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Salzgitter Ag Unsponsored ADR (SZGPY)
:SZGPY

Salzgitter (SZGPY) AI Stock Analysis

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Salzgitter

(OTC:SZGPY)

50Neutral
Salzgitter's overall stock performance is hindered by financial challenges, particularly in profitability and cash flow. Despite a strong balance sheet, technical indicators suggest bearish momentum, and valuation metrics raise concerns. The lack of earnings guidance adds uncertainty to future prospects.

Salzgitter (SZGPY) vs. S&P 500 (SPY)

Salzgitter Business Overview & Revenue Model

Company DescriptionSalzgitter AG is a leading European steel and technology company headquartered in Germany. It operates through several segments, including Strip Steel, Plate/Section Steel, Mannesmann, Trading, and Technology. The company is known for producing a wide range of steel products such as hot-rolled and cold-rolled steel, heavy plate, and precision tubes. Additionally, Salzgitter AG is involved in the trading of steel products and the development of industrial solutions, contributing to various sectors including automotive, engineering, and construction.
How the Company Makes MoneySalzgitter AG generates revenue primarily through the production and sale of steel products. Its key revenue streams include the Strip Steel segment, which produces hot-rolled and cold-rolled steel used in automotive and industrial applications, and the Plate/Section Steel segment, which manufactures heavy plates and beams for construction and engineering projects. The Mannesmann segment is involved in producing tubes and pipes, catering to the energy sector. The Trading segment supports the distribution of these products globally. Additionally, the Technology segment contributes by providing specialized industrial solutions and machinery. Strategic partnerships with leading automotive and engineering firms, as well as efficient cost management and technological advancements, play significant roles in boosting the company's earnings.

Salzgitter Financial Statement Overview

Summary
Salzgitter's financial performance is challenged by negative revenue growth and net profit margins, indicating profitability issues. The balance sheet is strong with no debt, but cash flow difficulties persist due to negative free cash flow.
Income Statement
48
Neutral
The company's TTM revenue has decreased compared to previous years, indicating negative revenue growth. Net profit margin is negative due to a net loss, reflecting profitability challenges. The gross profit margin is stable, but the EBIT and EBITDA margins are subdued, highlighting operational inefficiencies.
Balance Sheet
70
Positive
The balance sheet shows no debt, improving the debt-to-equity ratio to a very favorable position. Stockholders' equity is strong relative to total assets, indicating a solid equity ratio. However, fluctuating net income affects return on equity, which remains a concern.
Cash Flow
55
Neutral
The TTM free cash flow is negative, indicating challenges in cash generation. However, the operating cash flow remains positive, which supports the company's liquidity. The ratios of operating and free cash flow to net income are distorted due to the recent net loss.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
10.11B10.79B12.55B9.77B7.09B8.55B
Gross Profit
2.65B3.37B4.16B3.54B2.35B2.94B
EBIT
-8.80M251.40M1.28B592.90M-175.30M-41.20M
EBITDA
405.90M721.50M1.59B1.10B191.80M368.40M
Net Income Common Stockholders
-192.10M200.10M1.08B581.10M-273.90M-237.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
623.00M939.70M988.40M791.50M621.40M751.40M
Total Assets
8.76B10.50B11.10B10.25B8.24B8.62B
Total Debt
711.70M1.30B1.70B1.51B1.23B1.06B
Net Debt
156.10M361.10M709.90M772.90M609.90M363.60M
Total Liabilities
5.42B5.67B6.25B6.90B5.56B5.68B
Stockholders Equity
3.32B4.83B4.84B3.35B2.67B2.93B
Cash FlowFree Cash Flow
-706.50M140.20M154.00M-14.00M-356.10M-193.60M
Operating Cash Flow
68.30M892.00M596.50M329.40M18.30M250.70M
Investing Cash Flow
-508.30M-430.50M-367.70M-366.60M-234.20M-304.80M
Financing Cash Flow
-106.20M-498.30M11.30M146.30M151.00M194.70M

Salzgitter Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.58
Price Trends
50DMA
1.93
Positive
100DMA
1.82
Positive
200DMA
1.84
Positive
Market Momentum
MACD
0.20
Negative
RSI
69.56
Neutral
STOCH
77.58
Neutral
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 2.58 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 1.93, and above the 200-day MA of 1.84, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 69.56 is Neutral, neither overbought nor oversold. The STOCH value of 77.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SZGPY.

Salzgitter Peers Comparison

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RSRS
73
Outperform
$14.92B17.9411.71%1.58%-6.56%-31.89%
NUNUE
72
Outperform
$30.17B15.479.79%1.66%-11.46%-53.33%
72
Outperform
$18.13B12.2717.27%1.49%-6.68%-32.96%
ATATI
70
Outperform
$7.38B19.9522.82%4.51%-2.90%
50
Neutral
$1.55B-4.06%1.22%-8.23%-160.59%
XX
49
Neutral
$8.57B24.343.43%0.53%-13.48%-56.94%
47
Neutral
$2.61B-3.78-28.62%3.34%2.54%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SZGPY
Salzgitter
2.62
0.07
2.75%
ATI
ATI
50.00
1.75
3.63%
NUE
Nucor
129.56
-49.88
-27.80%
RS
Reliance Steel
278.93
-35.49
-11.29%
STLD
Steel Dynamics
123.25
-7.00
-5.37%
X
United States Steel
37.52
-0.55
-1.44%
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.