ENXTAM:APAM

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 61.4% below its fair value

Earnings are forecast to grow 18.55% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (3.9%) are lower than last year (7.3%)



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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

6.3%

APAM

1.9%

NL Metals and Mining

1.8%

NL Market


1 Year Return

24.2%

APAM

4.8%

NL Metals and Mining

16.0%

NL Market

Return vs Industry: APAM exceeded the Dutch Metals and Mining industry which returned 4.8% over the past year.

Return vs Market: APAM exceeded the Dutch Market which returned 16% over the past year.


Shareholder returns

APAMIndustryMarket
7 Day6.3%1.9%1.8%
30 Day1.8%-2.6%-0.8%
90 Day13.2%-0.2%0.1%
1 Year32.1%24.2%12.1%4.8%21.2%16.0%
3 Year-27.8%-36.3%18.5%2.1%40.3%24.3%
5 Year50.7%29.6%58.1%25.7%76.9%41.8%

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 (€28.67) is trading below our estimate of fair value (€74.33)

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 (14x) compared to the Metals and Mining industry average (9.8x).

PE vs Market: APAM is good value based on its PE Ratio (14x) compared to the Dutch market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: APAM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: APAM is good value based on its PB Ratio (1x) compared to the XE Metals and Mining industry average (1x).


Next Steps

Future Growth

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

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APAM's forecast earnings growth (18.5% per year) is above the savings rate (-0.2%).

Earnings vs Market: APAM's earnings (18.5% per year) are forecast to grow faster than the Dutch market (12% per year).

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

Revenue vs Market: APAM's revenue (6.2% per year) is forecast to grow faster than the Dutch market (5.5% per year).

High Growth Revenue: APAM's revenue (6.2% 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 (10.2%).


Next Steps

Past Performance

How has Aperam performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APAM has high quality earnings.

Growing Profit Margin: APAM's current net profit margins (3.9%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: APAM's earnings have grown significantly by 20% 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 (-49.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.8%).


Return on Equity

High ROE: APAM's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aperam's financial position?


Financial Position Analysis

Short Term Liabilities: APAM's short term assets (€1.2B) exceed its short term liabilities (€449.0M).

Long Term Liabilities: APAM's short term assets (€1.2B) exceed its long term liabilities (€695.0M).


Debt to Equity History and Analysis

Debt Level: APAM's debt to equity ratio (20.8%) is considered satisfactory.

Reducing Debt: APAM's debt to equity ratio has reduced from 34.3% to 20.8% over the past 5 years.

Debt Coverage: APAM's debt is well covered by operating cash flow (65.6%).

Interest Coverage: APAM's interest payments on its debt are well covered by EBIT (33.3x 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 2.4x debt).


Next Steps

Dividend

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

6.10%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.2%markettop25%5.6%industryaverage6.7%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: APAM's dividend (6.1%) is higher than the bottom 25% of dividend payers in the Dutch market (2.18%).

High Dividend: APAM's dividend (6.1%) is in the top 25% of dividend payers in the Dutch market (5.59%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.5%), APAM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APAM's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Tim Di Maulo (60yo)

4.9yrs

Tenure

0

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 ...


Management Age and Tenure

5.0yrs

Average Tenure

49yo

Average Age

Experienced Management: APAM's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: APAM's board of directors are considered experienced (7.8 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

  • Vanisha Mittal Bhatia (38yo)

    Chief Strategy Officer

    • Tenure: 8.7yrs
  • Thorsten Zimmermann

    Head of Investor Relations

    • Tenure: 0yrs
  • Sandeep Jalan (52yo)

    Chief Financial Officer

    • Tenure: 5.9yrs
  • Tim Di Maulo (60yo)

    Chief Executive Officer

    • Tenure: 4.9yrs
  • Laurent Beauloye

    • Tenure: 0yrs
  • Guillaume Bazetoux

    Head of Finance & Secretary to the Leadership Team

    • Tenure: 0yrs
  • Frederico Lima (47yo)

    Chief Operating Officer of Stainless & Electrical Steel South America

    • Tenure: 5yrs
  • Bernard Hallemans (51yo)

    Chief Operating Officer of Stainless & Electrical Steel - Europe

    • Tenure: 3.2yrs
  • Nicolas Changeur (47yo)

    Chief Marketing Officer of Stainless & Electrical Steel

    • Tenure: 5.1yrs
  • Bert Lyssens (49yo)

    Head of Sustainability

    • Tenure: 4.7yrs

Board Members

  • Romain Bausch (66yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Lakshmi Mittal (69yo)

    Chairman

    • Tenure: 0yrs
  • Aditya Mittal (42yo)

    Non-Independent Director

    • Tenure: 9yrs
  • Joe Greenwell (68yo)

    Independent Director

    • Tenure: 6.6yrs
  • Kathryn Matthews (59yo)

    Independent Director

    • Tenure: 9yrs
  • Philippe Darmayan (67yo)

    Non-Independent Director

    • Tenure: 4.6yrs
  • Bernadette Baudier

    Independent Director

    • Tenure: 0yrs

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: €2.288b
  • 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
APMS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2011
APAMENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 2011
APAMBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 2011
0OLFLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2011
APAMLBDL (Bourse de Luxembourg)YesOrdinary SharesLUEURJan 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;  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 21:26
End of Day Share Price2019/12/09 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.