SSAB (OM:SSAB A) - Share price, News & Analysis

Q: What is the Fair Price of SSAB A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SSAB A (SEK45.48) is trading below our estimate of [[fair value]] (SEK50.53)

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

SSAB A Stock Overview

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

Rewards

Trading at 10% below our estimate of its fair value

Earnings grew by 2234.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 55.9% per year for the next 3 years

Unstable dividend track record

SSAB Competitors

Boliden

OM:BOL

kr90.4b

Holmen

OM:HOLM B

kr68.9b

HEXPOL

OM:HPOL B

kr29.9b

BillerudKorsnäs

OM:BILL

kr24.6b

Price History & Performance

Summary of all time highs, changes and price drops for SSAB
Historical stock prices
Current Share Price	kr45.48
52 Week High	kr75.56
52 Week Low	kr40.78
Beta	1.27
1 Month Change	-24.88%
3 Month Change	-38.07%
1 Year Change	11.47%
3 Year Change	40.50%
5 Year Change	18.28%
Change since IPO	565.56%

Recent News & Updates

May 09

Estimating The Intrinsic Value Of SSAB AB (publ) (STO:SSAB A)

In this article we are going to estimate the intrinsic value of SSAB AB (publ) ( STO:SSAB A ) by taking the forecast...

Apr 24

We Think SSAB (STO:SSAB A) Can Stay On Top Of Its Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

	SSAB A	SE Metals and Mining	SE Market
7D	-4.7%	-4.9%	-1.3%
1Y	11.5%	0.4%	-23.6%

Return vs Industry: SSAB A exceeded the Swedish Metals and Mining industry which returned 0.4% over the past year.

Return vs Market: SSAB A exceeded the Swedish Market which returned -23.6% over the past year.

Price Volatility

Is SSAB A's price volatile compared to industry and market?
SSAB A volatility
SSAB A Average Weekly Movement	6.7%
Metals and Mining Industry Average Movement	7.7%
Market Average Movement	7.4%
10% most volatile stocks in SE Market	12.2%
10% least volatile stocks in SE Market	4.7%

Stable Share Price: SSAB A is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SSAB A's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1878	14,361	Martin Lindqvist	https://www.ssab.com

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 Americas, Tibnor, and Ruukki Construction. The SSAB Special Steels segment offers quenched and tempered steels, and hot-rolled advanced high-strength steel products.

SSAB Fundamentals Summary

How do SSAB's earnings and revenue compare to its market cap?
SSAB A fundamental statistics
Market Cap	kr44.60b
Earnings (TTM)	kr19.17b
Revenue (TTM)	kr107.81b

2.4x

P/E Ratio

0.4x

P/S Ratio

Is SSAB A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SSAB A income statement (TTM)
Revenue	kr107.81b
Cost of Revenue	kr77.57b
Gross Profit	kr30.23b
Other Expenses	kr11.07b
Earnings	kr19.17b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 22, 2022

Earnings per share (EPS)	18.61
Gross Margin	28.05%
Net Profit Margin	17.78%
Debt/Equity Ratio	12.1%

How did SSAB A perform over the long term?

See historical performance and comparison

Dividends

11.5%

Current Dividend Yield

28%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SSAB A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SSAB A?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SSAB A. This is calculated by dividing SSAB A's market cap by their current preferred multiple.
What is SSAB A's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr44.60b

SSAB A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	1.4x
PEG Ratio	-0.04x

Price to Earnings Ratio vs Peers

How does SSAB A's PE Ratio compare to its peers?

SSAB A PE Ratio vs Peers

The above table shows the PE ratio for SSAB A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.8x
BOL Boliden	8.6x	-13.4%	kr90.4b
HOLM B Holmen	17.9x	-16.2%	kr68.9b
HPOL B HEXPOL	12.3x	6.7%	kr29.9b
BILL BillerudKorsnäs	12.4x	7.3%	kr24.6b
SSAB A SSAB	2.4x	-55.9%	kr44.6b

Forward PE

Price-To-Earnings vs Peers: SSAB A is good value based on its Price-To-Earnings Ratio (2.4x) compared to the peer average (12.8x).

Price to Earnings Ratio vs Industry

How does SSAB A's PE Ratio compare vs other companies in the European Metals and Mining Industry?

Price-To-Earnings vs Industry: SSAB A is good value based on its Price-To-Earnings Ratio (2.4x) compared to the Swedish Metals and Mining industry average (13.1x)

Price to Earnings Ratio vs Fair Ratio

What is SSAB A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SSAB A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.4x
Fair PE Ratio	3.4x

Price-To-Earnings vs Fair Ratio: SSAB A is good value based on its Price-To-Earnings Ratio (2.4x) compared to the estimated Fair Price-To-Earnings Ratio (3.4x).

Share Price vs Fair Value

What is the Fair Price of SSAB A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SSAB A (SEK45.48) is trading below our estimate of fair value (SEK50.53)

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

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.

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Future Growth

How is SSAB 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

-55.9%

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 (-55.9% per year).

Earnings vs Market: SSAB A's earnings are forecast to decline over the next 3 years (-55.9% 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 (-13.3% per year).

High Growth Revenue: SSAB A's revenue is forecast to decline over the next 3 years (-13.3% 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 (7.8%).

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Past Performance

How has SSAB 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

37.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SSAB A has high quality earnings.

Growing Profit Margin: SSAB A's current net profit margins (17.8%) are higher than last year (1.2%).

Past Earnings Growth Analysis

Earnings Trend: SSAB A's earnings have grown significantly by 37.4% per year over the past 5 years.

Accelerating Growth: SSAB A's earnings growth over the past year (2234.7%) exceeds its 5-year average (37.4% per year).

Earnings vs Industry: SSAB A earnings growth over the past year (2234.7%) exceeded the Metals and Mining industry 171.9%.

Return on Equity

High ROE: SSAB A's Return on Equity (23.5%) is considered high.

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Financial Health

How is SSAB's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: SSAB A's short term assets (SEK63.8B) exceed its short term liabilities (SEK29.4B).

Long Term Liabilities: SSAB A's short term assets (SEK63.8B) exceed its long term liabilities (SEK12.9B).

Debt to Equity History and Analysis

Debt Level: SSAB A has more cash than its total debt.

Reducing Debt: SSAB A's debt to equity ratio has reduced from 42% to 12.1% over the past 5 years.

Debt Coverage: SSAB A's debt is well covered by operating cash flow (171.1%).

Interest Coverage: SSAB A's interest payments on its debt are well covered by EBIT (39x coverage).

Balance Sheet

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

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

11.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SSAB A's dividend (11.54%) is higher than the bottom 25% of dividend payers in the Swedish market (1.67%).

High Dividend: SSAB A's dividend (11.54%) is in the top 25% of dividend payers in the Swedish market (5.41%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.2%), SSAB A's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.7%), SSAB A's dividend payments are well covered by cash flows.

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Management

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

6.3yrs

Average management tenure

CEO

Martin Lindqvist (59 yo)

11.42yrs

Tenure

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

Leadership Team

Experienced Management: SSAB A's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: SSAB A's board of directors are not considered experienced ( 1.4 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: Insufficient data to determine if 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31