Ferroglobe (GSM) AI Stock Analysis

• Market Cap: $983.52M
• Dividend Yield: 1.04%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.80
• Revenue Growth: -8.59%
• EPS Growth: -256.43%
• Country: US
• Employees: 3,283
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.08
• Shares Outstanding: 186,625,870
• 10 Day Avg. Volume: 1,435,457
• 30 Day Avg. Volume: 1,040,491
• PEG Ratio: -0.32
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 4.28
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 2.15
• Enterprise Value/Ebitda: 281.76
• 1Y Price Target: $5.00
• Price Target Upside: -5.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $5.00 ▼(-5.30% Downside)

Ferroglobe's stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability. Technical analysis shows strong bullish momentum, but overbought conditions suggest caution. Valuation concerns persist due to negative earnings, and the earnings call reflects mixed sentiment with both positive growth and significant market uncertainties.

Ferroglobe Business Overview & Revenue Model

Company Description

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics, as well as silicon metal for primary and secondary aluminum producers; silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. The company also offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Further, the company operates quartz mines in Spain, South Africa, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom. Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.U.

How the Company Makes Money

Ferroglobe generates revenue primarily through the sale of silicon metal and ferrosilicon products to various industries, including steel production, chemical manufacturing, and renewable energy. Key revenue streams include long-term contracts with major customers, spot market sales, and customized products tailored to specific industry needs. The company also benefits from strategic partnerships with firms in the automotive and electronics sectors, which enhance its market reach and stability. Additionally, fluctuations in global silicon prices can significantly impact earnings, making market conditions a crucial factor in the company’s financial performance.

Ferroglobe Financial Statement Overview

Summary

Ferroglobe faces significant financial challenges, with declining revenues and profitability, as well as negative growth in free cash flow. While leverage is manageable, the company struggles with operational inefficiencies and cash flow generation.

Income Statement

Ferroglobe's income statement shows a decline in revenue and profitability. The TTM data indicates a negative net profit margin of -3.80% and a gross profit margin of 30.70%, reflecting challenges in maintaining profitability. The EBIT margin is negative, indicating operational inefficiencies. Revenue growth has been negative, suggesting a contraction in sales.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.18 in the TTM, indicating manageable leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is not explicitly calculated, but the relatively low debt levels suggest some financial stability.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, down by 93.91% in the TTM. The operating cash flow to net income ratio is 0.44, indicating limited cash generation relative to net income. The free cash flow to net income ratio is 0.65, suggesting some cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	1.64B	1.65B	2.60B	1.78B	1.14B
Gross Profit	355.16M	616.81M	770.75M	1.24B	496.68M	247.41M
EBITDA	2.71M	134.46M	268.34M	734.38M	128.58M	-47.26M
Net Income	-104.55M	23.54M	82.66M	440.31M	-100.33M	-188.67M
Balance Sheet
Total Assets	1.66B	1.47B	1.76B	1.98B	1.53B	1.39B
Cash, Cash Equivalents and Short-Term Investments	148.08M	138.54M	136.47M	317.94M	114.50M	103.72M
Total Debt	220.04M	208.61M	302.19M	443.15M	557.62M	504.55M
Total Liabilities	848.25M	638.20M	888.88M	1.21B	1.19B	970.78M
Stockholders Equity	812.64M	720.51M	748.06M	771.14M	335.07M	421.06M
Cash Flow
Free Cash Flow	8.28M	167.09M	91.91M	351.72M	-28.94M	121.36M
Operating Cash Flow	76.26M	243.26M	178.37M	405.02M	-1.34M	154.27M
Investing Cash Flow	-67.78M	-66.94M	-81.81M	-61.68M	-23.85M	-31.94M
Financing Cash Flow	-22.71M	-175.51M	-282.15M	-140.46M	10.45M	-113.33M

Ferroglobe Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSM, the sentiment is Positive. The current price of 5.28 is above the 20-day moving average (MA) of 4.50, above the 50-day MA of 4.30, and above the 200-day MA of 3.95, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 79.62 is Negative, neither overbought nor oversold. The STOCH value of 88.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSM.

Ferroglobe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAMY	66 Neutral	$1.12B	―	-3.27%	―	178.66%	82.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GSM	58 Neutral	$983.52M	27.86	-12.38%	1.04%	-8.59%	-256.43%
NEXA	53 Neutral	$676.76M	―	-9.63%	1.88%	8.66%	66.06%
CMP	49 Neutral	$792.92M	―	-40.17%	1.61%	7.27%	27.35%

Ferroglobe Corporate Events

Ferroglobe PLC Reports Strong Q2 2025 Results Amid Market Challenges

On August 5, 2025, Ferroglobe PLC announced its financial results for the second quarter of 2025, highlighting a 25.9% increase in sales compared to the previous quarter, driven by higher sales volumes and pricing in silicon metal and manganese-based alloys. Despite challenges such as aggressive imports from China and geopolitical uncertainties, the company reported an adjusted EBITDA of $21.6 million and a net cash position of $10.3 million. The announcement also noted the positive impact of U.S. antidumping duties on the ferrosilicon market and the company’s strategic moves, including share repurchases and dividend declarations, to strengthen its market position and shareholder value.