A Look at SSAB (OM:SSAB A) Valuation Following New Fossil-Free Steel Partnership with EAB

SSAB (OM:SSAB A) just announced a partnership with EAB to provide fossil-free steel, including SSAB Zero, for use in EAB’s main product lines. EAB has already adopted SSAB Zero in its Radioshuttle systems for warehouse management, aiming to boost storage efficiency and reduce energy use.

See our latest analysis for SSAB.

SSAB’s share price has surged 49.6% since the start of the year, with recent momentum likely fueled by initiatives such as the EAB partnership and an increased focus on fossil-free steel. The company’s one-year total shareholder return of nearly 41% outpaces many peers, which suggests that investors are increasingly confident in SSAB’s growth prospects and ability to capture new demand in sustainable manufacturing.

If the move toward greener steel has you thinking bigger, now is the perfect moment to broaden your horizons and discover fast growing stocks with high insider ownership

After such a strong rally and a wave of positive news, the real question is whether SSAB shares still have room to run or if future growth is already fully reflected in the current price. Is this a buying opportunity, or has the market already accounted for the next chapter for SSAB?

Most Popular Narrative: 2.6% Undervalued

SSAB’s most widely followed narrative assigns a fair value just above the recent share price, rooted in long-term profit margin expansion and steady gains in high-margin steel segments. This perspective relies on a blend of hopes around sustainable steel demand and a critical lens on execution risks.

SSAB's clear leadership in fossil-free steel (SSAB Zero, HYBRIT initiative) is attracting strong long-term demand from major OEMs (e.g., Volvo Cars partnership) and enabling premium pricing for advanced high-strength and sustainable steels. As decarbonization policies expand and "green steel" procurement accelerates among automakers and infrastructure players, this should support both higher revenue growth and margin expansion over the next decade.

Read the complete narrative.

Curious what drives this valuation edge? The numbers behind the narrative point to compounding effects from quality margins and durable growth assumptions, not just a simple market rebound. Unpack the financial model to see which quietly ambitious forecasts push SSAB’s fair value above current levels. The logic might surprise you.

Result: Fair Value of $69.65 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent overcapacity in Europe and delays in SSAB's Luleå transformation project could threaten profit margins and disrupt future growth expectations.

Find out about the key risks to this SSAB narrative.

Build Your Own SSAB Narrative

If you see the story differently or want to dig deeper into the data, you can craft your own narrative in just a few quick steps. Do it your way

A great starting point for your SSAB research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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