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Aperam SA (APEMY)
OTHER OTC:APEMY
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Aperam SA
(OTC:APEMY)
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Rating:70Outperform
Price Target:
$40.00
▲(5.15% Upside)
Aperam SA's overall stock score reflects a balance of moderate financial health and strong technical indicators, with valuation metrics suggesting potential undervaluation. The earnings call highlighted operational challenges but also pointed to areas of strength, particularly in Brazil and future European policy impacts.
Aperam SA (APEMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.68B
Dividend Yield6.05%
Average Volume (3M)41.00
Price to Earnings (P/E)12.5
Beta (1Y)1.08
Revenue Growth0.20%
EPS Growth192.49%
CountryUS
Employees12,007
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.30
Shares Outstanding78,036,690
10 Day Avg. Volume0
30 Day Avg. Volume41
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit0.59
Enterprise Value/Ebitda9.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Aperam SA Business Overview & Revenue Model
Company DescriptionAperam S.A., together with its subsidiaries, engages in the production and sale of stainless and specialty steel products worldwide. It operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties. The company offers range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. It serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. The company distributes its products through a network of service centers, transformation facilities, and sales offices. Aperam S.A. was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg.
How the Company Makes MoneyAperam generates revenue primarily through the sale of its stainless steel and specialty steel products. The company's revenue model is based on the production and distribution of high-quality steel products to various industries, with key revenue streams coming from both domestic and international sales. Additionally, Aperam benefits from long-term contracts with major customers in the automotive and construction sectors, which provide stable income. The company also engages in recycling, contributing to cost savings and sustainability initiatives, which can further enhance profitability. Partnerships with suppliers for raw materials and collaborations with customers for specialized products play a significant role in maintaining its competitive edge and driving earnings.
Aperam SA Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook with several operational challenges, particularly in the alloys division and recycling and renewables, but also highlights strong performance in Brazil and positive expectations for future European policy impacts.Q2-2025 Updates
Positive Updates
Strong Performance in Brazil
Brazil continues with a strong order book and performs well due to being cost-competitive, with expectations of maintaining full load production in Q3.
Positive Outlook for Alloys Division
Despite the current issues, the alloys division is expected to maintain a strong performance with a run rate close to EUR 100 million EBITDA, driven by synergies and operational improvements.
CBAM and European Steel and Metal Action Plan
The company's outlook on the European Steel and Metal Action Plan and CBAM is positive, with expectations of favorable impacts starting in 2026.
Negative Updates
Alloys Division Plant Failure
A failure in one of the plants resulted in a cost impact of EUR 10 million, affecting Q3 with half related to repairs and half to loss of production.
Weakness in Recycling and Renewables
The division experienced a soft start to the year due to declining scrap prices and low offtake, with expectations to reach a normalized EBITDA run rate of EUR 80 million to EUR 85 million.
Pricing Pressure in Europe
Continued decrease in demand and high level of imports in Europe, resulting in low volumes and pricing pressure in Q3.
Company Guidance
During the Aperam Second Quarter 2025 Results Conference Call, CEO Timoteo Di Maulo provided guidance on several key metrics. He discussed the EUR 10 million impact from a plant failure in the alloys division, split equally between repair costs and production loss, affecting Q3 results. The alloys division is expected to maintain a strong performance with an EBITDA run rate close to EUR 100 million, excluding USAP. Despite potential pricing risks in Brazil due to international price fluctuations, the region is projected to maintain full load operations in Q3, with seasonality effects impacting Q4 and Q1. In Europe, while volumes remain low due to demand decreases and import levels, the company is leveraging its flexibility in production to manage costs effectively. The Recycling and Renewables division aims to reach an EUR 80 million annual EBITDA mark, notwithstanding recent scrap market challenges. The anticipated impact of the European Steel and Metal Action plan and CBAM implementation in 2026 is expected to be positive, although exact parameters are still pending.Aperam SA Financial Statement Overview
Summary
Aperam SA shows moderate financial health with strengths in cost management and a debt-free balance sheet, enhancing resilience. However, challenges in revenue growth and cash flow management, along with modest profitability ratios, indicate areas for improvement.Income Statement
Aperam SA has demonstrated a volatile revenue trend with a decline from 2022 to 2023, followed by a slight recovery in 2024. The gross profit margin has significantly improved in 2024, indicating better cost management. However, the net profit margin remains modest, reflecting challenges in controlling operating costs. The EBIT and EBITDA margins show a strong recovery in operational efficiency compared to previous years.65
Positive
Balance Sheet
The balance sheet shows a strong equity position with no debt as of 2024, which significantly reduces financial risk and improves stability. The equity ratio is robust, indicating a solid capital structure. Return on equity has decreased over the years, reflecting reduced profitability relative to equity.72
Positive
Cash Flow
Aperam's cash flow performance has been mixed, with a decline in free cash flow growth due to lower operating cash flow and increased capital expenditures in 2024. The company maintains a healthy operating cash flow to net income ratio, indicating efficient cash conversion. However, the free cash flow to net income ratio has declined, suggesting pressure on cash reserves.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.28B | 6.25B | 6.59B | 8.16B | 5.10B | 3.62B |
| Gross Profit | 6.28B | 449.00M | 330.00M | 1.18B | 1.23B | 368.00M |
| EBITDA | 387.00M | 354.00M | 293.00M | 1.08B | 1.20B | 391.00M |
| Net Income | 192.00M | 231.00M | 203.00M | 625.00M | 968.00M | 175.00M |
Balance Sheet | ||||||
| Total Assets | 5.35B | 5.84B | 6.21B | 6.26B | 5.91B | 3.97B |
| Cash, Cash Equivalents and Short-Term Investments | 239.00M | 216.00M | 443.00M | 457.00M | 524.00M | 358.00M |
| Total Debt | 0.00 | 760.00M | 934.00M | 925.00M | 990.00M | 425.00M |
| Total Liabilities | 2.15B | 2.47B | 2.76B | 2.87B | 2.96B | 1.76B |
| Stockholders Equity | 3.19B | 3.35B | 3.44B | 3.38B | 2.94B | 2.20B |
Cash Flow | ||||||
| Free Cash Flow | 152.00M | 125.00M | 170.00M | 346.00M | 398.00M | 194.00M |
| Operating Cash Flow | 296.00M | 280.00M | 471.00M | 642.00M | 550.00M | 303.00M |
| Investing Cash Flow | -558.00M | -155.00M | -303.00M | -297.00M | -183.00M | -108.00M |
| Financing Cash Flow | 233.00M | -336.00M | -152.00M | -419.00M | -197.00M | -185.00M |
Aperam SA Technical Analysis
Positive
38.04
Price Trends
33.24
Positive
32.04
Positive
30.56
Positive
Market Momentum
1.34
Positive
64.44
Neutral
72.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APEMY, the sentiment is Positive. The current price of 38.04 is above the 20-day moving average (MA) of 36.31, above the 50-day MA of 33.24, and above the 200-day MA of 30.56, indicating a bullish trend. The MACD of 1.34 indicates Positive momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APEMY.
Aperam SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.01B | 11.99 | 4.89% | 7.58% | -16.83% | ― | |
72 Outperform | $6.89B | 83.61 | 1.99% | 1.21% | -1.61% | -81.36% | |
71 Outperform | $6.40B | 12.01 | 5.77% | 3.21% | -6.55% | -37.93% | |
70 Outperform | $2.68B | 12.53 | 5.89% | 6.05% | 0.20% | 192.49% | |
70 Outperform | $31.29B | 11.58 | 4.72% | 1.25% | -4.51% | ― | |
66 Neutral | $4.66B | 13.09 | 10.49% | ― | -18.58% | -35.32% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
APEMY
Aperam SA
38.04
12.51
49.00%
MT
ArcelorMittal
38.82
15.36
65.47%
CMC
Commercial Metals Company
59.72
8.60
16.82%
GGB
Gerdau SA
3.33
0.31
10.26%
SIM
Grupo Simec SA De CV
27.52
0.29
1.07%
TX
Ternium SA
35.60
3.56
11.11%
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.