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Salzgitter (SZGPY) AI Stock Analysis
Salzgitter
(Other OTC:SZGPY)
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.
Salzgitter (SZGPY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.84B
- Dividend Yield
- 0.45%
- Average Volume (3M)
- 2,665
- Price to Earnings (P/E)
- 44.0
- Beta (1Y)
- 1.52
- Revenue Growth
- 1.19%
- EPS Growth
- ―
- Country
- US
- Employees
- 24,047
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Steel
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 dist...
How the Company Makes Money
Salzgitter AG primarily makes money by manufacturing and selling steel and steel-based products to industrial end markets. Its revenue model is centered on (1) sales of steel and rolled/processed steel products, where earnings are driven by shipment...
Salzgitter Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
44NeutralBalance Sheet
62PositiveCash Flow
36Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.92B | 8.63B | 10.01B | 10.79B | 12.55B | 9.77B |
| Gross Profit | 1.56B | 439.06M | 3.17B | 3.37B | 4.16B | 3.54B |
| EBITDA | 270.49M | 43.22M | 172.98M | 628.90M | 1.45B | 1.28B |
| Net Income | 57.98M | -71.27M | -352.20M | 200.10M | 1.08B | 581.10M |
Balance Sheet | ||||||
| Total Assets | 10.85B | 10.48B | 10.47B | 10.50B | 11.10B | 10.25B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.06B | 1.00B | 939.70M | 988.40M | 791.50M |
| Total Debt | 2.33B | 2.22B | 1.76B | 1.30B | 1.70B | 1.51B |
| Total Liabilities | 6.31B | 6.05B | 6.02B | 5.67B | 6.25B | 6.90B |
| Stockholders Equity | 4.53B | 4.42B | 4.44B | 4.83B | 4.84B | 3.35B |
Cash Flow | ||||||
| Free Cash Flow | -587.77M | -628.09M | -560.30M | 140.20M | 154.00M | -14.00M |
| Operating Cash Flow | 422.28M | 399.97M | 408.40M | 892.00M | 596.50M | 329.40M |
| Investing Cash Flow | -391.28M | -665.46M | -677.40M | -430.50M | -367.70M | -366.60M |
| Financing Cash Flow | 415.67M | 349.06M | 331.90M | -498.30M | 11.30M | 146.30M |
Salzgitter Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SZGPY, the sentiment is Negative. The current price of 5.26 is below the 20-day moving average (MA) of 5.26, below the 50-day MA of 5.85, and below the 200-day MA of 5.84, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 56.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SZGPY.
Salzgitter Peers Comparison
Overall Rating
TX72.5Outperform
GGB63Neutral
CLF54Neutral
MT53Neutral- SZGPY48Neutral
SID43Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TX | 73Outperform | $10.36B | 14.58 | 5.77% | 4.17% | -0.65% | 18.90% |
| GGB | 63Neutral | $8.52B | 15.56 | 5.06% | 3.23% | 10.25% | 4.20% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| CLF | 54Neutral | $8.13B | -16.01 | -8.14% | ― | 8.10% | 75.20% |
| MT | 53Neutral | $44.68B | 25.04 | 3.31% | 1.21% | 3.25% | -27.63% |
| SZGPY | 48Neutral | $3.17B | 44.02 | 1.27% | 0.45% | 1.19% | ― |
| SID | 43Neutral | $940.51M | -2.14 | -18.55% | ― | 9.29% | -26.44% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SZGPY | Salzgitter Ag Unsponsored ADR | 5.26 | 2.02 | 62.43% | |
| MT | ArcelorMittal | 59.81 | 22.08 | 58.51% | |
| CLF | Cleveland-Cliffs | 14.25 | 2.38 | 20.05% | |
| GGB | Gerdau | 4.66 | 1.29 | 38.36% | |
| SID | Companhia Siderúrgica Nacional | 0.71 | -1.00 | -58.43% | |
| TX | Ternium | 52.77 | 18.70 | 54.90% |
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