GICS Sector : Basic Materials
Aperam S.A., together with its subsidiaries, engages in the production and sale of stainless and specialty steel products worldwide.It operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties.The company offers range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys.
Aperam's financial performance in Q3 was marked by an actual EPS of -0.28, falling short of estimates at 0.01. Revenue growth was likely impacted by the price pressure from imports in Brazil, although the company is awaiting the results of a proposed antidumping revision on stainless steel imports from China and Taiwan. The company's financials were under pressure, with the actual EPS coming in negative.
Publication Date: Nov -29
The company expects volumes to increase in Europe in Q4 due to seasonal effects, while Brazil will see a decrease in volumes, also in line with seasonality. Aperam's aerospace end market exposure is mainly through universal and recycling activities, and the market is experiencing destocking, but the order book of producers is solid. The alloys business is currently 10% weaker, but the company still targets EUR 100 million in EBITDA.
Financing costs are expected to be around EUR 15 million per quarter, with the rest of the costs related to derivatives and timing effects. The annualized financing line is expected to be around EUR 60 million. The impact of a change that came in 5 years ago will likely be a high single digit or low double digit hit, approximately $10-11 million, starting next year for long-term ones. Analysts estimate next year's revenue growth at 8.7%, indicating a potential recovery.
Aperam's current valuation metrics show a 'P/E Ratio' of 12.49, a 'P/B Ratio' of 0.75, and an 'EV/EBITDA' of 5.58. The 'Dividend Yield (%)' is 5.58%, and the 'Free Cash Flow Yield (%)' is 6.34%. These metrics indicate that the market is pricing in a moderate level of growth, and the company's dividend yield is attractive.
Outgoing CEO Timoteo Di Maulo expressed confidence in the company's open dialogue with the capital market and the resolution of current headwinds. He thanked participants and wished them a great holiday season, leaving the company in a stable position as he transitions to his new role.
Basic Materials Roundup: Market Talk
Nov -26
Earnings Report: Aperam S.A. Missed Revenue Estimates By 10%
Nov -12
Aperam (AMS:APAM) Has Announced A Dividend Of €0.425
Oct -18
European steelmakers' shares rise on EU plan to cut steel quotas
Oct -08
Basic Materials Roundup: Market Talk
Oct -08
Basic Materials Roundup: Market Talk
Oct -03
Basic Materials Roundup: Market Talk
Oct -03
[Latest] Global Stainless Steel Scrap Market Size/Share Worth USD 70.84 Billion by 2034 at a 7.01% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT Analysis)
Aug -13
Aperam S.A.'s Stainless & Electrical Steel segment growth of 3.5% is driven by increasing demand from the automotive and construction industries, coupled with rising adoption of electric vehicles and renewable energy sources. Additionally, the company's focus on cost optimization, product innovation, and strategic partnerships also contribute to its growth momentum.
Aperam S.A.'s 3.8% growth in Services & Solutions is driven by increasing demand for stainless steel and specialty materials in the aerospace, automotive, and industrial markets. Additionally, the company's focus on innovation, digitalization, and sustainability initiatives has led to improved operational efficiency and cost savings, contributing to the segment's growth.
Aperam S.A.'s Recycling & Renewables segment growth of 4.2% is driven by increasing demand for eco-friendly products, government incentives for sustainable practices, and the company's strategic expansion into emerging markets. Additionally, Aperam's focus on research and development of new recycling technologies and processes has improved operational efficiency, further contributing to the segment's growth.
Aperam S.A.'s Alloys & Specialties segment growth of 3.2% is driven by increasing demand from the aerospace and automotive industries, coupled with the company's focus on innovation and R&D, resulting in high-value specialty alloys. Additionally, strategic partnerships and capacity expansions have enabled the company to capitalize on growing market trends.
Aperam S.A. produces a wide range of stainless and electrical steels, including austenitic, ferritic, martensitic, and duplex grades, used in various industries such as construction, automotive, and consumer goods.
Aperam S.A. offers a variety of alloys and special steels, including nickel alloys, titanium alloys, and other specialty grades, used in demanding applications such as aerospace, energy, and industrial processes.
Aperam S.A. provides a range of services, including technical support, logistics, and supply chain management, to support its customers in the production and distribution of its steel products.
Aperam S.A. faces moderate threat from substitutes due to the availability of alternative materials and products in the market.
Aperam S.A. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.
Aperam S.A. relies on a few large suppliers for raw materials, giving them some bargaining power, but the company's size and scale of operations mitigate this risk.
The steel industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to join the market.
The steel industry is highly competitive, with many established players competing for market share, leading to intense rivalry among companies like Aperam S.A.
| Value | |
|---|---|
| Debt Weight | 21.34% |
| Debt Cost | 3.95% |
| Equity Weight | 78.66% |
| Equity Cost | 13.08% |
| WACC | 11.13% |
| Leverage | 27.14% |
Value: 7.9
Growth: 4.3
Quality: 4.9
Yield: 8.8
Momentum: 6.5
Volatility: 4.3
1-Year Total Return ->
Value: 7.0
Growth: 4.1
Quality: 3.9
Yield: 6.2
Momentum: 4.0
Volatility: 7.7
1-Year Total Return ->
Value: 7.3
Growth: 5.2
Quality: 2.6
Yield: 4.4
Momentum: 7.0
Volatility: 6.3
1-Year Total Return ->
Value: 6.9
Growth: 2.6
Quality: 2.9
Yield: 8.1
Momentum: 7.5
Volatility: 4.3
1-Year Total Return ->
Value: 5.2
Growth: 5.2
Quality: 5.1
Yield: 3.1
Momentum: 6.5
Volatility: 3.7
1-Year Total Return ->
Value: 5.8
Growth: 2.3
Quality: 3.5
Yield: 5.0
Momentum: 4.0
Volatility: 7.3
1-Year Total Return ->