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Salzgitter
(OTC:SZGPY)
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Rating:48Neutral
Price Target:
$5.50
▼(-17.04% Downside)
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
Rapid delivery of the P28 savings program indicates measurable execution capability across production, trading, processing, and technology. If sustained, the improved cost base can support margins and cash generation when steel demand and pricing normalize.
Negative Factors
Severe revenue and profit contraction
The sharp revenue decline and continued operating loss show that earnings recovery remains incomplete and highly exposed to the steel cycle. Weak operating momentum can limit internally funded investment, reduce resilience, and make future results dependent on improved demand and spreads.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational efficiency
Rapid delivery of the P28 savings program indicates measurable execution capability across production, trading, processing, and technology. If sustained, the improved cost base can support margins and cash generation when steel demand and pricing normalize.
Read all positive factors
Salzgitter (SZGPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.25B
Dividend Yield0.43%
Average Volume (3M)116.00
Price to Earnings (P/E)45.2
Beta (1Y)1.49
Revenue Growth1.19%
EPS GrowthN/A
CountryUS
Employees24,047
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.10
Shares Outstanding600,970,000
10 Day Avg. Volume0
30 Day Avg. Volume116
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.49
Price to Sales (P/S)0.25
P/FCF Ratio-3.44
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda12.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 shipme...
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.
Read all updates
Q2-2026 Updates
Positive
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
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
36
Negative
| 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 | 320.44M | 43.22M | 478.60M | 624.00M | 1.44B | 1.12B |
| 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
Negative
6.63
Price Trends
6.13
Negative
6.21
Negative
5.83
Negative
Market Momentum
-0.23
Positive
37.20
Neutral
6.99
Positive
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 6.63 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 6.13, and above the 200-day MA of 5.83, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 6.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SZGPY.
Salzgitter Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $11.38B | 15.74 | 5.77% | 3.86% | -0.65% | 18.90% | |
64 Neutral | $48.15B | 27.41 | 3.31% | 1.11% | 3.25% | -27.63% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $9.61B | 30.87 | 2.53% | 2.94% | 8.98% | -21.39% | |
56 Neutral | $6.96B | -7.34 | -15.23% | 6.42% | 4.14% | 52.63% | |
48 Neutral | $3.25B | 45.18 | 1.27% | 0.43% | 1.19% | ― | |
46 Neutral | $1.70B | -3.48 | -18.55% | 12.27% | 9.29% | -26.44% |
* Basic Materials Sector Average
SZGPY
Salzgitter
5.10
1.16
29.26%
MT
ArcelorMittal
62.32
21.86
54.03%
CLF
Cleveland-Cliffs
12.06
-1.84
-13.24%
GGB
Gerdau SA
5.02
1.85
58.61%
SID
Companhia Siderúrgica Nacional
1.23
-0.37
-23.13%
TX
Ternium SA
56.41
21.40
61.15%
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.