Salzgitter (SZGPY)
OTHER OTC:SZGPY
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Salzgitter
(OTC:SZGPY)
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Rating:54Neutral
Price Target:
$6.00
▲(25.26% Upside)
Action:ReiteratedDate:04/15/26
The score is held back mainly by weak financial performance, including recent losses and deeply negative free cash flow. Technicals are supportive with price above key moving averages and moderate RSI, providing partial offset, while valuation is mixed due to a negative P/E despite a very high dividend yield.
Positive Factors
Diversified steel production, processing and trading
Salzgitter's vertically integrated model—raw steel production, downstream processing and trading—creates multiple revenue streams and captures margin across the value chain. That structural diversification stabilizes cash flow through cycles and supports customer relationships and higher‑value product mix over months.
Negative Factors
Profitability swung to losses; margins negative
A structural deterioration to negative EBIT undermines the firm's ability to self‑fund and invest, compresses margins and may indicate persistent demand or cost issues. If margins do not recover, competitiveness, reinvestment in processing capabilities and long‑term product development could be impaired.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified steel production, processing and trading
Salzgitter's vertically integrated model—raw steel production, downstream processing and trading—creates multiple revenue streams and captures margin across the value chain. That structural diversification stabilizes cash flow through cycles and supports customer relationships and higher‑value product mix over months.
Read all positive factors
Salzgitter (SZGPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.26B
Dividend Yield0.53%
Average Volume (3M)930.00
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-6.47%
EPS Growth78.91%
CountryUS
Employees23,868
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.14
Shares Outstanding600,970,000
10 Day Avg. Volume400
30 Day Avg. Volume930
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)0.49
Price to Sales (P/S)0.25
P/FCF Ratio-3.44
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit1.50
Enterprise Value/Ebitda12.09
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
Salzgitter Business Overview & Revenue Model
Company Description
Salzgitter AG is a leading German steel and technology company that operates primarily in the steel production sector. The company is involved in the manufacturing of a wide range of steel products, including flat steel, long steel, and tubes, whi...
How the Company Makes Money
Salzgitter makes money primarily by producing and selling steel and steel-based products and by distributing steel through its trading operations. A major revenue stream comes from selling steel products (e.g., flat and long products) to industria...
Salzgitter Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Salzgitter, with strong performance in the Technology segment and effective cost reduction measures being positive aspects. However, these are counterbalanced by challenges in the steel production segment due to weak demand and prices, as well as negative impacts from derivatives and ongoing market uncertainties. The sentiment remains cautious with an emphasis on strategic management and future growth opportunities.Positive Updates
Strong Performance of Technology Segment
The Technology segment, particularly KHS, foresees a record year with an EBT well above EUR 100 million. Order intake is also significantly above last year, driven by the success of Plasmax technology, especially in India, and expansion into Africa and the Americas.
Negative Updates
Weak Steel Demand and Prices
The steel production segment has been impacted by low demand and weak prices, with revenues flat and sales and earnings down due to low prices and weak demand for heavy plate.
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Q2-2025 Updates
Positive
Negative
Strong Performance of Technology Segment
The Technology segment, particularly KHS, foresees a record year with an EBT well above EUR 100 million. Order intake is also significantly above last year, driven by the success of Plasmax technology, especially in India, and expansion into Africa and the Americas.
Read all positive updates
Company Guidance
During the analyst conference call for Salzgitter Group's first half of 2025, the company outlined several key metrics and guidance for the rest of the year. The management expects sales to be in the range of EUR 9 billion to EUR 9.5 billion, with EBITDA projected between EUR 300 million and EUR 400 million. The pretax results are anticipated to fall between minus EUR 100 million to zero, while the return on capital employed (ROCE) is expected to slightly increase year-on-year. Additionally, the company reported a healthy equity ratio of 42.2% and a net financial debt projected to be around minus EUR 1.2 billion by year-end. Despite facing challenges such as low steel demand and fluctuating raw material prices, Salzgitter Group is focusing on cost-saving measures, aiming to achieve EUR 500 million in total cost savings by 2028, with EUR 48 million already realized in the first half of 2025. The company also emphasized its commitment to the decarbonization program, SALCOS, and urged policymakers to create a supportive regulatory environment for the steel industry in Europe.Salzgitter Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.63B | 10.01B | 10.79B | 12.55B | 9.77B |
| Gross Profit | 439.06M | 3.17B | 3.37B | 4.16B | 3.54B |
| EBITDA | 43.22M | 478.60M | 624.00M | 1.44B | 1.12B |
| Net Income | -71.27M | -352.20M | 200.10M | 1.08B | 581.10M |
Balance Sheet | |||||
| Total Assets | 10.48B | 10.47B | 10.50B | 11.10B | 10.25B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.00B | 939.70M | 988.40M | 791.50M |
| Total Debt | 2.22B | 1.76B | 1.30B | 1.70B | 1.51B |
| Total Liabilities | 6.05B | 6.02B | 5.67B | 6.25B | 6.90B |
| Stockholders Equity | 4.42B | 4.44B | 4.83B | 4.84B | 3.35B |
Cash Flow | |||||
| Free Cash Flow | -628.09M | -560.30M | 140.20M | 154.00M | -14.00M |
| Operating Cash Flow | 399.97M | 408.40M | 892.00M | 596.50M | 329.40M |
| Investing Cash Flow | -665.46M | -677.40M | -430.50M | -367.70M | -366.60M |
| Financing Cash Flow | 349.06M | 331.90M | -498.30M | 11.30M | 146.30M |
Salzgitter Technical Analysis
Positive
4.79
Price Trends
5.40
Positive
5.16
Positive
4.07
Positive
Market Momentum
0.20
Negative
64.40
Neutral
95.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SZGPY, the sentiment is Positive. The current price of 4.79 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 5.40, and above the 200-day MA of 4.07, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 95.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SZGPY.
Salzgitter Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $5.17B | 29.18 | 6.07% | ― | -14.23% | -87.81% | |
64 Neutral | $7.44B | 21.86 | 11.88% | 1.02% | 8.38% | 626.64% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $8.40B | 9.20 | 2.53% | 2.92% | 4.46% | -47.34% | |
54 Neutral | $3.26B | -22.70 | -1.68% | 0.53% | -6.47% | 78.91% | |
50 Neutral | $1.93B | 49.75 | 10.97% | 1.78% | 5.55% | 11.54% | |
42 Neutral | $1.61B | -2.65 | -13.62% | ― | -0.94% | 24.97% |
* Basic Materials Sector Average
SZGPY
Salzgitter
5.44
2.96
119.27%
CMC
Commercial Metals Company
67.06
22.22
49.55%
GGB
Gerdau SA
4.50
2.02
81.38%
SIM
Grupo Simec SA De CV
30.52
2.96
10.72%
SID
Companhia Siderúrgica Nacional
1.26
-0.41
-24.55%
WS
Worthington Steel, Inc.
38.06
12.35
48.04%
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.