NYSE:EAF

Stock Analysis Report

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Executive Summary

GrafTech International Ltd. researches, develops, manufactures, and sells graphite and carbon based products worldwide. More Details


Snowflake Analysis

Undervalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EAF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EAF's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-5.1%

EAF

-3.8%

US Electrical

-4.6%

US Market


1 Year Return

45.0%

EAF

66.6%

US Electrical

38.5%

US Market

Return vs Industry: EAF underperformed the US Electrical industry which returned 66.6% over the past year.

Return vs Market: EAF exceeded the US Market which returned 38.5% over the past year.


Shareholder returns

EAFIndustryMarket
7 Day-5.1%-3.8%-4.6%
30 Day15.1%3.0%0.6%
90 Day50.3%12.7%1.9%
1 Year45.7%45.0%69.9%66.6%41.5%38.5%
3 Yearn/a76.9%66.9%56.7%46.7%
5 Yearn/a109.0%92.7%123.5%98.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EAF ($11.83) is trading below our estimate of fair value ($22.87)

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


Price To Earnings Ratio

PE vs Industry: EAF is good value based on its PE Ratio (7.3x) compared to the US Electrical industry average (31.3x).

PE vs Market: EAF is good value based on its PE Ratio (7.3x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: EAF is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: EAF has negative assets, so we can't compare its PB Ratio to the US Electrical industry average.


Next Steps

Future Growth

How is GrafTech International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EAF's forecast earnings growth (18.9% per year) is above the savings rate (2%).

Earnings vs Market: EAF's earnings (18.9% per year) are forecast to grow slower than the US market (20.3% per year).

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

Revenue vs Market: EAF's revenue (10.9% per year) is forecast to grow faster than the US market (10.4% per year).

High Growth Revenue: EAF's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EAF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GrafTech International performed over the past 5 years?

49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAF has high quality earnings.

Growing Profit Margin: EAF's current net profit margins (35.5%) are lower than last year (41.6%).


Past Earnings Growth Analysis

Earnings Trend: EAF has become profitable over the past 5 years, growing earnings by 49.7% per year.

Accelerating Growth: EAF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EAF had negative earnings growth (-41.6%) over the past year, making it difficult to compare to the Electrical industry average (-10.8%).


Return on Equity

High ROE: EAF's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is GrafTech International's financial position?


Financial Position Analysis

Short Term Liabilities: EAF has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: EAF has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: EAF has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: EAF's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: EAF's debt is well covered by operating cash flow (39.9%).

Interest Coverage: EAF's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is GrafTech International current dividend yield, its reliability and sustainability?

0.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EAF's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: EAF's dividend (0.34%) is low compared to the top 25% of dividend payers in the US market (3.76%).


Stability and Growth of Payments

Stable Dividend: EAF is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EAF is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EAF is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Dave Rintoul (62 yo)

2.92yrs

Tenure

US$2,361,058

Compensation

Mr. David J. Rintoul, also known as Dave, has been the President, Chief Executive Officer and Director of GrafTech International Ltd. since March 1, 2018. Mr. Rintoul served as Senior Vice President of Tub...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD2.36M) is below average for companies of similar size in the US market ($USD4.96M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Denis Turcotte
Executive Chairman2.92yrsUS$19.02kno data
David Rintoul
President2.92yrsUS$2.36m0.0042%
$ 133.4k
Quinn Coburn
CFO, VP of Finance & Treasurer5.75yrsUS$667.14kno data
Jeremy Halford
Senior Vice President of Operations & Development1.75yrsUS$1.51m0.0027%
$ 85.0k
Gina Gunning
Chief Legal Officer & Corporate Secretary2.58yrsUS$948.34k0.00098%
$ 31.0k
Wendy Watson
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Inigo Perez Ortiz
Senior Vice President of Commercial1yrno datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: EAF's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Denis Turcotte
Executive Chairman2.92yrsUS$19.02kno data
David Rintoul
President2.92yrsUS$2.36m0.0042%
$ 133.4k
Leslie Dunn
Independent Director0.50yrno datano data
Brian Acton
Independent Director2.83yrsUS$125.00k0.0019%
$ 59.1k
Michel Dumas
Independent Director2.83yrsUS$140.00kno data
Jeffrey Dutton
Director4.08yrsUS$19.02kno data
Catherine Clegg
Independent Director1.92yrsUS$97.57kno data
Anthony Taccone
Independent Director2.83yrsUS$125.00k0.0033%
$ 103.4k
David Gregory
Director1.83yrsUS$19.02kno data

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: EAF's board of directors are not considered experienced ( 2.8 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.


Top Shareholders

Company Information

GrafTech International Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GrafTech International Ltd.
  • Ticker: EAF
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$3.161b
  • Shares outstanding: 267.19m
  • Website: https://www.graftech.com

Number of Employees


Location

  • GrafTech International Ltd.
  • 982 Keynote Circle
  • Brooklyn Heights
  • Ohio
  • 44131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EAFNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2018
G6GDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2018

Biography

GrafTech International Ltd. researches, develops, manufactures, and sells graphite and carbon based products worldwide. It offers graphite electrodes to produce electric arc furnace steel and other ferrous...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 00:21
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.