GrafTech International (EAF) AI Stock Analysis

• Market Cap: $310.87M
• Dividend Yield: N/A
• Average Volume (3M): 302.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -3.66%
• EPS Growth: 32.11%
• Country: US
• Employees: 1,072
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.03
• Shares Outstanding: 25,820,110
• 10 Day Avg. Volume: 247,042
• 30 Day Avg. Volume: 302,172
• PEG Ratio: 0.70
• Price to Book (P/B): -56.50
• Price to Sales (P/S): 8.27
• P/FCF Ratio: -59.91
• Enterprise Value/Market Cap: 4.01
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: -615.79
• Enterprise Value/Ebitda: 172.87
• 1Y Price Target: $15.33
• Price Target Upside: 18.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $11.50 ▼(-10.78% Downside)

GrafTech International's overall stock score is primarily impacted by its significant financial challenges, including declining revenues, high leverage, and negative equity. Technical indicators also suggest a bearish trend, and the valuation is unattractive due to negative earnings. While the earnings call provided some positive insights into sales growth and cost reductions, these are not enough to offset the broader financial and market challenges.

Positive Factors

Sales Volume Growth

The increase in sales volume indicates strong demand for GrafTech's products, suggesting potential for market share expansion and revenue growth.

Cost Reduction

Effective cost management enhances margin sustainability, improving profitability and competitiveness in a challenging market.

Positive Cash Flow

Strong cash generation supports financial stability and provides resources for strategic investments and debt management.

Negative Factors

Declining Revenue

Ongoing revenue decline indicates challenges in maintaining market position and could strain financial resources over time.

High Leverage

High leverage and negative equity pose solvency risks, limiting financial flexibility and increasing vulnerability to market fluctuations.

Pricing Challenges

Falling prices due to competitive pressures, particularly from low-priced exports, could erode margins and impact long-term profitability.

GrafTech International Business Overview & Revenue Model

Company Description

GrafTech International Holdings Inc. is a global leader in the production of graphite electrodes, essential components used in electric arc furnaces (EAFs) for steel manufacturing. The company operates primarily in the industrial materials sector, focusing on providing high-quality graphite products and services. GrafTech's core offerings include graphite electrodes, needle coke, and other related materials, which are critical for various applications in steel and aluminum production, as well as in other industries requiring high-performance materials.

How the Company Makes Money

GrafTech International generates revenue primarily through the sale of graphite electrodes, which are sold to steel manufacturers and other customers operating electric arc furnaces. The company employs a direct sales model, working closely with clients to meet their specific material needs. Additional revenue streams include the sale of needle coke, a key raw material used in the production of graphite electrodes. GrafTech also benefits from strategic partnerships with major steel producers, which help secure long-term contracts and stabilize revenue. Market dynamics, such as global steel demand and pricing volatility, significantly influence GrafTech's earnings, as the company's profitability is closely tied to the price of graphite electrodes and the overall health of the steel industry.

GrafTech International Financial Statement Overview

Summary

GrafTech International is facing significant financial challenges across all verticals. The income statement reflects declining revenues and profitability, while the balance sheet reveals high leverage and negative equity. Cash flow issues further compound the company's financial difficulties, raising concerns about its ability to sustain operations without substantial improvements or restructuring.

Income Statement

GrafTech International's income statement shows significant challenges. The company has experienced a consistent decline in revenue and profitability over recent years. The TTM data reveals negative gross profit and net profit margins, indicating operational inefficiencies and substantial losses. Despite a slight revenue growth in the TTM period, the overall trajectory remains concerning with negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet highlights critical financial instability, with negative stockholders' equity and a high debt-to-equity ratio. This indicates significant leverage and potential solvency risks. The return on equity is positive in the TTM period, but this is due to negative equity, which distorts the metric. The equity ratio is also negative, further emphasizing financial distress.

Cash Flow

Cash flow analysis shows a negative trend with declining operating and free cash flows. The TTM data indicates negative operating cash flow and free cash flow, although the free cash flow to net income ratio is positive due to substantial net losses. The company faces challenges in generating sufficient cash to cover its operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	521.89M	538.78M	620.50M	1.28B	1.35B	1.22B
Gross Profit	-2.03M	-22.19M	26.66M	545.40M	653.70M	655.83M
EBITDA	7.22M	1.67M	-145.21M	546.80M	589.04M	666.69M
Net Income	-204.19M	-131.16M	-255.25M	382.96M	388.33M	434.37M
Balance Sheet
Total Assets	1.11B	1.22B	1.29B	1.60B	1.41B	1.43B
Cash, Cash Equivalents and Short-Term Investments	177.63M	256.25M	176.88M	134.64M	57.51M	145.44M
Total Debt	1.14B	1.09B	930.75M	921.93M	1.03B	1.42B
Total Liabilities	1.30B	1.30B	1.21B	1.27B	1.39B	1.76B
Stockholders Equity	-194.36M	-78.90M	78.25M	337.71M	23.40M	-329.38M
Cash Flow
Free Cash Flow	-120.44M	-74.40M	22.52M	252.46M	384.78M	527.57M
Operating Cash Flow	-87.14M	-40.09M	76.56M	324.63M	443.04M	563.65M
Investing Cash Flow	-33.01M	-34.21M	-53.82M	-71.97M	-57.86M	-35.70M
Financing Cash Flow	155.55M	155.72M	18.71M	-176.27M	-471.79M	-463.68M

GrafTech International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.89
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EAF, the sentiment is Neutral. The current price of 12.89 is below the 20-day moving average (MA) of 15.44, below the 50-day MA of 13.58, and above the 200-day MA of 11.34, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 23.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EAF.

GrafTech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	78 Outperform	$4.77B	15.11	18.22%	0.77%	6.17%	20.86%
ENR	68 Neutral	$1.61B	6.80	164.19%	5.03%	1.15%	2358.45%
PLPC	68 Neutral	$1.02B	27.56	8.33%	0.38%	15.93%	12.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PLUG	47 Neutral	$3.09B	―	-84.40%	―	-1.70%	9.93%
EAF	43 Neutral	$310.87M	-1.53	―	―	-3.66%	32.11%
FCEL	43 Neutral	$242.86M	―	-29.51%	―	78.82%	-20.81%

GrafTech International Corporate Events

Graftech Intl’s Persistent Business Risks Highlighted in Recent Disclosures

Graftech Intl faces ongoing business risks as outlined in their previous filings, with no significant updates reported in their recent disclosures. The reiteration of these risk factors suggests that potential challenges identified in their annual and quarterly reports may still be relevant. Stakeholders should be aware that the presence of these risks does not necessarily indicate their absence in current operations. Continuous monitoring and assessment are essential to understand the potential impact on Graftech Intl’s business performance.

GrafTech’s Earnings Call: Growth Amid Challenges

During GrafTech International’s latest earnings call, the sentiment was a mix of optimism and caution. The company showcased strong sales volume growth, particularly in the U.S., and highlighted significant cost reductions. However, challenges with pricing dynamics led to a reported net loss for the quarter. While the steel industry shows signs of potential recovery, current market conditions remain difficult.

GrafTech International Approves Reverse Stock Split

On August 14, 2025, GrafTech International Ltd. held a Special Meeting of Stockholders where a proposal for a reverse stock split was approved. The Board of Directors subsequently decided on a 1-for-10 reverse stock split, effective August 29, 2025, reducing the number of authorized shares of common and preferred stock proportionally. This move is expected to impact the company’s stock trading on the NYSE and reflects GrafTech’s strategic financial adjustments.

The most recent analyst rating on (EAF) stock is a Hold with a $2.20 price target. To see the full list of analyst forecasts on GrafTech International stock, see the EAF Stock Forecast page.

GrafTech COO Jeremy Halford Announces Resignation

On August 8, 2025, GrafTech International announced that its Executive Vice President and Chief Operating Officer, Jeremy S. Halford, plans to resign from his position effective September 12, 2025, to pursue another opportunity. His departure is not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (EAF) stock is a Hold with a $2.20 price target. To see the full list of analyst forecasts on GrafTech International stock, see the EAF Stock Forecast page.