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Ampco-Pittsburgh (AP)
NYSE:AP
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Ampco-Pittsburgh
(NYSE:AP)
Rating:75Outperform
Price Target:
$4.00
▲(11.11%Upside)
Ampco-Pittsburgh (AP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.53M
Dividend YieldN/A
Average Volume (3M)73.51K
Price to Earnings (P/E)16.7
Beta (1Y)1.25
Revenue Growth-3.60%
EPS GrowthN/A
CountryUS
Employees1,634
SectorIndustrials
Sector Strength94
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.06
Shares Outstanding20,094,618
10 Day Avg. Volume90,995
30 Day Avg. Volume73,512
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.92
Price to Sales (P/S)0.00
P/FCF Ratio-17.85
Enterprise Value/Market Cap2.62
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda3.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Ampco-Pittsburgh Business Overview & Revenue Model
Company DescriptionAmpco-Pittsburgh Corporation is a diversified industrial company primarily engaged in manufacturing and selling highly engineered, high-performance specialty metal products and custom equipment. Operating in sectors such as steel, aluminum, and other industries requiring precision-engineered solutions, the company's core products include forged and cast rolls, air and liquid processing equipment, and other specialized machinery.
How the Company Makes MoneyAmpco-Pittsburgh generates revenue through the production and sale of specialty metal products and custom-engineered equipment. Its key revenue streams include the sale of forged and cast rolls used in rolling mills for steel and aluminum production, and the sale of air and liquid processing equipment serving various industrial applications. The company serves a global customer base, which includes manufacturers in the steel, aluminum, and other sectors that require durable and precisely engineered products to support their production processes. Revenue is further supported by service agreements and aftermarket sales, providing ongoing maintenance and parts replacement for their products. Strategic partnerships and long-term contracts with leading industry players also contribute significantly to its earnings.
Ampco-Pittsburgh Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 25.87%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The call highlighted significant improvements in earnings per share and adjusted EBITDA, with record order intakes and improved product mix in the Air and Liquid Systems segment. However, it also noted a decline in net sales and concerns over tariffs and supply chain issues. Despite these challenges, the positive highlights slightly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Earnings Per Share Improvement
Ampco-Pittsburgh reported earnings per common share of $0.06 for Q1 2025, an improvement of $0.20 compared to the prior year quarter.
Adjusted EBITDA Growth
Adjusted EBITDA for the quarter was $8.8 million, compared to $5.1 million in Q1 2024, showing significant improvement.
Record Order Intake for Air and Liquid Systems
Air and Liquid Systems reported the highest order intake in its history, driven by the nuclear market and strong activity in military and pharmaceutical markets.
Improved Product Mix and Segment EBITDA
Air and Liquid Systems saw a better product mix, with adjusted EBITDA increasing to $3.8 million from $2.2 million in the prior year.
Negative Updates
Net Sales Decline
Consolidated net sales for Q1 2025 were $104.3 million, a decline of approximately 5% compared to the first quarter of 2024.
Supply Chain and Tariff Concerns
Concerns were raised about potential short-term supply chain issues due to tariffs, with some customer reluctance to accept tariff costs.
Decline in Forged and Cast Engineered Products Sales
The segment reported net sales of $72.3 million, down from $77.2 million in the first quarter of 2024, primarily due to lower volume and unfavorable exchange rates.
Company Guidance
During the Ampco-Pittsburgh Corporation's first-quarter 2025 earnings call, several key metrics were highlighted, showcasing the company's financial performance and strategic initiatives. The corporation reported earnings per common share of $0.06, marking a $0.20 improvement compared to the prior year quarter. Adjusted EBITDA rose to $8.8 million from $5.1 million in the first quarter of 2024, with both segments contributing to this improvement. Net sales for the quarter were $104.3 million, reflecting a 5% decline from the previous year but a 3% sequential increase from Q4 2024. The company experienced a record order intake in the Air and Liquid segment, particularly from the nuclear, military, and pharmaceutical markets. Despite challenges such as tariffs and market uncertainties, the company is focused on passing costs to customers to protect margins and anticipates continued growth in various sectors, including tool steel and nuclear power. The total backlog increased by 6% year-over-year to $368.5 million, indicating strong future order potential.Ampco-Pittsburgh Financial Statement Overview
Summary
Ampco-Pittsburgh's financial statements reveal steady profitability with improved margins but are challenged by declining revenue and high leverage. The balance sheet indicates high debt levels, and while operating cash flows are strong, negative free cash flow suggests liquidity pressures.Income Statement
The company's gross profit margin for TTM stands at 18.63%, indicating a reasonable ability to cover costs. The net profit margin improved to 1.04% from a prior year's 0.10%, showing enhanced profitability, albeit remaining low. Revenue decreased by 1.42% in the TTM compared to the previous year, suggesting a slight contraction. The EBIT and EBITDA margins are 3.87% and 9.43% respectively, reflecting stable operational efficiency. Overall, the income statement indicates modest profitability and stable margins, but revenue contraction is a concern.72
Positive
Balance Sheet
The company's debt-to-equity ratio is 2.05, indicating high leverage, which could pose a risk in volatile market conditions. Return on equity (ROE) improved to 6.65% in the TTM, showing better returns to equity holders compared to negative returns in previous years. The equity ratio is 12.06%, suggesting a limited equity buffer to absorb potential shocks. While improvements in ROE are positive, high leverage remains a critical concern for financial stability.65
Positive
Cash Flow
The operating cash flow to net income ratio is 1.91, demonstrating strong cash generation relative to net income. However, free cash flow has turned negative in the TTM, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is -0.78, highlighting the inability to convert earnings into free cash flow. While operating cash flows are robust, the negative free cash flow trajectory indicates potential liquidity pressures.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 412.36M | 418.31M | 422.34M | 390.19M | 344.92M | 328.54M | Gross Profit |
| 76.83M | 81.50M | 74.56M | 62.19M | 57.28M | 71.03M | EBIT |
| 15.94M | 12.17M | -34.57M | 7.80M | -292.00K | 11.89M | EBITDA |
| 38.87M | 35.25M | -12.23M | 28.43M | 20.51M | 31.42M | Net Income Common Stockholders |
| 4.30M | 438.00K | -39.93M | 3.42M | -12.13M | 7.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.83M | 15.43M | 7.29M | 8.73M | 10.34M | 16.84M | Total Assets |
| 565.81M | 530.90M | 565.65M | 502.77M | 485.63M | 463.21M | Total Debt |
| 135.54M | 133.17M | 133.42M | 108.99M | 64.97M | 41.59M | Net Debt |
| 124.72M | 117.75M | 126.14M | 100.26M | 54.64M | 24.75M | Total Liabilities |
| 498.57M | 459.81M | 494.08M | 389.38M | 393.83M | 378.21M | Stockholders Equity |
| 56.30M | 58.88M | 60.94M | 104.33M | 82.57M | 76.56M |
| Cash Flow | Free Cash Flow | ||||
| -3.34M | 5.83M | -24.13M | -43.90M | -31.10M | 25.17M | Operating Cash Flow |
| 8.21M | 18.03M | -3.69M | -27.21M | -15.87M | 33.63M | Investing Cash Flow |
| -7.11M | -8.24M | -19.68M | -16.31M | -14.73M | -7.93M | Financing Cash Flow |
| -5.11M | -1.35M | 21.69M | 42.59M | 24.40M | -17.22M |
Ampco-Pittsburgh Technical Analysis
Positive
3.60
Price Trends
2.36
Positive
2.29
Positive
2.11
Positive
Market Momentum
0.32
Negative
72.15
Negative
72.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AP, the sentiment is Positive. The current price of 3.6 is above the 20-day moving average (MA) of 2.87, above the 50-day MA of 2.36, and above the 200-day MA of 2.11, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 72.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AP.
Ampco-Pittsburgh Risk Analysis
Ampco-Pittsburgh disclosed 27 risk factors in its most recent earnings report. Ampco-Pittsburgh reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Changes in the global economic environment, inflation, elevated interest rates, recessions or prolonged periods of slow economic growth, and global instability and actual and threatened geopolitical conflict, could have an adverse effect on our industry and business, as well as those of our customers and suppliers. Q4, 2024
Ampco-Pittsburgh Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $325.94M | 14.48 | 9.40% | ― | -8.42% | 164.82% | |
75 Outperform | $70.53M | 16.74 | 7.11% | ― | -3.60% | ― | |
72 Outperform | $108.70M | 9.06 | 13.54% | ― | 18.83% | ― | |
70 Outperform | $2.79B | 52.18 | 13.01% | 0.73% | 2.61% | -53.74% | |
67 Neutral | $393.64M | 12.16 | 9.13% | ― | 8.06% | 38.46% | |
66 Neutral | $4.48B | 12.24 | 5.32% | 248.54% | 4.09% | -12.10% | |
58 Neutral | $298.23M | 39.51 | -1.05% | ― | 0.24% | ― |
* Industrials Sector Average
Performance Comparison
AP
Ampco-Pittsburgh
3.57
2.31
183.33%
AZZ
AZZ
93.63
17.14
22.41%
GIFI
Gulf Island Fabrication
6.68
0.05
0.75%
NWPX
Northwest Pipe Company
39.82
5.77
16.95%
TG
Tredegar
8.53
3.15
58.55%
MEC
Mayville Engineering Company
15.63
-0.59
-3.64%
Ampco-Pittsburgh Corporate Events
Executive/Board ChangesShareholder Meetings
Ampco-Pittsburgh Board Members Resign Ahead of May 15
Neutral
May 9, 2025
On May 8, 2025, Frederick D. DiSanto and Stephen E. Paul announced their resignation from the Ampco-Pittsburgh Corporation’s Board of Directors, effective May 15, 2025, leading to a reduction in the Board’s size from ten to eight members. Additionally, on March 6, 2025, the Board approved an amendment to the 2016 Omnibus Incentive Plan, increasing the shares available for equity-based awards by 500,000, which was subsequently approved by shareholders on May 8, 2025. This move is expected to enhance the company’s ability to offer competitive compensation packages.
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.