OM:SSAB A

Stock Analysis Report

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Market Cap

kr42.0b

Last Updated

2021/06/13 20:59 UTC

Data Sources

Company Financials +

Executive Summary

SSAB AB (publ) produces and sells steel products in the United States, Sweden, Finland, Germany, Denmark, and internationally. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SSAB A is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SSAB A's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

SSAB A

1.2%

SE Metals and Mining

0.4%

SE Market


1 Year Return

79.3%

SSAB A

66.9%

SE Metals and Mining

48.9%

SE Market

Return vs Industry: SSAB A exceeded the Swedish Metals and Mining industry which returned 66.9% over the past year.

Return vs Market: SSAB A exceeded the Swedish Market which returned 48.9% over the past year.


Shareholder returns

SSAB AIndustryMarket
7 Day0.7%1.2%0.4%
30 Day5.1%1.9%3.4%
90 Day8.4%5.6%7.4%
1 Year79.3%79.3%71.7%66.9%54.3%48.9%
3 Year-0.3%-4.2%15.2%6.0%72.8%55.8%
5 Year138.7%124.6%142.3%108.4%122.5%78.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSAB A (SEK44.51) is trading below our estimate of fair value (SEK62.28)

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


Price To Earnings Ratio

PE vs Industry: SSAB A is poor value based on its PE Ratio (55.8x) compared to the Swedish Metals and Mining industry average (23.3x).

PE vs Market: SSAB A is poor value based on its PE Ratio (55.8x) compared to the Swedish market (24x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SSAB A is good value based on its PB Ratio (0.8x) compared to the SE Metals and Mining industry average (2.1x).


Future Growth

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

-25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSAB A's earnings are forecast to decline over the next 3 years (-25.7% per year).

Earnings vs Market: SSAB A's earnings are forecast to decline over the next 3 years (-25.7% per year).

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

Revenue vs Market: SSAB A's revenue is expected to decline over the next 3 years (-4.3% per year).

High Growth Revenue: SSAB A's revenue is forecast to decline over the next 3 years (-4.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSAB A's Return on Equity is forecast to be low in 3 years time (7.1%).


Past Performance

How has SSAB performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSAB A has high quality earnings.

Growing Profit Margin: SSAB A became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SSAB A has become profitable over the past 5 years, growing earnings by -4.7% per year.

Accelerating Growth: SSAB A has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SSAB A has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-14.6%).


Return on Equity

High ROE: SSAB A's Return on Equity (1.4%) is considered low.


Financial Health

How is SSAB's financial position?


Financial Position Analysis

Short Term Liabilities: SSAB A's short term assets (SEK36.1B) exceed its short term liabilities (SEK22.0B).

Long Term Liabilities: SSAB A's short term assets (SEK36.1B) exceed its long term liabilities (SEK12.4B).


Debt to Equity History and Analysis

Debt Level: SSAB A's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: SSAB A's debt to equity ratio has reduced from 61.5% to 21.6% over the past 5 years.

Debt Coverage: SSAB A's debt is well covered by operating cash flow (48.4%).

Interest Coverage: SSAB A's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

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

4.20%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SSAB A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SSAB A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SSAB A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SSAB A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SSAB A is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SSAB A's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Martin Lindqvist (50 yo)

10.42yrs

Tenure

Mr. Martin Lindqvist, B.Sc. (Economics) Eng, M.B.A, has been the Chief Executive Officer and President of SSAB AB since January 01, 2011. Mr. Lindqvist is employed at SSAB since 1998. He has been the Chief...


Leadership Team

Experienced Management: SSAB A's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: SSAB A's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SSAB A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

SSAB AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SSAB AB (publ)
  • Ticker: SSAB A
  • Exchange: OM
  • Founded: 1878
  • Industry: Steel
  • Sector: Materials
  • Market Cap: kr42.014b
  • Shares outstanding: 1.03b
  • Website: https://www.ssab.com

Number of Employees


Location

  • SSAB AB (publ)
  • Klarabergsviadukten 70, D6
  • PO Box 70
  • Stockholm
  • Stockholm County
  • 101 21
  • Sweden

Listings


Biography

SSAB AB (publ) produces and sells steel products in the United States, Sweden, Finland, Germany, Denmark, and internationally. It operates through five segments: SSAB Special Steels, SSAB Europe, SSAB Amer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 20:59
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.