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Salzgitter (SZGPY)
OTHER OTC:SZGPY
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Salzgitter (SZGPY) AI Stock Analysis

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SZGPY

Salzgitter

(OTC:SZGPY)

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Neutral 48 (OpenAI - Gpt-5.6Sol)
Rating:48Neutral
Price Target:
$7.00
▲(5.58% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weak fundamentals—sharp revenue contraction, pressured operating profitability, and especially persistent negative free cash flow. Technicals also remain soft (below key moving averages with negative MACD). These are partly offset by a relatively resilient balance sheet, a very high dividend yield, and a cautiously constructive outlook from management with improved profitability and raised/confirmed FY-2026 guidance, though execution and capital-intensity risks remain significant.
Positive Factors
Operational efficiency gains
P28 is delivering measurable savings across steel production, trading, processing, and technology, indicating broad operational execution rather than reliance on one segment. Completing most of the annual target by midyear can support stronger margins and improve the group’s ability to withstand steel-market cyclicality.
Negative Factors
Sharp revenue contraction and weak operating profit
The steep top-line contraction shows that Salzgitter remains exposed to weak demand and highly cyclical steel conditions. Negative operating profitability indicates that recent net income does not yet represent a durable earnings recovery, leaving margins vulnerable if volumes or realized prices remain subdued.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational efficiency gains
P28 is delivering measurable savings across steel production, trading, processing, and technology, indicating broad operational execution rather than reliance on one segment. Completing most of the annual target by midyear can support stronger margins and improve the group’s ability to withstand steel-market cyclicality.
Read all positive factors

Salzgitter (SZGPY) vs. SPDR S&P 500 ETF (SPY)

Salzgitter Business Overview & Revenue Model

Company Description
Salzgitter AG, a prominent German industrial entity founded in 1858 and based in Salzgitter, conducts its business globally, primarily focusing on steel manufacturing and technological solutions. Its extensive operations are structured into five d...
How the Company Makes Money
Salzgitter AG primarily generates revenue by producing and selling steel and steel-related products and services across its operating segments. A major portion of sales comes from manufacturing and distributing steel products (including flat and l...

Salzgitter Earnings Call Summary

Earnings Call Date:Aug 11, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presents a cautiously positive picture: the company delivered clearly improved profitability and progress on its internal performance program, successfully completed the HKM acquisition with a defined decarbonization plan, and benefits from regulatory tailwinds that have supported prices. At the same time, management highlighted several material risks — market/geopolitical volatility, elevated energy/raw-material price uncertainty, an H1 safety shortfall, working-capital pressure, and large, multi-year restructuring and CapEx programs (HKM, SALCOS) with timing and PPA uncertainties. Overall, the operational and financial improvements and credible transition plans modestly outweigh the execution and market risks, but the outlook remains contingent on successful execution and evolving regulatory/market conditions.
Positive Updates
Improved profitability and earnings
Company reported significant year-on-year earnings improvement across all segments. Adjusted EBT reported at EUR 258 million (management also noted a consolidated figure of EUR 76 million when including the exchangeable-bond valuation) and net result after taxes of EUR 43 million for H1 2026.
Negative Updates
Sales decline driven by trading segment
Group H1 sales were EUR 4.6 billion, down 1.6% YoY, primarily due to lower revenues in the Trade business unit despite improved trading profitability.
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Q2-2026 Updates
Negative
Improved profitability and earnings
Company reported significant year-on-year earnings improvement across all segments. Adjusted EBT reported at EUR 258 million (management also noted a consolidated figure of EUR 76 million when including the exchangeable-bond valuation) and net result after taxes of EUR 43 million for H1 2026.
Read all positive updates
Company Guidance
Salzgitter guided to FY‑2026 sales of up to EUR 10.0 billion, EBITDA of EUR 725–825 million and pretax profit (EBT) of EUR 325–425 million, with ROCE marginally above the prior year and a broadly stable net financial position; group CapEx for 2026 is ~EUR 650 million (including ~EUR 100 million for HKM) and 2027 SALCOS spending is expected at about EUR 0.5 billion (net of funding), while the HKM transformation is a ~EUR 900 million gross project with ~EUR 200 million public funding and an expected net additional cash need to Salzgitter of ~EUR 100 million over the next three years (HKM consolidated from 1 July 2026 and expected to add a mid‑double‑digit million EBITDA contribution in H2), and the P28 performance program target of EUR 122 million is already ~80% achieved (EUR 97 million) after H1.

Salzgitter Financial Statement Overview

Summary
Financial performance is weak overall: the income statement reflects a sharp TTM revenue contraction (~-61%) and pressured operating profitability (negative operating result in TTM), while cash flow is the key drag with deeply negative free cash flow (about -€588M) despite positive operating cash flow (~€422M). The balance sheet is relatively steadier (moderate leverage with ~0.51 debt-to-equity and a meaningful equity cushion), but returns remain below mid-cycle levels.
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
36
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.92B8.63B10.01B10.79B12.55B9.77B
Gross Profit1.56B439.06M3.17B3.37B4.16B3.54B
EBITDA320.44M43.22M478.60M624.00M1.44B1.12B
Net Income57.98M-71.27M-352.20M200.10M1.08B581.10M
Balance Sheet
Total Assets10.85B10.48B10.47B10.50B11.10B10.25B
Cash, Cash Equivalents and Short-Term Investments1.20B1.06B1.00B939.70M988.40M791.50M
Total Debt2.33B2.22B1.76B1.30B1.70B1.51B
Total Liabilities6.31B6.05B6.02B5.67B6.25B6.90B
Stockholders Equity4.53B4.42B4.44B4.83B4.84B3.35B
Cash Flow
Free Cash Flow-587.77M-628.09M-560.30M140.20M154.00M-14.00M
Operating Cash Flow422.28M399.97M408.40M892.00M596.50M329.40M
Investing Cash Flow-391.28M-665.46M-677.40M-430.50M-367.70M-366.60M
Financing Cash Flow415.67M349.06M331.90M-498.30M11.30M146.30M

Salzgitter Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.63
Price Trends
50DMA
6.05
Positive
100DMA
6.18
Positive
200DMA
5.63
Positive
Market Momentum
MACD
0.19
Negative
RSI
64.70
Neutral
STOCH
76.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SZGPY, the sentiment is Positive. The current price of 6.63 is above the 20-day moving average (MA) of 6.26, above the 50-day MA of 6.05, and above the 200-day MA of 5.63, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 76.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SZGPY.

Salzgitter Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$7.77B13.1413.65%1.08%15.23%1535.96%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
$9.10B30.872.53%3.02%8.98%-21.39%
61
Neutral
$5.18B6.403.83%8.18%7.95%-38.27%
54
Neutral
$1.64B-3.51-18.55%12.27%9.29%-26.44%
49
Neutral
$1.84B103.341.52%1.77%11.33%-92.60%
48
Neutral
$4.21B56.401.27%0.34%1.19%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SZGPY
Salzgitter
7.01
4.39
167.15%
CMC
Commercial Metals Company
70.28
11.19
18.94%
GGB
Gerdau SA
4.97
1.91
62.52%
SIM
Grupo Simec SA De CV
26.60
1.60
6.40%
SID
Companhia Siderúrgica Nacional
1.22
-0.24
-16.44%
WS
Worthington Steel, Inc.
36.17
4.76
15.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 17, 2026