Salzgitter (SZGPY) AI Stock Analysis

Salzgitter

(Other OTC:SZGPY)

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Rating:56Neutral

Price Target:$5.50▲(4.60% Upside)

Action:reiterated

Date:08/18/26

The stock scores moderately at 56, as weakened but slowly recovering financial performance with fragile earnings and negative free cash flow, alongside only mid-grade balance-sheet strength, weighs heavily despite signs of margin improvement. A rich valuation on current earnings, combined with an unusually high indicated dividend yield that may not be sustainable, further constrains the score. The latest earnings call adds a positive tilt through upgraded guidance, improved profitability, progress on the P28 program and the HKM-driven green-steel strategy, but these are balanced by substantial execution, capex and regulatory risks.

Positive Factors

Efficiency program deliveryRapid delivery against the P28 target indicates tangible cost and productivity improvements across steel production, trading, processing, and technology. If sustained, these gains can strengthen margins and partially offset cyclical pricing pressure over the next several quarters.

Negative Factors

Severe revenue contractionThe sharp top-line contraction shows that Salzgitter remains exposed to weak volumes and difficult steel-market conditions. Continued revenue pressure can reduce capacity utilization, limit operating leverage, and make recent profitability improvements harder to sustain through the cycle.

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

Earnings Call Date:Aug 10, 2026(Q2-2026)|% Change Since:-13.29%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

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.

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

Cyclical earnings have weakened markedly since the 2021–2022 peak, with materially lower revenue, fragile low-margin profitability and persistently negative free cash flow, partially offset by a solid, moderately leveraged balance sheet and resilient operating cash generation, keeping overall fundamentals only mid-range.

Income Statement

46Neutral

Balance Sheet

64Positive

Cash Flow

54Neutral

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price5.26

Price Trends

50DMA5.85Negative

100DMA5.91Negative

200DMA5.84Negative

Market Momentum

MACD-0.17Negative

RSI46.88Neutral

STOCH56.35Neutral

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

UnderperformOutperform

Sector (61)

Financial Indicators

SZGPY against its peers
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%
SZGPY	56Neutral	$3.17B	44.02	1.27%	0.45%	1.19%	―
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%
SID	43Neutral	$940.51M	-2.14	-18.55%	―	9.29%	-26.44%

* Basic Materials Sector Average

Performance Comparison

SZGPY and its peers over the selected period
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%

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

Salzgitter AI Stock Analysis