ENXTAM:APAM

Stock Analysis Report

Executive Summary

Aperam S.A., through its subsidiaries, produces and sells stainless and specialty steel products worldwide.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.1%

APAM

0.9%

NL Metals and Mining

1.5%

NL Market


1 Year Return

-31.2%

APAM

-29.7%

NL Metals and Mining

-24.0%

NL Market

Return vs Industry: APAM matched the Dutch Metals and Mining industry which returned -30.4% over the past year.

Return vs Market: APAM underperformed the Dutch Market which returned -23.2% over the past year.


Shareholder returns

APAMIndustryMarket
7 Day8.1%0.9%1.5%
30 Day-21.6%-13.5%-15.8%
90 Day-32.7%-25.8%-24.7%
1 Year-26.8%-31.2%-25.0%-29.7%-20.8%-24.0%
3 Year-52.6%-58.4%-12.0%-23.9%-4.3%-14.8%
5 Year-40.1%-49.2%14.1%-9.7%7.3%-13.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aperam 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: APAM (€19.39) is trading below our estimate of fair value (€58.3)

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


Price To Earnings Ratio

PE vs Industry: APAM is poor value based on its PE Ratio (10.6x) compared to the Metals and Mining industry average (6.9x).

PE vs Market: APAM is good value based on its PE Ratio (10.6x) compared to the Dutch market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: APAM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: APAM is good value based on its PB Ratio (0.6x) compared to the XE Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is Aperam forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APAM's forecast earnings growth (14.7% per year) is above the savings rate (-0.2%).

Earnings vs Market: APAM's earnings (14.7% per year) are forecast to grow faster than the Dutch market (13.7% per year).

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

Revenue vs Market: APAM's revenue (5.1% per year) is forecast to grow slower than the Dutch market (5.2% per year).

High Growth Revenue: APAM's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APAM's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Aperam performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APAM has high quality earnings.

Growing Profit Margin: APAM's current net profit margins (3.5%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: APAM's earnings have grown by 13.3% per year over the past 5 years.

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

Earnings vs Industry: APAM had negative earnings growth (-48.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-9.8%).


Return on Equity

High ROE: APAM's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Aperam's financial position?


Financial Position Analysis

Short Term Liabilities: APAM's short term assets (€1.9B) exceed its short term liabilities (€1.1B).

Long Term Liabilities: APAM's short term assets (€1.9B) exceed its long term liabilities (€693.0M).


Debt to Equity History and Analysis

Debt Level: APAM's debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: APAM's debt to equity ratio has reduced from 27.2% to 17% over the past 5 years.

Debt Coverage: APAM's debt is well covered by operating cash flow (97.6%).

Interest Coverage: APAM's interest payments on its debt are well covered by EBIT (23.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: APAM's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

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

9.12%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: APAM's dividend (9.03%) is higher than the bottom 25% of dividend payers in the Dutch market (3.04%).

High Dividend: APAM's dividend (9.03%) is in the top 25% of dividend payers in the Dutch market (7.79%)


Stability and Growth of Payments

Stable Dividend: APAM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: APAM's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96%), APAM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APAM's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Tim Di Maulo (60yo)

5.25s

Tenure

Mr. Timoteo Di Maulo, also known as Tim, has been the Chief Executive Officer at Aperam since January 1, 2015 and serves as its Member of The Leadership Team. Mr. Di Maulo has over twenty-five years of exp ...


Leadership Team

NamePositionTenureCompensationOwnership
Timoteo Di Maulo
Chief Executive Officer5.25yrsno datano data
Sandeep Jalan
Chief Financial Officer6.25yrsno datano data
Thorsten Zimmermann
Head of Investor Relationsno datano datano data
Bert Lyssens
Head of Sustainability5yrsno datano data
Vanisha Mittal Bhatia
Chief Strategy Officer9yrsno datano data
Guillaume Bazetoux
Head of Finance & Secretary to the Leadership Teamno datano datano data
Frederic Mattei
CEO of Alloys & Specialties and Global Head of Health3.5yrsno datano data
Frederico Lima
Chief Operating Officer of Stainless & Electrical Steel South America5.33yrsno datano data
Bernard Hallemans
Chief Operating Officer of Stainless & Electrical Steel - Europe3.5yrsno datano data
Nicolas Changeur
Chief Marketing Officer of Stainless & Electrical Steel5.42yrsno datano data

5.3yrs

Average Tenure

48yo

Average Age

Experienced Management: APAM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Romain Bausch
Lead Independent Directorno data€97.50kno data
Lakshmi Mittal
Chairmanno data€70.00k0.014% 212.8k
Aditya Mittal
Non-Independent Director9.33yrs€70.00kno data
Joseph Greenwell
Independent Director6.92yrs€82.50kno data
Kathryn Matthews
Independent Director9.33yrs€75.00kno data
Philippe Darmayan
Non-Independent Director4.92yrs€70.00kno data
Bernadette Baudier
Independent Director0.92yr€53.89kno data

6.9yrs

Average Tenure

66yo

Average Age

Experienced Board: APAM's board of directors are considered experienced (6.9 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

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


Key Information

  • Name: Aperam S.A.
  • Ticker: APAM
  • Exchange: ENXTAM
  • Founded: 2010
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €1.532b
  • Shares outstanding: 79.82m
  • Website: https://www.aperam.com

Number of Employees


Location

  • Aperam S.A.
  • 12C, rue Guillaume Kroll
  • Luxembourg City
  • 1882
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APEM.YOTCPK (Pink Sheets LLC)NY REGISTRY SHSUSUSDJan 2011
APAMLBDL (Bourse de Luxembourg)YesOrdinary SharesLUEURJan 2011
APAMENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 2011
APAMBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 2011
0OLFLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2011
APMS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2011
APAMABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2011
7AADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2011
APAMWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 2011
APAM NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 2011
APAMEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2011

Biography

Aperam S.A., through its subsidiaries, produces and sells stainless and specialty steel products worldwide. The company operates through three segments: Stainless & Electrical Steel; Services & Solutions; and Alloys & Specialties. It offers stainless and electrical steel products, including grain oriented, non-grain oriented, and non-grain oriented semi-processed steel products. The company is also involved in the distribution operations; and the provision of value added and customized steel solutions. In addition, it designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates. The company serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. It distributes its products through a network of service centers, transformation facilities, and sales offices. Aperam S.A. was incorporated in 2010 and is headquartered in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 00:13
End of Day Share Price2020/04/03 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.