XTRA:SZG

Stock Analysis Report

Executive Summary

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Salzgitter's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SZG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.6%

SZG

14.8%

DE Metals and Mining

7.1%

DE Market


1 Year Return

-57.0%

SZG

-51.9%

DE Metals and Mining

-17.5%

DE Market

Return vs Industry: SZG underperformed the German Metals and Mining industry which returned -51.9% over the past year.

Return vs Market: SZG underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

SZGIndustryMarket
7 Day26.6%14.8%7.1%
30 Day-26.7%-37.7%-20.0%
90 Day-44.1%-51.1%-26.1%
1 Year-56.0%-57.0%-51.5%-51.9%-15.0%-17.5%
3 Year-65.9%-67.3%-69.7%-70.7%-18.8%-25.8%
5 Year-57.8%-60.1%-69.6%-71.1%-17.9%-29.2%

Price Volatility Vs. Market

How volatile is Salzgitter's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Salzgitter undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SZG (€11.1) is trading below our estimate of fair value (€131.12)

Significantly Below Fair Value: SZG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SZG is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: SZG is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SZG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SZG is good value based on its PB Ratio (0.2x) compared to the DE Metals and Mining industry average (2x).


Next Steps

Future Growth

How is Salzgitter forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

92.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SZG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: SZG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SZG's is expected to become profitable in the next 3 years.

Revenue vs Market: SZG's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: SZG's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SZG's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has Salzgitter performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SZG is currently unprofitable.

Growing Profit Margin: SZG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SZG is unprofitable, but has reduced losses over the past 5 years at a rate of 15.4% per year.

Accelerating Growth: Unable to compare SZG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SZG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.9%).


Return on Equity

High ROE: SZG has a negative Return on Equity (-8.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Salzgitter's financial position?


Financial Position Analysis

Short Term Liabilities: SZG's short term assets (€4.5B) exceed its short term liabilities (€2.2B).

Long Term Liabilities: SZG's short term assets (€4.5B) exceed its long term liabilities (€3.5B).


Debt to Equity History and Analysis

Debt Level: SZG's debt to equity ratio (31.2%) is considered satisfactory.

Reducing Debt: SZG's debt to equity ratio has increased from 24.1% to 31.2% over the past 5 years.


Balance Sheet

Inventory Level: SZG has a high level of physical assets or inventory.

Debt Coverage by Assets: SZG's debt is covered by short term assets (assets are 4.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if SZG has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SZG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Salzgitter's current dividend yield, its reliability and sustainability?

4.96%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateMay 29 2020Dividend Pay DateJun 03 20205 days from Ex DividendBuy in the next 61 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SZG's dividend (4.96%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: SZG's dividend (4.96%) is low compared to the top 25% of dividend payers in the German market (4.98%).


Stability and Growth of Payments

Stable Dividend: SZG's dividend payments have been volatile in the past 10 years.

Growing Dividend: SZG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: SZG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SZG's dividends in 3 years are forecast to be well covered by earnings (20% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Heinz Fuhrmann (63yo)

9.08s

Tenure

€2,826,000

Compensation

Prof. Dr. Ing. Heinz Jörg Fuhrmann has been the Chairman of the Group Management Board and Chief Executive Officer at Salzgitter AG since February 1, 2011. Prof. Dr. Ing. Fuhrmann has been with Salzgitter  ...


CEO Compensation Analysis

Compensation vs Market: Heinz's total compensation ($USD3.13M) is above average for companies of similar size in the German market ($USD1.40M).

Compensation vs Earnings: Heinz's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Heinz Fuhrmann
Chairman of the Group Management Board & CEO9.08yrs€2.83mno data
Burkhard Becker
CFO & Member of the Group Management Board4.08yrs€1.61mno data
Michael Kieckbusch
Chief Personnel Officer & Member of the Group Management Board7.08yrs€1.60mno data
Ulrich Grethe
Strip Steel Business Unit Manager & Member of the Group Management Boardno datano datano data
Volker Schult
Trading Business Unit Manager & Member of the Group Management Board3.42yrsno datano data
Kai Acker
Head of the Group Technology Business Unit & Member of Group Management Boardno datano datano data
Sebastian Bross
Head of the Group’s Plate/Section Steel Business Unit & Member of the Group Management Board0.42yrno datano data
Heike Niederau-Buck
Chief Information Officer of IT-Strategieno datano datano data
Markus Heidler
Head of Investor Relationsno datano datano data
Bernhard Kleinermann
Spokesman and Head of Corporate Communications8.5yrsno datano data

5.6yrs

Average Tenure

58.5yo

Average Age

Experienced Management: SZG's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roland Flach
Member of the Supervisory Board6.83yrs€74.00kno data
Werner Tegtmeier
Member of the Supervisory Board11.83yrs€62.00kno data
Heinz-Gerhard Wente
Chairman of the Supervisory Board3.92yrs€184.50kno data
Hasan Cakir
Member of the Supervisory Board13.67yrs€74.50kno data
Dieter Köster
Member of the Supervisory Board11.83yrs€62.00kno data
Hans-Jürgen Urban
Vice Chairman of the Supervisory Board8.58yrs€124.50kno data
Ulrike Brouzi
Member of the Supervisory Board6.83yrs€61.00kno data
Bernd Lauenroth
Member of the Supervisory Board8.58yrs€79.00kno data
Volker Mittelstädt
Member of the Supervisory Board7.5yrs€61.50kno data
Joachim Schindler
Member of the Supervisory Board2.33yrs€94.00kno data

8.0yrs

Average Tenure

62yo

Average Age

Experienced Board: SZG's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Salzgitter AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Salzgitter AG
  • Ticker: SZG
  • Exchange: XTRA
  • Founded: 1858
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €600.099m
  • Shares outstanding: 54.09m
  • Website: https://www.salzgitter-ag.com

Number of Employees


Location

  • Salzgitter AG
  • EisenhUettenstrasse 99
  • Salzgitter
  • Lower Saxony
  • 38239
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SZGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SZGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SZGXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
0G77LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SZGDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
SZGSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
SZGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
SZGETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
SZGP.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008
SZGABST (Boerse-Stuttgart)UNSPONSORED ADRDEEURNov 2008

Biography

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through five segments: Strip Steel, Plate/Section Steel, Mannesmann, Trading, and Technology. The Strip Steel segment manufactures branded and special steels, such as hot-rolled strip steel and steel sheets, sections, tailored blanks, and components for the construction industry. The Plate/Section Steel segment produces various high-grade heavy plates for engineering, shipbuilding, and mechanical engineering, as well as trades in scrap. The Mannesmann segment is involved in the manufacture of line pipes, HFI-welded tubes, precision and stainless steel tubes, and spiral-welded and longitudinal-welded large-diameter pipes; and seamless and welded tubes for the energy, automotive, and mechanical engineering sectors. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment offers machinery and plants for the filling and packaging of beverages, as well as special machinery for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. Salzgitter AG was founded in 1858 and is headquartered in Salzgitter, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:43
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.