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Salzgitter (SZGPY)
OTHER OTC:SZGPY
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Salzgitter
(OTC:SZGPY)
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Rating:58Neutral
Price Target:
$3.50
▲(7.69% Upside)
Salzgitter's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability. The technical analysis shows positive momentum, which is a significant strength. Valuation concerns due to a negative P/E ratio and mixed earnings call sentiment also weigh on the score. The company needs to focus on improving operational efficiency and cash flow management to enhance its financial position.
Salzgitter (SZGPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend Yield0.76%
Average Volume (3M)930.00
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-6.91%
EPS Growth-3915.17%
CountryUS
Employees23,868
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.12
Shares Outstanding600,970,000
10 Day Avg. Volume400
30 Day Avg. Volume930
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit0.80
Enterprise Value/Ebitda6.59
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Salzgitter Business Overview & Revenue Model
Company DescriptionSalzgitter AG (SZGPY) is a leading European steel and technology company headquartered in Salzgitter, Germany. The company operates in various sectors, including steel production, trading, technology, and services. Its core products and services encompass flat steel products, sections, plate, and seamless and welded tubes, catering to diverse industries such as automotive, construction, and engineering. Salzgitter also engages in the trading of industrial goods and raw materials, and provides innovative technology solutions and services.
How the Company Makes MoneySalzgitter AG generates revenue primarily through its steel production and trading operations. The company earns money by producing and selling a wide range of steel products, including flat rolled steel, sections, and tubes, to industries such as automotive, construction, and machinery manufacturing. Additionally, Salzgitter's trading division contributes to its earnings by dealing in industrial goods and raw materials. The company also benefits from its technology and engineering services, which provide solutions and support to various sectors, enhancing its revenue streams. Strategic partnerships and collaborations further aid in expanding its market reach and enhancing competitive advantage.
Salzgitter Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Salzgitter, with strong performance in the Technology segment and effective cost reduction measures being positive aspects. However, these are counterbalanced by challenges in the steel production segment due to weak demand and prices, as well as negative impacts from derivatives and ongoing market uncertainties. The sentiment remains cautious with an emphasis on strategic management and future growth opportunities.Q2-2025 Updates
Positive Updates
Strong Performance of Technology Segment
The Technology segment, particularly KHS, foresees a record year with an EBT well above EUR 100 million. Order intake is also significantly above last year, driven by the success of Plasmax technology, especially in India, and expansion into Africa and the Americas.
Effective Cost Reduction and Performance Program
Salzgitter's performance program, 'Performance 2028', has realized EUR 48 million in savings in the first half of the year, with a target of EUR 97 million by year-end. This is part of a broader effort to achieve EUR 500 million in cost savings by 2028.
Stability in Trading Segment
The Trading segment has shown recovery compared to last year, and restructuring efforts are leading to sustainable improvements with a significant contribution from restructuring activities.
Positive Financial Position
Salzgitter maintains a healthy equity ratio of 42.2%, and cash flow from operating activities was significantly stronger than last year, reaching EUR 81 million.
Negative Updates
Weak Steel Demand and Prices
The steel production segment has been impacted by low demand and weak prices, with revenues flat and sales and earnings down due to low prices and weak demand for heavy plate.
Negative Impact from Derivatives
The reporting date related valuation of derivatives resulted in a negative impact of roughly minus EUR 80 million, compared to a positive EUR 10 million in the first half of '24.
Challenges in Key Markets
Salzgitter faces challenges due to trade disputes, low demand in Germany and the EU, high imports, and pressure from Chinese steel inflows. The fiscal policy effects are not expected until 2026.
Company Guidance
During the analyst conference call for Salzgitter Group's first half of 2025, the company outlined several key metrics and guidance for the rest of the year. The management expects sales to be in the range of EUR 9 billion to EUR 9.5 billion, with EBITDA projected between EUR 300 million and EUR 400 million. The pretax results are anticipated to fall between minus EUR 100 million to zero, while the return on capital employed (ROCE) is expected to slightly increase year-on-year. Additionally, the company reported a healthy equity ratio of 42.2% and a net financial debt projected to be around minus EUR 1.2 billion by year-end. Despite facing challenges such as low steel demand and fluctuating raw material prices, Salzgitter Group is focusing on cost-saving measures, aiming to achieve EUR 500 million in total cost savings by 2028, with EUR 48 million already realized in the first half of 2025. The company also emphasized its commitment to the decarbonization program, SALCOS, and urged policymakers to create a supportive regulatory environment for the steel industry in Europe.Salzgitter Financial Statement Overview
Summary
Salzgitter faces financial challenges with declining revenues and profitability, operational inefficiencies, and negative free cash flow. However, the balance sheet remains relatively stable with manageable leverage and adequate cash reserves.Income Statement
Salzgitter's income statement reveals significant challenges, with the company experiencing a decline in revenue over the past three years. The gross profit margin stood at approximately 31.7% in 2024, which is reasonable for the industry. However, the net profit margin was negative due to a substantial net loss. The company experienced negative EBIT, indicating operational inefficiencies. Although EBITDA is positive, the trajectory shows declining profits, highlighting a need for operational improvements.45
Neutral
Balance Sheet
The balance sheet of Salzgitter shows a moderate financial position with a debt-to-equity ratio of approximately 0.39 in 2024, indicating manageable leverage. The equity ratio is around 42.4%, reflecting a stable equity base. However, the high level of total liabilities relative to assets suggests potential risk if the market conditions worsen. Despite this, the company maintains adequate cash reserves and a reasonable equity structure.60
Neutral
Cash Flow
Salzgitter's cash flow analysis indicates a challenging situation with negative free cash flow in 2024, following a decrease from the previous year. The operating cash flow to net income ratio is skewed due to negative net income. The company needs to focus on improving cash generation from operations and managing capital expenditures effectively to enhance free cash flow.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.43B | 10.01B | 10.79B | 12.55B | 9.77B | 7.09B |
| Gross Profit | 3.05B | 3.17B | 3.37B | 4.16B | 3.54B | 2.35B |
| EBITDA | 368.80M | 478.60M | 624.00M | 1.44B | 1.12B | 94.80M |
| Net Income | -421.20M | -352.20M | 200.10M | 1.08B | 581.10M | -273.90M |
Balance Sheet | ||||||
| Total Assets | 10.31B | 10.47B | 10.50B | 11.10B | 10.25B | 8.24B |
| Cash, Cash Equivalents and Short-Term Investments | 765.20M | 1.00B | 939.70M | 988.40M | 791.50M | 621.40M |
| Total Debt | 0.00 | 1.76B | 1.30B | 1.70B | 1.51B | 1.23B |
| Total Liabilities | 5.96B | 6.02B | 5.67B | 6.25B | 6.90B | 5.56B |
| Stockholders Equity | 4.35B | 4.44B | 4.83B | 4.84B | 3.35B | 2.67B |
Cash Flow | ||||||
| Free Cash Flow | -511.30M | -560.30M | 140.20M | 154.00M | -14.00M | -356.10M |
| Operating Cash Flow | 626.70M | 408.40M | 892.00M | 596.50M | 329.40M | 18.30M |
| Investing Cash Flow | -656.50M | -677.40M | -430.50M | -367.70M | -366.60M | -234.20M |
| Financing Cash Flow | 239.30M | 331.90M | -498.30M | 11.30M | 146.30M | 151.00M |
Salzgitter Technical Analysis
Neutral
3.25
Price Trends
3.06
Positive
2.84
Positive
2.58
Positive
Market Momentum
0.06
Positive
47.18
Neutral
42.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SZGPY, the sentiment is Neutral. The current price of 3.25 is below the 20-day moving average (MA) of 3.49, above the 50-day MA of 3.06, and above the 200-day MA of 2.58, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 42.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SZGPY.
Salzgitter Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $6.62B | 12.44 | 5.77% | 3.07% | -6.55% | -37.93% | |
| ― | $6.59B | 79.99 | 1.99% | 1.21% | -1.61% | -81.36% | |
| ― | $1.63B | 13.57 | 11.22% | 2.00% | -6.75% | -5.18% | |
| ― | $4.67B | 24.11 | 5.84% | ― | -16.81% | -67.68% | |
| ― | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
| ― | $2.03B | -3.99 | -8.94% | 0.76% | -6.91% | -3915.17% | |
| ― | $2.32B | -5.91 | -15.57% | 13.04% | -10.77% | -192.16% |
* Basic Materials Sector Average
SZGPY
Salzgitter
3.25
1.75
116.67%
CMC
Commercial Metals Company
59.36
6.15
11.56%
GGB
Gerdau SA
3.49
0.48
15.95%
SIM
Grupo Simec SA De CV
28.40
2.15
8.19%
SID
Companhia Siderúrgica Nacional
1.76
-0.22
-11.11%
WS
Worthington Steel, Inc.
31.99
-5.39
-14.42%
Salzgitter Corporate Events
Salzgitter AG Earnings Call: Mixed Results Amid Market Challenges
Aug 13, 2025
The recent earnings call for Salzgitter AG Unsponsored ADR painted a mixed picture of the company’s performance and outlook. While there were notable achievements such as improvements in occupational safety and a robust equity ratio, these were counterbalanced by significant challenges. The company faces a decline in crude steel production and weak demand in steel processing, compounded by a substantial negative impact from derivative valuations. Market conditions remain difficult, with low steel demand and high imports affecting overall performance.
Salzgitter AG Reports Challenging First Half 2025
Aug 12, 2025
Salzgitter AG, a prominent player in the steel industry, operates across various sectors including steel production, processing, trading, and technology, with a focus on innovative solutions like low-carbon steel production. In the first half of 2025, Salzgitter AG faced a challenging economic environment, resulting in decreased external sales and a significant drop in earnings before taxes compared to the previous year. The company’s EBITDA also saw a substantial decline, reflecting the tough market conditions. Key financial metrics revealed a downturn in crude steel production, external sales, and earnings across most business units, with the Trading Business Unit showing a slight improvement due to restructuring efforts. The company’s strategic initiatives, such as the SALCOS® transformation program aimed at reducing carbon emissions, continue to progress, albeit with some delays. Looking ahead, Salzgitter AG anticipates moderate improvements in sales volumes and profitability, driven by ongoing efficiency measures and market recovery efforts, while navigating the persistent challenges in the global steel market.
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.