GrafTech International (EAF) AI Stock Analysis

• Market Cap: $330.38M
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -16.86%
• EPS Growth: 50.05%
• Country: US
• Employees: 1,072
• Sector: Industrials
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.15
• Shares Outstanding: 258,112,950
• 10 Day Avg. Volume: 2,343,717
• 30 Day Avg. Volume: 2,607,358
• PEG Ratio: -0.45
• Price to Book (P/B): -4.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.53
• Enterprise Value/Market Cap: 15.41
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: -251.39
• Enterprise Value/Ebitda: -10.17
• 1Y Price Target: $1.40
• Price Target Upside: 7.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $1.50 ▲(15.38%Upside)

GrafTech International's overall stock score reflects severe financial instability, with declining revenues and negative cash flow being the most significant risks. Technical indicators and valuation metrics show mixed signals, while strategic initiatives highlight potential for future improvement. However, the NYSE delisting notice poses additional risks to investor confidence.

Positive Factors

Cost Management

Management has demonstrated its ability to drive material cost downs.

Financial Performance

GrafTech announced plans to increase prices on non-committed sales volume by 15%, marking the first attempted price increase by the company in years.

Liquidity

Total available liquidity currently stands at ~$464m, which remains sufficient to bridge EAF through the challenging environment.

Negative Factors

Market Environment

The pricing environment currently remains challenging with spot prices declining further, and it's uncertain if the market will fully accept GrafTech's attempted price increase.

Supply and Demand

Competition from excessive India/China capacity and a structurally oversupplied market present challenges.

Trade Policy

There is elevated risk associated with the US potentially implementing tariffs on GrafTech's operations in Mexico and Europe.

GrafTech International Business Overview & Revenue Model

Company Description

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. It offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes. The company sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

How the Company Makes Money

GrafTech International generates revenue primarily through the production and sale of its graphite electrodes, which are vital in the steelmaking process using electric arc furnaces. These electrodes are sold to steel manufacturers around the world, with pricing and demand heavily influenced by global steel production trends. The company benefits from long-term agreements with key customers, ensuring a stable revenue stream. Additionally, GrafTech's control over needle coke production allows it to maintain competitive pricing and cost efficiencies, further enhancing its profitability. Strategic partnerships and investments in R&D also contribute to GrafTech's ability to innovate and maintain a strong market position.

GrafTech International Financial Statement Overview

Summary

GrafTech International faces significant financial challenges, including declining revenues, negative profitability, high leverage, and negative equity. Cash flow constraints are critical, with negative free cash flow and operational cash flow, indicating severe financial instability.

Income Statement

The income statement shows a declining trend in revenue and profitability. The TTM revenue of $514.0M represents a decrease from the previous year's $538.8M, resulting in a negative revenue growth rate. Gross profit margin is low at 18.1%, and the net profit margin is negative due to a net loss of $139.6M. EBITDA margin is also negative, indicating operational challenges.

Balance Sheet

The balance sheet highlights significant leverage issues. The debt-to-equity ratio is not meaningful due to negative equity, raising concerns about financial stability. Stockholders' equity is negative at -$101.5M, reflecting financial distress. However, the company maintains a reasonable level of liquidity with $214.3M in cash and equivalents.

Cash Flow

Cash flow analysis reveals negative trends. Free cash flow is negative at -$105.8M, with a declining operating cash flow. The operating cash flow to net income ratio is negative due to losses, indicating cash flow issues relative to profitability. The free cash flow to net income ratio is also negative, highlighting ongoing cash constraints.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
514.04M	538.78M	620.50M	1.28B	1.35B	1.22B
	Gross Profit
-20.25M	-19.85M	36.21M	554.88M	644.45M	660.50M
	EBIT
-71.64M	-75.22M	-47.09M	474.26M	508.07M	588.61M
	EBITDA
-73.36M	1.67M	-145.21M	546.80M	589.04M	666.69M
	Net Income Common Stockholders
-139.65M	-131.16M	-255.25M	382.96M	388.33M	434.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
214.28M	256.25M	176.88M	134.64M	57.51M	145.44M
	Total Assets
1.21B	1.22B	1.29B	1.60B	1.41B	1.43B
	Total Debt
1.09B	1.09B	930.75M	921.93M	1.03B	1.42B
	Net Debt
874.58M	830.67M	753.88M	787.29M	972.17M	1.27B
	Total Liabilities
1.31B	1.30B	1.21B	1.27B	1.39B	1.76B
	Stockholders Equity
-101.54M	-78.90M	78.25M	337.71M	23.40M	-329.38M
Cash Flow		Free Cash Flow
-105.83M	-74.40M	14.37M	252.46M	384.78M	527.57M
	Operating Cash Flow
-71.75M	-40.09M	68.41M	324.63M	443.04M	563.65M
	Investing Cash Flow
-33.95M	-34.21M	-53.82M	-71.97M	-57.86M	-35.70M
	Financing Cash Flow
155.58M	155.72M	18.71M	-176.27M	-471.79M	-463.68M

GrafTech International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EAF, the sentiment is Positive. The current price of 1.3 is above the 20-day moving average (MA) of 1.05, above the 50-day MA of 0.82, and below the 200-day MA of 1.30, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 72.22 is Negative, neither overbought nor oversold. The STOCH value of 82.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EAF.

GrafTech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BE	73 Outperform	$5.02B	―	0.86%	―	20.95%	―
ENS	67 Neutral	$3.51B	9.97	19.82%	1.07%	-2.94%	22.32%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
ENR	58 Neutral	$1.62B	30.61	33.46%	5.35%	0.39%	-37.01%
PLUG	52 Neutral	$1.47B	―	-83.81%	―	-19.85%	4.94%
EAF	44 Neutral	$330.38M	―	-213.73%	―	-16.86%	50.05%
EOSE	43 Neutral	$1.00B	―	125.43%	―	37.60%	-161.38%

GrafTech International Corporate Events

GrafTech International Holds Annual Stockholders Meeting

GrafTech International Ltd. held its Annual Meeting of Stockholders on May 8, 2025, where several key proposals were voted on. The election of Michel J. Dumas and Eric V. Roegner as directors, the ratification of Deloitte & Touche LLP as the accounting firm, and the approval of executive compensation were all passed. Additionally, stockholders decided to hold an advisory vote on executive compensation annually.

GrafTech Faces NYSE Delisting Notice for Low Stock Price

On April 15, 2025, GrafTech International received a notice from the New York Stock Exchange (NYSE) for noncompliance with the continued listing standard due to its stock price falling below $1.00 per share over a consecutive 30 trading-day period. The company plans to address this issue within a six-month cure period, considering options like a reverse stock split, and aims to maintain its NYSE listing. The notice does not immediately affect the stock’s listing or the company’s business operations, but failure to comply could lead to suspension and delisting, impacting stock liquidity and market price.