Acerinox SA (ANIOY) AI Stock Analysis

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Acerinox SA

(OTC:ANIOY)

73Outperform

Acerinox SA scores a 73, reflecting its solid financial performance with notable improvements in profit margins, albeit with challenges in revenue and free cash flow. The stock shows strong technical momentum, indicating positive investor sentiment, while its valuation remains attractive with a decent dividend yield. The recent earnings call highlighted both opportunities and challenges, maintaining a balanced outlook.

Acerinox SA (ANIOY) vs. S&P 500 (SPY)

Market Cap

$2.42B

Dividend Yield4.42%

Average Volume (3M)3.00

Price to Earnings (P/E)10.4

Beta (1Y)1.14

Revenue Growth-18.04%

EPS Growth-1.33%

CountryUS

Employees9,311

SectorBasic Materials

Sector Strength59

IndustrySteel

Share Statistics

EPS (TTM)0.49

Shares Outstanding498,670,750

10 Day Avg. Volume0

30 Day Avg. Volume3

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.28

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

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

Acerinox SA Business Overview & Revenue Model

Company DescriptionAcerinox SA is a leading global manufacturer of stainless steel and nickel alloys. The company operates in the steel industry and is known for its high-quality flat products, long products, and other specialty steel products. With a significant international presence, Acerinox serves various sectors, including construction, automotive, and consumer goods, providing essential materials for diverse industrial applications.

How the Company Makes MoneyAcerinox SA generates revenue primarily through the production and sale of stainless steel products. The company's key revenue streams include the sale of flat products, such as coils and sheets, and long products, like bars and wires. Acerinox benefits from its extensive global distribution network, strategic partnerships, and advanced manufacturing facilities that enhance operational efficiency. The company also focuses on continuous innovation and sustainability initiatives to meet market demands and maintain competitive advantage in the steel industry. Additionally, its presence in various international markets allows it to capitalize on different economic cycles and demand fluctuations, contributing to its overall earnings.

Acerinox SA Financial Statement Overview

Summary

Acerinox SA demonstrated mixed financial results, with strong improvement in gross profit margin but challenges in sustaining revenue and profit growth. The balance sheet reflects stable financial health with moderate leverage, while the cash flow statement indicates potential difficulties in generating free cash flow. Overall, the company maintains a solid position but faces challenges in profitability and cash flow management.

Income Statement

Positive

Acerinox SA's income statement shows fluctuating revenues, with a recent decline from 2023 to 2024. The gross profit margin improved from 20.79% in 2023 to 34.37% in 2024, indicating enhanced efficiency in production or cost management. The net profit margin decreased slightly to 4.16% in 2024 from 3.45% in 2023, showing a need to improve profitability. EBIT and EBITDA margins in 2024 are 6.43% and 11.26%, respectively, indicating moderate operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a relatively high debt-to-equity ratio of 0.94 in 2024, suggesting moderate leverage. Return on equity was modest, with a slight decline from 9.47% in 2023 to 8.90% in 2024, indicating less effective use of equity to generate profit. The equity ratio remained consistent around 39.06% in 2024, showing a balanced capital structure.

Cash Flow

Positive

Cash flow analysis reveals fluctuating free cash flow, with a significant drop in free cash flow growth rate from 2023 to 2024. The operating cash flow to net income ratio of 1.31 in 2024 suggests adequate cash generation relative to net income. However, the free cash flow to net income ratio decreased to 0.40, indicating less free cash flow available for reinvestment or dividends.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.41B	6.61B	8.69B	6.71B	4.67B
	Gross Profit
1.86B	1.37B	3.08B	2.43B	1.50B
	EBIT
348.10M	508.32M	875.77M	809.71M	163.13M
	EBITDA
609.63M	627.52M	1.09B	994.38M	359.23M
	Net Income Common Stockholders
224.95M	228.13M	556.05M	571.88M	49.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	1.80B	1.56B	1.29B	939.78M
	Total Assets
6.47B	6.10B	6.32B	5.98B	4.73B
	Total Debt
2.38B	2.15B	1.99B	1.85B	1.69B
	Net Debt
1.12B	360.03M	440.48M	578.22M	772.24M
	Total Liabilities
3.89B	3.64B	3.77B	3.77B	3.12B
	Stockholders Equity
2.53B	2.41B	2.47B	2.16B	1.57B
Cash Flow		Free Cash Flow
88.89M	306.58M	407.37M	285.67M	319.11M
	Operating Cash Flow
293.67M	481.48M	544.08M	387.81M	420.55M
	Investing Cash Flow
-896.46M	-174.70M	-125.50M	-90.44M	-372.48M
	Financing Cash Flow
-36.03M	-5.57M	-216.03M	10.31M	67.50M

Acerinox SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price5.10

Price Trends

50DMA

5.73

Negative

100DMA

5.30

Negative

200DMA

5.15

Negative

Market Momentum

MACD

0.07

Positive

RSI

51.73

Neutral

STOCH

15.21

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANIOY, the sentiment is Negative. The current price of 5.1 is below the 20-day moving average (MA) of 6.01, below the 50-day MA of 5.73, and below the 200-day MA of 5.15, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 15.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANIOY.

Acerinox SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (47)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS	77 Outperform	$14.03B	16.87	11.71%	1.70%	-6.56%	-31.89%
ANIOY	73 Outperform	$2.42B	10.44	9.22%	4.42%	-18.04%	-1.33%
STLD	73 Outperform	$16.37B	11.09	17.27%	1.72%	-6.68%	-32.96%
NUE	71 Outperform	$23.82B	12.20	9.79%	2.11%	-11.46%	-53.33%
CMC	66 Neutral	$4.63B	68.01	1.78%	1.76%	-7.93%	-89.29%
X	49 Neutral	$8.67B	24.50	3.43%	0.52%	-13.48%	-56.94%
Sector *	47 Neutral	$2.36B	-3.00	-21.73%	3.58%	3.97%	-28.71%

* Basic Materials Sector Average

Performance Comparison

ANIOY

Acerinox SA

5.10

-0.29

-5.38%

CMC

Commercial Metals Company

40.95

-16.07

-28.18%

NUE

Nucor

103.22

-94.40

-47.77%

Reliance Steel

264.78

-67.20

-20.24%

STLD

Steel Dynamics

109.21

-36.37

-24.98%

United States Steel

38.29

-2.05

-5.08%

Acerinox SA Earnings Call Summary

Earnings Call Date: Feb 28, 2025 | % Change Since: -11.76% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements, such as the acquisition and integration of Haynes International, strong performance in the North American market, and continued commitment to sustainability. However, these were offset by substantial challenges, including the impact of a prolonged strike in Europe, challenging market conditions, and increased financial debt. The overall sentiment is balanced with both positive and negative aspects.

Highlights

Successful Acquisition and Integration of Haynes International

The acquisition of Haynes International is seen as a transformational milestone for Acerinox. The company expects synergies of €75 million, with a focus on expanding HPA production in the U.S. and leveraging Haynes' capabilities to enhance their position in the aerospace sector.

Sale of Bahru Stainless

Acerinox successfully sold Bahru Stainless for USD $95 million, resulting in an income effect of €146 million in 2024 due to prior impairments and favorable exchange rates.

Strong Results in North American Market

Despite a challenging environment, North American Stainless delivered strong results, increasing its market share by 2 points and maintaining stable prices even with reduced volumes.

High-Performance Alloys Division Performance

The High-Performance Alloys division, led by VDM, maintained solid demand, particularly in oil and gas, despite headwinds in the nickel market.

Commitment to Sustainability

Acerinox continued its sustainability efforts, including launching Eco-Acerinox, focusing on recycled materials and renewable energy, and maintaining strong performance in waste reduction and diversity.

Lowlights

Impact of European Operations Strike

A 5-month strike in Acerinox Europa significantly affected operations, resulting in an €84 million impact on results, with further provisions for a Rejuvenation Plan costing €12 million.

Challenging Market Conditions in Europe

The European market remained depressed with low prices and high import pressure, impacting Acerinox's performance and creating uncertainty about recovery timelines.

Inventory Adjustment and Production Challenges

Acerinox had to make significant inventory adjustments due to production disruptions from the strike and headwinds in the nickel market, affecting the overall profitability.

Increased Net Financial Debt

Net financial debt increased to €1.1 billion, the highest since 2008, due primarily to the acquisition of Haynes and liabilities associated with the sale of Bahru.

Company Guidance

In the recent conference call, Acerinox provided comprehensive guidance on their financial performance and strategic initiatives for 2024. The company reported a significant EBITDA of €500 million, despite challenges such as a 5-month strike in Europe, which impacted their financial outcomes with a loss of €84 million. The sale of Bahru Stainless at USD$95 million contributed positively to the accounts, resulting in a €146 million effect on their P&L. Their acquisition of Haynes International added €51 million in debt, but they are optimistic about the synergies, projecting €75 million in benefits. The company maintains a robust net financial debt position at €1.1 billion, with a net debt-to-EBITDA ratio of 2.2. Looking ahead, Acerinox plans to invest €300-€350 million in CapEx in 2025, focusing on expanding their production capabilities and enhancing their presence in high-performance alloys. CEO Bernardo Velázquez expressed confidence in the company's strategy, highlighting the potential for improved market conditions in the U.S. and Europe, which could lead to better performance in the upcoming quarters.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.