voestalpine AG (VLPNY) AI Stock Analysis

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voestalpine AG

(OTC:VLPNY)

62Neutral

voestalpine AG demonstrates financial stability with zero debt and strong cash flow management, which are significant strengths. However, the company faces challenges with profitability and valuation, as indicated by the negative P/E ratio and low profit margins. Technical indicators show upward momentum but also caution due to high RSI and Stochastics. These mixed factors result in an overall score that reflects cautious optimism, with significant attention needed on improving profitability and managing potential market volatility.

voestalpine AG (VLPNY) vs. S&P 500 (SPY)

Market Cap

$4.10B

Dividend Yield2.12%

Average Volume (3M)31.00

Price to Earnings (P/E)―

Beta (1Y)0.86

Revenue Growth-5.73%

EPS Growth-110.50%

CountryUS

Employees50,670

SectorBasic Materials

Sector Strength60

IndustrySteel

Share Statistics

EPS (TTM)-0.08

Shares Outstanding892,745,000

10 Day Avg. Volume93

30 Day Avg. Volume31

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.30

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 ConsensusHold

Number of Analyst Covering0

voestalpine AG Business Overview & Revenue Model

Company Descriptionvoestalpine AG is a leading global technology and capital goods group, headquartered in Linz, Austria. The company operates in several sectors, including steel production, automotive, railway systems, aerospace, energy, and construction. voestalpine is known for its high-quality steel products and advanced technologies, offering a wide range of products such as high-performance steel, automotive components, and railway infrastructure solutions.

How the Company Makes Moneyvoestalpine AG generates revenue through its diverse business segments, primarily focusing on the production and distribution of high-performance steel and related products. The company operates four main divisions: Steel, High Performance Metals, Metal Engineering, and Metal Forming. Each division caters to specific industries, such as automotive, railway, aerospace, and construction, providing customized solutions and innovative products. The Steel Division focuses on high-quality flat steel products, while the High Performance Metals Division specializes in tool and high-speed steels. The Metal Engineering Division provides railway infrastructure systems and industrial systems, and the Metal Forming Division offers sophisticated automotive components and systems. Additionally, voestalpine relies on strategic partnerships and collaborations to enhance its product offerings and expand its market reach, further driving revenue growth.

voestalpine AG Financial Statement Overview

Summary

Overall, voestalpine AG exhibits a stable financial position with a strong balance sheet, highlighted by zero debt and a solid equity base. Cash flows are well-managed, supporting investment and operations. However, profitability remains a concern with narrow profit margins, which could pose challenges in a volatile steel market. Continued focus on enhancing revenue growth and operational efficiency will be crucial for improving financial performance.

Income Statement

Positive

The income statement reveals a modest gross profit margin of approximately 16.8% for the TTM period. Net profit margin is notably low at 0.08%, indicating minimal profitability. Revenue shows a slight decline compared to previous periods, with a decrease of 2.8% from the last fiscal year. Although EBITDA margin is reasonable at 8.32%, the overall margins suggest tight profitability in a competitive industry.

Balance Sheet

Positive

The balance sheet demonstrates financial stability with a strong equity ratio of 46.9% and zero total debt in the TTM period, significantly reducing leverage risk. The ROE is relatively low at 0.17% for the TTM, reflecting limited net income returns to equity holders. However, a solid stockholders' equity base reinforces the company's financial resilience.

Cash Flow

Positive

Cash flow analysis indicates healthy operating cash flows, covering capital expenditures efficiently. The free cash flow to net income ratio is high, suggesting effective cash flow management despite low net income. The operating cash flow to net income ratio is robust at 114.10, indicating strong cash generation relative to accounting earnings.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
16.21B	16.68B	18.23B	14.92B	11.27B	12.72B
	Gross Profit
2.73B	2.79B	3.64B	3.36B	1.85B	2.16B
	EBIT
428.20M	569.30M	1.70B	1.46B	340.50M	-89.00M
	EBITDA
1.35B	1.74B	2.61B	2.09B	1.15B	1.16B
	Net Income Common Stockholders
12.30M	100.80M	1.06B	1.30B	42.10M	-208.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.18B	1.48B	1.40B	988.40M	1.30B	850.10M
	Total Assets
16.61B	16.56B	17.09B	17.02B	14.91B	14.97B
	Total Debt
3.21B	3.06B	2.99B	3.19B	3.98B	4.54B
	Net Debt
2.26B	1.74B	1.94B	2.34B	2.82B	3.75B
	Total Liabilities
8.82B	9.06B	9.32B	9.96B	9.26B	9.35B
	Stockholders Equity
7.49B	7.19B	7.53B	6.91B	5.52B	5.48B
Cash Flow		Free Cash Flow
287.60M	366.00M	204.10M	588.90M	1.03B	556.10M
	Operating Cash Flow
1.40B	1.45B	956.20M	1.24B	1.63B	1.30B
	Investing Cash Flow
-763.80M	-853.00M	-47.10M	-629.80M	-665.80M	-606.80M
	Financing Cash Flow
-1.12B	-325.30M	-685.90M	-948.30M	-595.60M	-374.30M

voestalpine AG Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.58

Price Trends

50DMA

4.80

Negative

100DMA

4.31

Positive

200DMA

4.55

Negative

Market Momentum

MACD

0.12

Positive

RSI

42.62

Neutral

STOCH

0.22

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLPNY, the sentiment is Negative. The current price of 4.58 is below the 20-day moving average (MA) of 5.06, below the 50-day MA of 4.80, and above the 200-day MA of 4.55, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 0.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLPNY.

voestalpine AG 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	$14.68B	17.68	11.71%	1.61%	-6.56%	-31.89%
MT	73 Outperform	$21.28B	15.00	2.60%	1.67%	-8.56%	68.36%
STLD	73 Outperform	$18.38B	12.46	17.27%	1.56%	-6.68%	-32.96%
NUE	71 Outperform	$25.25B	12.93	9.79%	1.99%	-11.46%	-53.33%
VLPNY	62 Neutral	$4.10B	―	-0.85%	2.12%	-5.73%	-110.50%
X	57 Neutral	$9.25B	26.15	3.43%	0.49%	-13.48%	-56.94%
Sector *	47 Neutral	$2.43B	-3.06	-22.76%	3.59%	4.02%	-29.07%

* Basic Materials Sector Average

Performance Comparison

VLPNY

voestalpine AG

4.58

-1.06

-18.79%

ArcelorMittal

26.86

0.35

1.32%

NUE

Nucor

111.24

-79.62

-41.72%

Reliance Steel

279.55

-40.75

-12.72%

STLD

Steel Dynamics

120.41

-18.40

-13.26%

United States Steel

40.06

-0.55

-1.35%

voestalpine AG Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: 8.02% | Next Earnings Date: Jun 4, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While there are strong performances in the North American market, energy sector, and stable automotive demand, the company faces challenges in the European market and significant pricing pressures affecting EBITDA. Positive momentum includes free cash flow improvements and ongoing decarbonization efforts.

Highlights

Stable Automotive and Strong Energy Sector Demand

Automotive production remains stable and slightly higher than the previous year. There is strong demand from the energy sector, particularly in heavy plates, and a very stable demand in the railway infrastructure business.

Resilient North American Market

Voestalpine's North American operations show satisfactory demand across most sites, indicating resilience in the economy.

Positive Free Cash Flow Trend

After a negative free cash flow in the first quarter, the company achieved a positive free cash flow of almost EUR 70 million in the third quarter.

Decarbonization and Green Steel Initiatives

The company is progressing with its decarbonization strategy, including replacing blast furnaces with electric arc furnaces, aiming to reduce CO2 emissions by 30% by 2030.

Lowlights

Weak European Market Demand

The European economy is experiencing lower demand for products in construction, mechanical engineering, and consumer goods, presenting challenges for Voestalpine.

High Performance Metals Division Challenges

There is very weak demand for tool steel due to low industrial CapEx spending and a lack of new automotive models, impacting the High Performance Metals division.

Decrease in EBITDA and Pricing Pressures

EBITDA decreased to EUR 1.3 billion from EUR 1.9 billion in the prior year's first 9 months, primarily due to a EUR 551 million decline in pricing, especially in the Steel division.

Company Guidance

During the earnings call for VOE.VI, the company provided guidance for the fiscal year ending in March 2024. They anticipate an EBITDA of around EUR 1.7 billion, despite challenging market conditions, particularly in Europe where demand in construction, mechanical engineering, and consumer goods is weak. The automotive sector remains stable, and there is strong demand from the energy and aviation industries. The company reported an EBITDA of almost EUR 1.3 billion for the first nine months, with an EBITDA margin of over 10%. They also noted a free cash flow guidance of around EUR 400 million for the full year, with an expected significant working capital release of approximately EUR 500 million in the last quarter. Additionally, the company discussed their ongoing decarbonization projects, including plans to replace blast furnaces with electric arc furnaces, aiming for a 30% reduction in CO2 emissions in the initial phase.

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.