Metallus (MTUS) AI Stock Analysis

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Metallus

(NYSE:MTUS)

58Neutral

Metallus has a mixed outlook with a stable balance sheet but operational challenges in profitability and cash flow. Technical indicators suggest bearish sentiment, while valuation remains unattractive. The positive aspects from the earnings call, including growth in order backlog and strategic focus, provide some optimism.

Metallus (MTUS) vs. S&P 500 (SPY)

Market Cap

$548.25M

Dividend YieldN/A

Average Volume (3M)321.54K

Price to Earnings (P/E)30.6

Beta (1Y)1.13

Revenue Growth-23.34%

EPS Growth-128.05%

CountryUS

Employees1,880

SectorBasic Materials

Sector Strength62

IndustrySteel

Share Statistics

EPS (TTM)0.07

Shares Outstanding42,107,990

10 Day Avg. Volume291,501

30 Day Avg. Volume321,539

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.68

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit3.83

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$20.00

Price Target Upside72.27% Upside

Rating ConsensusHold

Number of Analyst Covering1

Metallus Business Overview & Revenue Model

Company DescriptionMetallus (MTUS) is a prominent company operating in the industrial sector, primarily focusing on the production and supply of high-quality metal products. The company specializes in manufacturing a wide range of metal components and materials that serve various industries, including automotive, aerospace, construction, and electronics. Metallus is recognized for its commitment to innovation, precision engineering, and sustainable manufacturing practices, offering customized solutions to meet the diverse needs of its clients.

How the Company Makes MoneyMetallus generates revenue through the sale of its metal products and components to businesses across multiple industries. The company's key revenue streams include direct sales of custom metal parts, bulk supply contracts with large-scale manufacturers, and partnerships with distributors and resellers. Additionally, Metallus may engage in strategic collaborations with industry leaders to co-develop specialized products, enhancing its market reach and revenue potential. The company's focus on high-quality production, coupled with efficient supply chain management, contributes significantly to its earnings. Metallus also invests in research and development to innovate new products and improve existing ones, which can lead to increased demand and profitability.

Metallus Financial Statement Overview

Summary

Metallus has a mixed financial performance with a stable balance sheet but challenges in income statement and cash flow metrics. The company needs to improve profitability and cash conversion. The low leverage is positive, but enhancing operational efficiency and revenue growth remains crucial.

Income Statement

Positive

Metallus has experienced fluctuating revenue and profit margins. The gross profit margin improved significantly from 2020 to 2021 but declined afterwards, indicating potential cost management issues. The net profit margin has been volatile, with a notable decrease in 2022 and 2023. Revenue growth was inconsistent, with declines in 2023 and 2024. The EBIT and EBITDA margins reflect operational challenges, particularly in recent years.

Balance Sheet

Positive

The balance sheet shows a solid equity position with an improving equity ratio over the years, indicating increased stability. The debt-to-equity ratio is low, suggesting conservative leverage. However, there is a slight decline in stockholders' equity in 2024, which may require attention. Overall, the company maintains a strong financial position with manageable debt levels.

Cash Flow

Neutral

Cash flow analysis reveals a decreasing trend in operating cash flow over recent years, impacting free cash flow, which turned negative in 2024. The free cash flow to net income ratio indicates challenges in converting profits into cash. The company has maintained positive operating cash flow, yet fluctuations suggest some cash management difficulties.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.08B	1.36B	1.30B	1.25B	830.70M
	Gross Profit
97.70M	186.50M	101.20M	189.10M	15.60M
	EBIT
10.00M	101.90M	112.10M	202.70M	-46.10M
	EBITDA
61.20M	153.30M	156.00M	244.20M	18.10M
	Net Income Common Stockholders
1.30M	69.40M	65.10M	171.00M	-61.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
240.70M	280.60M	257.20M	259.60M	102.80M
	Total Assets
1.12B	1.18B	1.08B	1.16B	994.00M
	Total Debt
17.10M	24.60M	32.90M	59.40M	99.20M
	Net Debt
-223.60M	-256.00M	-224.30M	-200.20M	-3.60M
	Total Liabilities
426.20M	443.70M	395.50M	494.30M	486.50M
	Stockholders Equity
690.50M	731.60M	686.50M	664.60M	507.50M
Cash Flow		Free Cash Flow
-24.00M	73.70M	107.40M	184.70M	156.60M
	Operating Cash Flow
40.30M	125.30M	134.50M	196.90M	173.50M
	Investing Cash Flow
-10.80M	-49.90M	-21.70M	-4.80M	-6.00M
	Financing Cash Flow
-68.90M	-51.90M	-114.60M	-35.30M	-91.80M

Metallus Technical Analysis

Technical Analysis Sentiment

Negative

Last Price11.61

Price Trends

50DMA

13.18

Negative

100DMA

14.05

Negative

200DMA

15.04

Negative

Market Momentum

MACD

-0.16

Positive

RSI

34.70

Neutral

STOCH

54.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTUS, the sentiment is Negative. The current price of 11.61 is below the 20-day moving average (MA) of 12.83, below the 50-day MA of 13.18, and below the 200-day MA of 15.04, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 34.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTUS.

Metallus Risk Analysis

Metallus disclosed 30 risk factors in its most recent earnings report. Metallus reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Metallus Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRD	73 Outperform	$110.13M	19.53	4.51%	0.99%	-12.19%	-67.95%
WS	64 Neutral	$1.33B	11.95	11.10%	2.46%	-6.82%	-36.02%
MTUS	58 Neutral	$548.25M	30.62	-3.00%	―	-23.34%	-128.05%
ZEUS	58 Neutral	$357.09M	22.92	2.95%	1.96%	-9.65%	-61.57%
RDUS	53 Neutral	$829.14M	―	-41.03%	2.56%	-2.75%	-339.59%
ACNT	50 Neutral	$133.24M	―	-11.17%	―	-14.57%	48.61%
Sector *	49 Neutral	$1.96B	-1.17	-21.28%	3.71%	1.14%	-30.35%

* Basic Materials Sector Average

Performance Comparison

MTUS

Metallus

11.61

-10.72

-48.01%

FRD

Friedman Industries

15.80

-2.54

-13.85%

ZEUS

Olympic Steel

31.05

-20.21

-39.43%

RDUS

Schnitzer Steel Industries

29.34

11.59

65.30%

ACNT

Ascent Industries

12.86

2.54

24.61%

Worthington Steel, Inc.

26.01

-5.09

-16.37%

Metallus Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -11.31%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

Metallus demonstrated strong performance with significant increases in order backlog, shipment growth, and profitability. The company effectively managed costs and showed improvements in safety metrics. However, challenges such as decreased aerospace and defense shipments, high pension contributions affecting cash flow, and unfavorable price/mix effects were noted. Despite these challenges, the company remains optimistic about future growth prospects.

Q1-2025 Updates

Positive Updates

Significant Increase in Order Backlog

Order backlog increased approximately 50% from the same period a year ago due to growing demand for domestic steel.

Improvement in Safety Metrics

Year-over-year improvement in all safety metrics, with a focus on lockout/tagout/tryout and zero incident planning exceeding target rates.

Strong Sequential Growth in Shipments

Overall shipments increased by 17% compared with the fourth quarter, driven by higher industrial, automotive, and energy shipments.

Increased Profitability

Sequential profitability more than doubled, with adjusted EBITDA increasing by $9.4 million to $17.7 million in the first quarter.

Successful Cost Management

Manufacturing costs declined by $12.5 million on a sequential basis, driven by increased cost absorption and lower maintenance costs.

Negative Updates

Decline in Aerospace and Defense Shipments

Aerospace and defense shipments decreased due to production start-up challenges faced by key customers.

High Pension Contributions Impacting Cash Flow

The company made $52.6 million of required pension contributions, driving an operating cash flow outflow of $38.9 million in the first quarter.

Unfavorable Price/Mix Effects

Unfavorable price/mix during the quarter was driven by lower base prices and a higher mix of automotive and distribution shipments.

Company Guidance

During Metallus' first quarter 2025 conference call, the company provided optimistic guidance, highlighting a 17% sequential increase in overall shipments driven by higher demand in industrial, automotive, and energy markets, although aerospace and defense shipments saw a decline. The order backlog increased by approximately 50% year-over-year, reflecting strong market share gains and customer confidence. The company reported net sales of $280.5 million, an increase of $40 million from the previous quarter, and adjusted EBITDA of $17.7 million, up by $9.4 million sequentially. Metallus plans to invest approximately $5 million in safety improvements and expects second-quarter adjusted EBITDA to surpass the first quarter, supported by higher anticipated A&D shipments and recent spot price increases. The company is also benefiting from U.S. government funding, which will support significant capital expenditures, including a $125 million forecast for 2025, with $90 million funded by the government. Despite macroeconomic uncertainties, Metallus remains confident in its strategic focus on cost management, safety, and sustainable profitability, supported by a strong balance sheet and a total liquidity of $432 million at the end of March 2025.

Metallus Corporate Events

Executive/Board ChangesShareholder Meetings

Metallus Shareholders Elect Directors and Ratify Auditor

Positive

May 8, 2025

At the Annual Meeting of Shareholders on May 7, 2025, Metallus shareholders elected four directors for three-year terms, ratified Ernst & Young LLP as the independent auditor for 2025, and approved executive compensation on an advisory basis. These decisions reflect shareholder support for the company’s current leadership and financial oversight, potentially strengthening its governance and operational strategies moving forward.

Spark’s Take on MTUS Stock

According to Spark, TipRanks’ AI Analyst, MTUS is a Neutral.

Metallus’s stock score reflects mixed financial performance with solid balance sheet stability but operational challenges impacting income and cash flow. Technical analysis indicates a neutral to bearish trend, and valuation is unattractive due to significant profitability issues. The earnings call suggests potential growth areas but also highlights ongoing challenges, contributing to a cautious outlook.

To see Spark’s full report on MTUS stock, click here.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures

Metallus Reports Q1 2025 Financial Results

Neutral

May 8, 2025

On May 8, 2025, Metallus reported its first-quarter 2025 financial results, showing net sales of $280.5 million, a 17% increase from the previous quarter, but a 13% decrease compared to the same period last year. The company achieved a net income of $1.3 million and adjusted EBITDA of $17.7 million. Metallus also invested $27.5 million in capital expenditures and repurchased $5.6 million in common shares. The company highlighted its strong order book and market share gains, supported by steel tariffs, and noted increased order bookings. Despite some volatility in the defense supply chain, Metallus remains committed to expanding capacity and supporting the U.S. Army’s munitions production. The company plans to continue strategic investments and share repurchases while focusing on safety and customer service to ensure sustainable profitability.

Spark’s Take on MTUS Stock

According to Spark, TipRanks’ AI Analyst, MTUS is a Neutral.

To see Spark’s full report on MTUS stock, click here.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures

Metallus Reports 2024 Financial Results and Future Plans

Neutral

Feb 27, 2025

On February 27, 2025, Metallus announced its financial results for the fourth quarter and full year of 2024. The company reported fourth-quarter net sales of $240.5 million, a net loss of $21.4 million, and an adjusted EBITDA of $8.3 million. For the full year, net sales were $1.1 billion with a net income of $1.3 million and an adjusted EBITDA of $77.7 million. Despite weak demand and lower shipments in 2024, Metallus invested in assets to improve safety and efficiency, while maintaining training for employees. The company also focused on maintaining partnerships with customers and suppliers. Looking forward, Metallus expects improved profitability in 2025 due to stronger customer order patterns and previous investments. The company plans significant capital expenditures in 2025, supported by government funding, and continues its share repurchase program.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.