Steppe Cement (STCM) AI Stock Analysis

• Market Cap: £38.32M
• Dividend Yield: 13.57%
• Average Volume (3M): 19.59K
• Price to Earnings (P/E): 53.0
• Beta (1Y): 0.35
• Revenue Growth: 0.93%
• EPS Growth: -80.00%
• Country: UK
• Employees: 794
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 219,000,000
• 10 Day Avg. Volume: 29,419
• 30 Day Avg. Volume: 19,589
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £17.00
• Price Target Upside: -2.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: 17.00p ▼(-2.86% Downside)

Steppe Cement's overall score reflects solid financial health, with strong cash flow and low leverage being key strengths. However, technical indicators suggest weak market momentum, and the high P/E ratio raises valuation concerns. The high dividend yield and positive corporate events provide a balanced outlook, but improvements in revenue growth and asset management are necessary for a higher score.

Steppe Cement Business Overview & Revenue Model

Company Description

Steppe Cement (STCM) is a leading cement manufacturer based in Kazakhstan, primarily engaged in the production and distribution of high-quality cement products for the construction industry. The company operates in the building materials sector, focusing on the production of Ordinary Portland Cement and other specialized cement products. Steppe Cement is committed to sustainability and innovation, ensuring that its manufacturing processes align with environmental standards while meeting the growing demands of the construction market in the region.

How the Company Makes Money

Steppe Cement generates revenue primarily through the sale of its cement products to various sectors, including residential, commercial, and infrastructure construction. The company benefits from a diversified customer base, which includes contractors, builders, and distributors. Key revenue streams include bulk sales of cement, as well as packaged products for retail distribution. Additionally, Steppe Cement capitalizes on strategic partnerships with construction companies and government projects, which provides a stable demand for its products. The company's profitability is also enhanced by its efficient production processes, cost management strategies, and economies of scale achieved through its manufacturing facilities.

Steppe Cement Financial Statement Overview

Summary

Steppe Cement demonstrates a mixed financial performance. The company maintains strong cash generation and low leverage, but faces challenges in revenue growth and margin pressures. The stable balance sheet and robust cash flow are offset by declining asset and equity bases, indicating potential areas for improvement.

Income Statement

Steppe Cement's income statement shows moderate performance with some areas of concern. The revenue growth has been inconsistent, with a slight increase in the latest year but previously showing a decline. The gross profit margin has weakened over recent years, indicating potential cost pressures. EBIT and EBITDA margins have also decreased significantly, reflecting challenges in operational efficiency. However, the company remains profitable with a positive net profit margin, although it has decreased sharply from previous years.

Balance Sheet

The balance sheet of Steppe Cement indicates a stable financial position with low debt levels. The debt-to-equity ratio is favorable, suggesting prudent financial management and low leverage. Equity ratio remains strong, highlighting a solid asset base funded by equity. However, a decline in total assets and stockholders' equity over the years may signal a need for caution in asset management and potential risks in value retention.

Cash Flow

Steppe Cement's cash flow demonstrates strong operational capabilities with consistent operating cash flow generation. Free cash flow is positive and has shown significant growth, indicating effective capital expenditure management. The operating cash flow to net income ratio is robust, suggesting effective conversion of income into cash. This overall cash flow strength provides the company with flexibility for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.26M	84.92M	81.76M	86.73M	84.58M	74.77M
Gross Profit	19.94M	23.36M	24.20M	37.62M	39.74M	32.33M
EBITDA	5.53M	6.81M	11.69M	29.98M	30.96M	23.13M
Net Income	969.42K	997.29K	4.53M	17.88M	17.07M	11.12M
Balance Sheet
Total Assets	86.47M	79.17M	95.82M	88.00M	86.61M	81.27M
Cash, Cash Equivalents and Short-Term Investments	2.04M	6.06M	6.44M	4.14M	10.14M	8.21M
Total Debt	8.23M	5.21M	6.48M	6.79M	7.64M	10.70M
Total Liabilities	26.59M	22.12M	25.12M	22.92M	21.03M	23.33M
Stockholders Equity	59.89M	57.05M	70.70M	65.08M	65.58M	57.94M
Cash Flow
Free Cash Flow	-1.88M	9.63M	2.59M	6.56M	12.90M	16.70M
Operating Cash Flow	627.89K	11.10M	5.65M	14.33M	19.12M	19.81M
Investing Cash Flow	-1.47M	-1.28M	-2.08M	-7.11M	-5.71M	-2.81M
Financing Cash Flow	-1.80M	-9.46M	-1.32M	-12.60M	-11.22M	-17.01M

Steppe Cement Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STCM, the sentiment is Positive. The current price of 17.5 is above the 20-day moving average (MA) of 17.50, above the 50-day MA of 17.17, and above the 200-day MA of 16.39, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 95.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:STCM.

Steppe Cement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBH	70 Outperform	£88.26M	16.84	6.36%	4.36%	-0.29%	-33.41%
MSLH	67 Neutral	£429.87M	18.15	4.69%	4.28%	1.31%	10.19%
STCM	63 Neutral	£38.32M	53.03	1.42%	13.57%	0.93%	-80.00%
FORT	60 Neutral	£386.69M	24.64	7.78%	2.12%	15.99%	96.05%
IBST	59 Neutral	£535.95M	44.09	3.82%	2.46%	5.58%	66.49%
ECOB	48 Neutral	£4.61M	-0.90	-44.35%	―	868.30%	-24.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Steppe Cement Corporate Events

Steppe Cement Announces AGM Resolutions and Director Re-elections

Steppe Cement Limited announced the successful passing of resolutions at its Annual General Meeting held on 25 July 2025. The resolutions included the adoption of the audited financial statements for the year ended 31 December 2024 and the re-election of four directors, indicating a stable governance structure and continuity in leadership.

Steppe Cement Invites Shareholders to Virtual AGM

Steppe Cement Limited has announced that its Annual General Meeting (AGM) will be held via Zoom, allowing shareholders to engage directly with the Board of Directors. Shareholders are encouraged to submit their attendance requests and proof of share ownership by email before the deadline to participate in the meeting.

Steppe Cement Sees Growth in Sales Amid Market Challenges

In the first half of 2025, Steppe Cement reported a significant increase in sales volume and turnover, with an 18.2% rise in cement sales and a 35% increase in turnover compared to the same period in 2024. Despite inflationary pressures and increased costs, particularly in transport and utilities, the company managed to improve production levels, although its market share slightly decreased to 13%. The domestic cement market experienced a 21% growth, driven by favorable weather and increased construction activities, while exports decreased and imports rose. New cement plant projects in Kazakhstan indicate potential shifts in market dynamics.

Steppe Cement Reports Resilient 2024 Performance Amid Market Challenges

Steppe Cement reported stable revenue growth for 2024, driven by increased cement consumption due to infrastructure demand, despite facing cost inflation and competitive pressures. The company completed an upgrade of its Line 6, enhancing clinker production, and maintained operational efficiency, although net profit declined due to rising input costs and currency effects. Looking ahead, Steppe Cement plans to focus on cost efficiency and strategic investments to support production growth while managing market competition and rising electricity costs.

Steppe Cement Announces 2025 AGM and Key Resolutions

Steppe Cement Limited has announced its Annual General Meeting scheduled for 25 July 2025 in Kuala Lumpur, Malaysia. The meeting will address key resolutions, including the adoption of audited financial statements for 2024 and the re-election of several directors. The announcement underscores the company’s commitment to transparency and governance, which may impact its operational strategies and stakeholder relations.