities | 36.30B | 39.71B | 39.89B | 42.52B | 38.51B | 34.51B |
| Stockholders Equity | 67.88B | 70.97B | 67.87B | 67.12B | 73.48B | 53.99B |
Cash Flow | ||||||
| Free Cash Flow | -1.00B | 3.68B | 14.91B | 13.21B | 11.49B | 2.16B |
| Operating Cash Flow | 10.07B | 11.90B | 21.47B | 18.16B | 14.87B | 4.37B |
| Investing Cash Flow | -8.70B | -6.61B | -5.29B | -3.89B | -2.27B | -2.18B |
| Financing Cash Flow | -4.15B | -5.20B | -12.77B | -723.00M | -5.03B | 685.00M |
SSAB Technical Analysis
Positive
3.83
Price Trends
3.68
Positive
3.39
Positive
3.22
Positive
Market Momentum
0.14
Negative
65.00
Neutral
55.76
Neutral
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 3.83 is below the 20-day moving average (MA) of 3.97, above the 50-day MA of 3.68, and above the 200-day MA of 3.22, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.00 is Neutral, neither overbought nor oversold. The STOCH value of 55.76 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.38B | 16.89 | 6.57% | 3.59% | -4.26% | -33.25% | |
68 Neutral | $8.23B | 14.33 | 4.80% | 7.02% | -16.69% | 585.38% | |
67 Neutral | $8.41B | 19.53 | 10.51% | 1.02% | -1.61% | -81.36% | |
67 Neutral | $7.72B | 15.82 | 5.21% | 2.92% | -2.53% | -36.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $8.15B | -4.11 | -27.16% | ― | -6.76% | -255.94% | |
54 Neutral | $2.44B | -8.83 | -10.50% | ― | -5.79% | -5.30% |
* Basic Materials Sector Average
SSAAY
SSAB
4.15
2.04
96.59%
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CMC
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GGB
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4.16
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46.48%
SID
Companhia Siderúrgica Nacional
1.79
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TX
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41.70
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58.43%
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.