Ferroglobe PLC (GSM) | Investment Case

1. Company Snapshot

1.a. Company Description

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally.It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics, as well as silicon metal for primary and secondary aluminum producers; silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel.The company also offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron.

In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon.Further, the company operates quartz mines in Spain, South Africa, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France.It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers.

The company was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015.The company was incorporated in 2015 and is headquartered in London, the United Kingdom.Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.U.

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1.b. Last Insights on GSM

Ferroglobe PLC's recent performance was driven by a favorable final decision in the U.S. ferrosilicon case, which is expected to have a positive impact on the company's future earnings. Additionally, the preliminary EU safeguard decision, expected by June, may also provide relief to the company. Furthermore, the company's increased quarterly cash dividend to $0.014 per share in March, up 8% over the prior quarter, demonstrates its commitment to returning value to shareholders. The repurchase of 720,008 shares during the first quarter also indicates the company's confidence in its future prospects.

1.c. Company Highlights

Last Price	4.71
Change Percentage	0.75%
Open	4.68
Previous Close	4.68
Market Cap ( Millions)	880
Volume	125957
Year High	5.74
Year Low	2.97
M A 50	4.59
M A 200	4.09

FCF Yield	0.94%
Dividend Yield	1.17%
ROE	-13.97%
Debt / Equity	16.84%
Net Debt / EBIDTA	48.93%
Price To Book	1.09
Price Earnings Ratio	-8.48
Price To FCF	106.31
Price To sales	0.59
EV / EBITDA	325.67

2. Ferroglobe's Q3 2025 Earnings: Navigating Trade Challenges and Operational Efficiencies

Ferroglobe reported a decline in sales by 19% to $312 million in the third quarter, while raw material costs decreased by 29%. Adjusted EBITDA decreased by 15% to $18 million, resulting in a margin of 5.9%. The company's EPS came out at -$0.02, missing estimates of $0.05. The adjusted EBITDA and sales figures indicate that the company is facing significant challenges, primarily due to unfair trade practices in the U.S. and EU. Despite these challenges, Ferroglobe generated $80 million in adjusted EBITDA for the nine months ended September 2025 and improved free cash flow.

Publication Date: Dec -02

                                    📋 Highlights
                                    Trade Measures Progress:
                                                U.S. preliminary countervailing duties and EU safeguard investigations advance, with final decisions expected by late 2025, targeting silicon metal and alloy imports.
Coreshell Partnership Milestone:
                                                Commercial-scale pilot batteries shipped to OEMs, with commercial deployment expected by Q1 2026 and a pending long-term silicon metal supply agreement.
Operational & Financial Performance:
                                                Adjusted EBITDA of $18M (5.9% margin) despite 19% sales decline to $312M; $80M in free cash flow generated amid raw material cost reductions.
Strategic Cost Controls:
                                                $60M annual capex (down from $80-85M); hiring freeze, CEO-approved hiring, and discretionary spending cuts to preserve cash flow and balance sheet strength.
2026 Outlook:
                                                Anticipate $0.04/share dividend, price recovery in U.S. silicon metal, and demand growth in Europe (manganese, ferrosilicon) due to trade actions and supply chain policies.

                                

Operational Efficiencies and Strategic Initiatives

Ferroglobe has been successful in improving productivity and expects to continue targeting operational efficiencies. The company signed a new multi-year energy agreement in France, guaranteeing a competitive energy price and providing flexibility to operate plants for up to 12 months a year. Additionally, Ferroglobe's partnership with Coreshell is advancing, with Coreshell shipping commercial-scale pilot batteries to leading automotive OEMs and expecting to achieve commercial deployment of advanced battery systems in early 2026. The company has also finalized a joint development agreement and expects to establish a long-term supply agreement for high-quality silicon metal.

Trade Actions and Market Outlook

Ferroglobe is confident that trade measures in the U.S. and EU will improve the business environment significantly in 2026. The company expects demand signals to pick up, particularly in Europe, where protection of supply chains and decisions on steel production are expected to drive demand for manganese alloys and ferrosilicon. In North America, Ferroglobe sees a more robust order portfolio for ferrosilicon in 2026 and expects price restoration for silicon metal due to the U.S. ferrosilicon case and potential action on imports of siloxane from China. Analysts estimate next year's revenue growth at 22.6%, indicating a positive outlook for the company's future performance.

Valuation and Capital Allocation

Ferroglobe's current valuation metrics indicate a relatively low P/S Ratio of 0.56 and a P/B Ratio of 1.03. However, the EV/EBITDA ratio stands at 308.08, suggesting that the company's valuation is highly dependent on its future EBITDA performance. The company may consider share buybacks when market conditions improve but won't take on debt for this purpose. They believe their share price is undervalued and will resume their share buyback program at the right time. With a Dividend Yield of 1.23%, Ferroglobe offers a relatively attractive return for investors.

3. NewsRoom

Boston Partners Has $1.53 Million Stake in Ferroglobe PLC $GSM

Dec -01

Source: defenseworld.net

Ballast Asset Management LP Has $3.11 Million Stock Position in Ferroglobe PLC $GSM

Dec -01

Source: defenseworld.net

Investors Purchase Large Volume of Ferroglobe Put Options (NASDAQ:GSM)

Nov -29

Source: defenseworld.net

Ferroglobe PLC (GSM) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Globe Specialty Metals (GSM) Reports Q3 Loss, Misses Revenue Estimates

Nov -06

Source: zacks.com

Ferroglobe Reports Third Quarter 2025 Financial Results

Nov -05

Source: globenewswire.com

Ferroglobe PLC Schedules Third Quarter 2025 Earnings Call for November 6, 2025

Oct -21

Source: globenewswire.com

Ferroglobe (GSM) Moves 11.0% Higher: Will This Strength Last?

Oct -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

North America Silicon Metal

Expected Growth: 5%

Ferroglobe PLC's North America Silicon Metal segment growth is driven by increasing demand from the solar and automotive industries, coupled with the region's growing focus on renewable energy and electrification. Additionally, the company's strategic expansion into the US market and investments in production capacity have contributed to the 5% growth rate.

Europe Silicon Metal

Expected Growth: 5%

Ferroglobe PLC's Europe Silicon Metal segment growth is driven by increasing demand from the solar and aluminum industries, coupled with the company's cost leadership and operational efficiency. Additionally, the segment benefits from favorable market trends, such as the shift towards renewable energy and the growth of the electric vehicle market.

North America Silicon Alloys

Expected Growth: 5%

Ferroglobe PLC's North America Silicon Alloys segment growth is driven by increasing demand from the solar and automotive industries, coupled with the region's growing focus on renewable energy and electric vehicle adoption. Additionally, the segment benefits from Ferroglobe's cost leadership, operational efficiencies, and strategic partnerships with key customers.

Europe Manganese

Expected Growth: 5%

Europe Manganese from Ferroglobe PLC's 5% growth is driven by increasing demand for electric vehicle batteries, growth in steel production, and rising adoption of renewable energy technologies. Additionally, the European Union's goal to become carbon neutral by 2050 and the increasing focus on sustainable energy storage solutions also contribute to the segment's growth.

Europe Silicon Alloys

Expected Growth: 5%

Ferroglobe PLC's Europe Silicon Alloys segment growth is driven by increasing demand from the solar and aluminum industries, supported by government incentives for renewable energy. Additionally, the segment benefits from its cost-competitive production process and strategic location, enabling it to capitalize on growing European demand.

Adjustments/Eliminations

Expected Growth: 5%

Ferroglobe PLC's 5% growth driven by increasing demand for silicon metal and ferroalloys from the solar and automotive industries, coupled with strategic cost savings initiatives and operational efficiencies. Additionally, the company's diversification into new markets and products, such as silicon-based alloys, contributes to its growth momentum.

South Africa Silicon Alloys

Expected Growth: 5%

Ferroglobe PLC's South Africa Silicon Alloys segment growth is driven by increasing demand from the solar and aluminum industries, coupled with the country's favorable energy costs and government support for the sector. Additionally, the company's cost-cutting initiatives and operational efficiencies contribute to its growth.

Other Segments

Expected Growth: 5%

Ferroglobe's Other Segments, with 5% growth, are driven by increasing demand for silicon metal and alloys in the automotive and renewable energy industries, coupled with strategic acquisitions and expansion into high-growth markets, as well as cost savings initiatives and operational efficiencies.

South Africa Silicon Metal

Expected Growth: 5%

Ferroglobe PLC's South Africa Silicon Metal segment growth is driven by increasing demand from the solar and aluminum industries, coupled with the country's favorable energy costs and government support for the metal industry. Additionally, the company's cost-cutting initiatives and operational efficiencies contribute to its growth.

7. Detailed Products

Silicon Metals

Ferroglobe PLC produces high-purity silicon metals used in the production of aluminum, semiconductors, and solar panels.

Silicon-Based Alloys

Ferroglobe PLC offers a range of silicon-based alloys used in the production of steel, aluminum, and other metals.

Manganese-Based Alloys

Ferroglobe PLC produces manganese-based alloys used in the production of steel, stainless steel, and other specialty alloys.

Other Specialty Metals

Ferroglobe PLC offers a range of other specialty metals, including ferrovanadium, ferromolybdenum, and ferrotungsten.

8. Ferroglobe PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Ferroglobe PLC is moderate due to the availability of alternative products and services in the silicon metal and manganese-based alloy markets.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major customers in the automotive and steel industries, which gives them significant negotiating power over prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers of raw materials and the company's ability to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the silicon metal and manganese-based alloy markets, with multiple players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	27.72%
Debt Cost	13.88%
Equity Weight	72.28%
Equity Cost	13.88%
WACC	13.88%
Leverage	38.35%

11. Quality Control: Ferroglobe PLC passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Alphamin Resources

A-Score: 5.8/10

Value: 6.0

Growth: 9.0

Quality: 8.0

Yield: 9.4

Momentum: 2.0

Volatility: 0.7

1-Year Total Return ->

Capital

A-Score: 5.5/10

Value: 7.6

Growth: 6.6

Quality: 4.9

Yield: 4.4

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

Ecora Resources

A-Score: 4.4/10

Value: 5.8

Growth: 2.0

Quality: 3.6

Yield: 4.4

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

Griffin Mining

A-Score: 4.1/10

Value: 3.7

Growth: 5.1

Quality: 6.9

Yield: 0.0

Momentum: 7.0

Volatility: 1.7

1-Year Total Return ->

AMG

A-Score: 3.7/10

Value: 5.1

Growth: 2.1

Quality: 1.9

Yield: 1.9

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

Ferroglobe

A-Score: 2.8/10

Value: 5.0

Growth: 4.8

Quality: 1.6

Yield: 0.6

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.97%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.88%

Ferroglobe PLC - GB00BYW6GV68

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GSM

1.c. Company Highlights

Lower Yield

More Volatile

Average Growth

Earnings Beats

Revenues Beats

Earnings Miss

Fairly Valued

Cheaper

Revenues Miss

Weak Momentum

Stable Momentum

Lower Quality

2. Ferroglobe's Q3 2025 Earnings: Navigating Trade Challenges and Operational Efficiencies

Operational Efficiencies and Strategic Initiatives

Trade Actions and Market Outlook

Valuation and Capital Allocation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

North America Silicon Metal

Expected Growth: 5%

Europe Silicon Metal

Expected Growth: 5%

North America Silicon Alloys

Expected Growth: 5%

Europe Manganese

Expected Growth: 5%

Europe Silicon Alloys

Expected Growth: 5%

Adjustments/Eliminations

Expected Growth: 5%

South Africa Silicon Alloys

Expected Growth: 5%

Other Segments

Expected Growth: 5%

South Africa Silicon Metal

Expected Growth: 5%

7. Detailed Products

Silicon Metals

Silicon-Based Alloys

Manganese-Based Alloys

Other Specialty Metals

8. Ferroglobe PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ferroglobe PLC passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.e Scoring ^Insights

12.f DCF ^BETA