BME:ACX

Stock Analysis Report

Executive Summary

Acerinox, S.A., through its subsidiaries, manufactures, transforms, and markets stainless steel products in Spain, the Americas, Africa, Asia, Oceania, and rest of Europe.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

ACX

-2.5%

ES Metals and Mining

-1.1%

ES Market


1 Year Return

5.0%

ACX

-0.8%

ES Metals and Mining

3.0%

ES Market

Return vs Industry: ACX exceeded the Spanish Metals and Mining industry which returned -0.8% over the past year.

Return vs Market: ACX exceeded the Spanish Market which returned 3% over the past year.


Shareholder returns

ACXIndustryMarket
7 Day-0.3%-2.5%-1.1%
30 Day19.1%5.2%-0.4%
90 Day31.2%7.9%4.5%
1 Year10.6%5.0%6.3%-0.8%6.8%3.0%
3 Year-8.5%-18.5%28.0%10.3%19.1%8.0%
5 Year-6.8%-22.2%40.8%11.5%7.6%-11.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACX (€9.66) is trading below our estimate of fair value (€11.28)

Significantly Below Fair Value: ACX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACX is poor value based on its PE Ratio (20.4x) compared to the Metals and Mining industry average (10.1x).

PE vs Market: ACX is poor value based on its PE Ratio (20.4x) compared to the Spanish market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ACX is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ACX is overvalued based on its PB Ratio (1.2x) compared to the XE Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Acerinox forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACX's forecast earnings growth (17.9% per year) is above the savings rate (1.5%).

Earnings vs Market: ACX's earnings (17.9% per year) are forecast to grow faster than the Spanish market (9.7% per year).

High Growth Earnings: ACX's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACX's revenue (3.7% per year) is forecast to grow faster than the Spanish market (3.5% per year).

High Growth Revenue: ACX's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACX's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Acerinox performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACX has high quality earnings.

Growing Profit Margin: ACX's current net profit margins (2.7%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: ACX's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: ACX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACX had negative earnings growth (-56.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5.5%).


Return on Equity

High ROE: ACX's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acerinox's financial position?


Financial Position Analysis

Short Term Liabilities: ACX's short term assets (€2.6B) exceeds its short term liabilities (€1.4B)

Long Term Liabilities: ACX's short term assets (€2.6B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: ACX's debt to equity ratio (69.6%) is considered high.

Reducing Debt: ACX's debt to equity ratio has reduced from 72.2% to 69.6% over the past 5 years.

Debt Coverage: ACX's debt is well covered by operating cash flow (25.7%).

Interest Coverage: ACX's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: ACX's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

5.18%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.3%markettop25%5.6%industryaverage6.7%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: ACX's dividend (5.18%) is higher than the bottom 25% of dividend payers in the Spanish market (2.3%).

High Dividend: ACX's dividend (5.18%) is low compared to the top 25% of dividend payers in the Spanish market (5.64%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.5%), ACX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACX's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).


Next Steps

Management

What is the CEO of Acerinox's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Bernardo Velázquez Herreros (55yo)

9.3yrs

Tenure

€1,121,000

Compensation

Mr. Bernardo Velázquez Herreros has been the Chief Executive Officer of Acerinox, S.A. since July 2010. Mr. Herreros served as Managing Director of Acerinox, S.A from 2007 to 2010. Mr. Velázquez Herreros  ...


CEO Compensation Analysis

Compensation vs Market: Bernardo's total compensation ($USD0.00) is below average for companies of similar size in the Spanish market ($USD71.25K).

Compensation vs Earnings: Bernardo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: ACX's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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.


Management Team

  • Miguel Ferrandis Torres

    Chief Financial Director

    • Tenure: 0yrs
  • Bernardo Velázquez Herreros (55yo)

    CEO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: €1.12m
  • Lucien Matthews (64yo)

    Chief Executive of Columbus Stainless

    • Tenure: 4.9yrs
  • Luis Gimeno Valledor

    General Counsel & General Secretary

    • Tenure: 0yrs
  • Antonio Fernández-Pacheco Martínez

    Managing Director

    • Tenure: 0yrs
  • Carlos Lora-Tamayo

    Head of Investor & Media Relations

    • Tenure: 0yrs
  • Cristóbal Fuentes Tovar

    Chief Executive of North American Stainless

    • Tenure: 0yrs
  • Jorge Rodríguez Rovira

    Chief Executive of Roldán

    • Tenure: 0yrs
  • Ángel Bruñén Cea

    Chief Executive of Inoxfil

    • Tenure: 0yrs
  • Luis Gutiérrez Mas

    Chief Executive of Inoxcenter

    • Tenure: 0yrs

Board Members

  • Rafael Miranda Robredo (70yo)

    Independent Chairman

    • Tenure: 5.6yrs
    • Compensation: €158.00k
  • Santos Martínez-Conde Gutiérrez-Barquín (64yo)

    External Proprietary Director

    • Tenure: 17.5yrs
    • Compensation: €81.00k
  • Bernardo Velázquez Herreros (55yo)

    CEO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: €1.12m
  • Braulio Medel Cámara

    External Independent Director

    • Tenure: 11.5yrs
    • Compensation: €77.00k
  • Ryo Hattori

    External Proprietary Director

    • Tenure: 10.5yrs
    • Compensation: €88.00k
  • Tomás Hevia Armengol

    External Proprietary Director

    • Tenure: 2.9yrs
  • Laura González-Molero

    External Independent Director

    • Tenure: 2.8yrs
  • Rosa María García García Piñeiro

    External Independent Director

    • Tenure: 2.8yrs
  • Marta Martínez Alonso

    External Independent Director

    • Tenure: 2.8yrs
  • Pablo Gómez Garzón

    Propriety Director

    • Tenure: 0.6yrs

Company Information

Acerinox, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acerinox, S.A.
  • Ticker: ACX
  • Exchange: BME
  • Founded: 1970
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €2.609b
  • Shares outstanding: 270.18m
  • Website: https://www.acerinox.com

Number of Employees


Location

  • Acerinox, S.A.
  • Calle Santiago de Compostela, 100
  • Madrid
  • Madrid
  • 28035
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACE1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1987
ACXBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURDec 1987
0OIQLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 1987
ACXEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 1987
ACXWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 1987
ACX NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 1987
ANIO.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Acerinox, S.A., through its subsidiaries, manufactures, transforms, and markets stainless steel products in Spain, the Americas, Africa, Asia, Oceania, and rest of Europe. The company’s Flat Products segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 20:33
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.