Acerinox (BME:ACX) - Share price, News & Analysis

ACX fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	6/6
Financial Health	5/6
Dividends	4/6

ACX Stock Overview

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

Rewards

Trading at 26.8% below our estimate of its fair value

Earnings grew by 1065.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 12.9% per year for the next 3 years

Unstable dividend track record

Volatile share price over the past 3 months

Acerinox Competitors

ArcelorMittal

ENXTAM:MT

€23.6b

POSCO Holdings

KOSE:A005490

₩21.2t

Howmet Aerospace

NYSE:HWM

US$14.1b

Jindal Steel & Power

NSEI:JINDALSTEL

₹462.7b

Price History & Performance

Summary of all time highs, changes and price drops for Acerinox
Historical stock prices
Current Share Price	€10.44
52 Week High	€12.91
52 Week Low	€9.10
Beta	1.39
1 Month Change	4.60%
3 Month Change	-7.74%
1 Year Change	-12.02%
3 Year Change	17.80%
5 Year Change	-13.76%
Change since IPO	159.26%

Recent News & Updates

Apr 15

These 4 Measures Indicate That Acerinox (BME:ACX) Is Using Debt Reasonably Well

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Feb 09

A Look At The Fair Value Of Acerinox, S.A. (BME:ACX)

How far off is Acerinox, S.A. ( BME:ACX ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

	ACX	ES Metals and Mining	ES Market
7D	4.5%	-3.7%	-0.2%
1Y	-12.0%	-11.0%	-10.0%

Return vs Industry: ACX underperformed the Spanish Metals and Mining industry which returned -11% over the past year.

Return vs Market: ACX underperformed the Spanish Market which returned -10% over the past year.

Price Volatility

Is ACX's price volatile compared to industry and market?
ACX volatility
ACX Average Weekly Movement	6.3%
Metals and Mining Industry Average Movement	8.6%
Market Average Movement	4.6%
10% most volatile stocks in ES Market	8.2%
10% least volatile stocks in ES Market	0.9%

Stable Share Price: ACX is more volatile than 75% of Spanish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ACX's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Spanish stocks.

About the Company

Founded	Employees	CEO	Website
1970	8,150	Bernardo Velazquez Herreros	https://www.acerinox.com

Acerinox, S.A., through its subsidiaries, manufactures, transforms, and markets stainless steel products in Spain, the Americas, Africa, Asia, Oceania, and Europe. The company offers flat products, including coil cold rollings, hot rolled and black coils, teardrop steel or coils, and hot and cold rolled sheets, as well as roughing materials, discs, billets, and plates. It also provides long products, which include steel and color coated wires, corrugated wires, hexagonal wire rods, bars, hot and cold rebars, decorticated bars, black bars, steel profiles, and corrugated hot rolls.

Acerinox Fundamentals Summary

How do Acerinox's earnings and revenue compare to its market cap?
ACX fundamental statistics
Market Cap	€2.81b
Earnings (TTM)	€571.88m
Revenue (TTM)	€6.71b

4.9x

P/E Ratio

0.4x

P/S Ratio

Is ACX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACX income statement (TTM)
Revenue	€6.71b
Cost of Revenue	€4.35b
Gross Profit	€2.36b
Other Expenses	€1.79b
Earnings	€571.88m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)	2.12
Gross Margin	35.16%
Net Profit Margin	8.53%
Debt/Equity Ratio	83.8%

How did ACX perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

26.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ACX (€10.44) is trading below our estimate of fair value (€14.25)

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

Price To Earnings Ratio

PE vs Industry: ACX is good value based on its PE Ratio (4.9x) compared to the European Metals and Mining industry average (5.7x).

PE vs Market: ACX is good value based on its PE Ratio (4.9x) compared to the Spanish market (17.8x).

Price to Earnings Growth Ratio

PEG Ratio: ACX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: ACX's PB Ratio (1.3x) is in line with the XE Metals and Mining industry average.

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-12.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACX's earnings are forecast to decline over the next 3 years (-12.9% per year).

Earnings vs Market: ACX's earnings are forecast to decline over the next 3 years (-12.9% per year).

High Growth Earnings: ACX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ACX's revenue is expected to decline over the next 3 years (-2.2% per year).

High Growth Revenue: ACX's revenue is forecast to decline over the next 3 years (-2.2% 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 (13%).

Past Performance

How has Acerinox performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACX has high quality earnings.

Growing Profit Margin: ACX's current net profit margins (8.5%) are higher than last year (1%).

Past Earnings Growth Analysis

Earnings Trend: ACX's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: ACX's earnings growth over the past year (1065.9%) exceeds its 5-year average (1% per year).

Earnings vs Industry: ACX earnings growth over the past year (1065.9%) exceeded the Metals and Mining industry 112.7%.

Return on Equity

High ROE: ACX's Return on Equity (26.4%) is considered high.

Financial Health

How is Acerinox's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ACX's short term assets (€3.9B) exceed its short term liabilities (€2.0B).

Long Term Liabilities: ACX's short term assets (€3.9B) exceed its long term liabilities (€1.8B).

Debt to Equity History and Analysis

Debt Level: ACX's net debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: ACX's debt to equity ratio has increased from 56.3% to 83.8% over the past 5 years.

Debt Coverage: ACX's debt is well covered by operating cash flow (20.9%).

Interest Coverage: ACX's interest payments on its debt are well covered by EBIT (19.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ACX's dividend (4.79%) is higher than the bottom 25% of dividend payers in the Spanish market (1.83%).

High Dividend: ACX's dividend (4.79%) is low compared to the top 25% of dividend payers in the Spanish market (5.45%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.6%), ACX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (47.2%), ACX's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

5.3yrs

Average board tenure

CEO

Bernardo Velazquez Herreros (57 yo)

11.83yrs

Tenure

€1,121,000

Compensation

Mr. Bernardo Velazquez 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 July 2010. Mr. Velázquez Her...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Bernardo's total compensation is reasonable compared to companies of similar size in the Spanish market.

Compensation vs Earnings: Insufficient data to compare Bernardo's compensation with company performance.

Board Members

Experienced Board: ACX's board of directors are considered experienced (5.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31