OM:SSAB A

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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

Rewards

Trading at 57.4% below our estimate of its fair value

Earnings are forecast to grow 105.5% per year

Risk Analysis

No risks detected for SSAB A from our risk checks.


Snowflake Analysis

Adequate 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

0.8%

SSAB A

-4.2%

SE Metals and Mining

-0.4%

SE Market


1 Year Return

-4.5%

SSAB A

6.2%

SE Metals and Mining

13.2%

SE Market

Return vs Industry: SSAB A underperformed the Swedish Metals and Mining industry which returned 6% over the past year.

Return vs Market: SSAB A underperformed the Swedish Market which returned 13.3% over the past year.


Shareholder returns

SSAB AIndustryMarket
7 Day0.8%-4.2%-0.4%
30 Day1.6%3.5%3.9%
90 Day2.2%12.2%7.8%
1 Year-4.5%-4.5%9.8%6.2%16.3%13.2%
3 Year-32.7%-36.7%-2.7%-11.3%45.1%27.8%
5 Year70.9%60.7%133.6%99.1%83.9%44.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSAB A (SEK30.75) is trading below our estimate of fair value (SEK72.19)

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 unprofitable, so we can't compare its PE Ratio to the SE Metals and Mining industry average.

PE vs Market: SSAB A is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SSAB A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SSAB A is good value based on its PB Ratio (0.5x) compared to the SE Metals and Mining industry average (1.8x).


Next Steps

Future Growth

How is SSAB forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

105.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSAB A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: SSAB A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SSAB A's is expected to become profitable in the next 3 years.

Revenue vs Market: SSAB A's revenue (3.1% per year) is forecast to grow slower than the Swedish market (3.5% per year).

High Growth Revenue: SSAB A's revenue (3.1% per year) is forecast to grow slower than 20% 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 (4.6%).


Next Steps

Past Performance

How has SSAB performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSAB A is currently unprofitable.

Growing Profit Margin: SSAB A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SSAB A is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.

Accelerating Growth: Unable to compare SSAB A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SSAB A is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-56.6%).


Return on Equity

High ROE: SSAB A has a negative Return on Equity (-3.57%), as it is currently unprofitable.


Next Steps

Financial Health

How is SSAB's financial position?


Financial Position Analysis

Short Term Liabilities: SSAB A's short term assets (SEK34.0B) exceed its short term liabilities (SEK22.0B).

Long Term Liabilities: SSAB A's short term assets (SEK34.0B) exceed its long term liabilities (SEK12.8B).


Debt to Equity History and Analysis

Debt Level: SSAB A's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: SSAB A's debt to equity ratio has reduced from 61.5% to 28.1% over the past 5 years.

Debt Coverage: SSAB A's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: Insufficient data to determine if SSAB A's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

4.67%

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?

7.7yrs

Average management tenure


CEO

Martin Lindqvist (50 yo)

10yrs

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

NamePositionTenureCompensationOwnership
Martin Lindqvist
President10yrsno data0.0032%
SEK 915.0k
Håkan Folin
Executive VP & CFO7.67yrsno data0.0015%
SEK 420.1k
Martin Pei
Executive VP & CTO4.83yrsno data0.00010%
SEK 28.8k
Per Hillström
Head of Investor Relations4.08yrsno datano data
Jonas Bergstrand
Executive VP4.92yrsno data0.0023%
SEK 673.3k
Christina Båge-Friborg
Executive VP and Head of Sustainability3yrsno data0.00044%
SEK 126.6k
Mia Widell
Head of Group Communicationsno datano datano data
Maria Långberg
Executive VP4.92yrsno data0.00068%
SEK 195.7k
Steven Hansen
VP & Chief Technical Officer of SSAB Americas12.58yrsno datano data
Tim Wensits
Chief Information Officer & VP of SSAB NAD12.58yrsno datano data
Charles Schmitt
Executive VP & Head of SSAB Americas9.5yrsno data0.00029%
SEK 83.4k
Gregoire Parenty
Head of SSAB Services8.92yrsno datano data

7.7yrs

Average Tenure

55yo

Average Age

Experienced Management: SSAB A's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Lindqvist
President10yrsno data0.0032%
SEK 915.0k
Annareetta Lumme-Timonen
Director0.75yrno datano data
Bengt Kjell
Chairman of the Board5.75yrskr2.11m0.0039%
SEK 1.1m
Pasi Laine
Independent Director3.75yrskr600.00k0.00055%
SEK 158.2k
Sture Bergvall
Employee Representative Director2yrsno datano data
Bo Annvik
Independent Director1.75yrskr735.00kno data
Patrick Sjöholm
Employee Representative Director0.75yrno datano data
Marie Grönborg
Independent Director1.75yrskr735.00kno data
Petra Einarsson
Independent Director6.33yrskr710.00k0.00097%
SEK 279.1k
Tomas Jansson
Alternate Director2yrsno datano data
Tomas Karlsson
Employee Representative Director0.75yrno datano data
Marika Fredriksson
Independent Director4.75yrskr825.00k0.00010%
SEK 28.8k

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: SSAB A's board of directors are not considered experienced ( 2 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.


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: 1978
  • Industry: Steel
  • Sector: Materials
  • Market Cap: kr28.772b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSAB BOM (OMX Nordic Exchange Stockholm)Class B SharesSESEKAug 1992
0MHZLSE (London Stock Exchange)Class B SharesGBSEKAug 1992
SSABBSBATS-CHIXE (BATS 'Chi-X Europe')Class B SharesGBSEKAug 1992
SSABBHHLSE (OMX Nordic Exchange Helsinki)Class B SharesFIEURAug 1992
SSABBHBATS-CHIXE (BATS 'Chi-X Europe')Class B SharesGBEURAug 1992
SSAB AOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKOct 1992
SKWADB (Deutsche Boerse AG)YesClass A SharesDEEUROct 1992
SSAA.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDOct 1992
0KIILSE (London Stock Exchange)YesClass A SharesGBSEKOct 1992
SSABASBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBSEKOct 1992
SSABAHHLSE (OMX Nordic Exchange Helsinki)YesClass A SharesFIEUROct 1992
SSABAHBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEUROct 1992
SSAA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDFeb 2010

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 19:47
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.