FERROGLOBE PLC (GSM)
GB00BYW6GV68 - Common Stock
Taking everything into account, GSM scores 6 out of 10 in our fundamental rating. GSM was compared to 154 industry peers in the Metals & Mining industry. While GSM has a great profitability rating, there are some minor concerns on its financial health. GSM is cheap, but on the other hand it scores bad on growth. This makes GSM very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GSM was profitable.
In the past year GSM had a positive cash flow from operations.
In multiple years GSM reported negative net income over the last 5 years.
In multiple years GSM reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.96%, GSM is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
With a decent Return On Equity value of 9.97%, GSM is doing good in the industry, outperforming 78.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.21%, GSM belongs to the top of the industry, outperforming 84.42% of the companies in the same industry.
GSM had an Average Return On Invested Capital over the past 3 years of 17.85%. This is significantly above the industry average of 8.86%.
The 3 year average ROIC (17.85%) for GSM is well above the current ROIC(12.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 9.97% | ||
| ROIC | 12.21% |
ROA(3y)6.73%
ROA(5y)-2.85%
ROE(3y)8.67%
ROE(5y)-26%
ROIC(3y)17.85%
ROIC(5y)N/A
1.3 Margins
GSM has a Profit Margin of 5.29%. This is in the better half of the industry: GSM outperforms 72.08% of its industry peers.
GSM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.47%, GSM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
GSM's Operating Margin has improved in the last couple of years.
GSM's Gross Margin of 46.71% is amongst the best of the industry. GSM outperforms 87.01% of its industry peers.
In the last couple of years the Gross Margin of GSM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 5.29% | ||
| GM | 46.71% |
OM growth 3YN/A
OM growth 5Y14.85%
PM growth 3YN/A
PM growth 5Y22.11%
GM growth 3Y20.06%
GM growth 5Y5.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GSM is creating value.
Compared to 1 year ago, GSM has about the same amount of shares outstanding.
The number of shares outstanding for GSM has been increased compared to 5 years ago.
The debt/assets ratio for GSM has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of GSM is 2.60, which is a good value as it means it would take GSM, 2.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GSM (2.60) is better than 77.92% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that GSM is not too dependend on debt financing.
The Debt to Equity ratio of GSM (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | N/A |
ROIC/WACC1.28
WACC9.52%
2.3 Liquidity
A Current Ratio of 2.10 indicates that GSM has no problem at all paying its short term obligations.
GSM's Current ratio of 2.10 is in line compared to the rest of the industry. GSM outperforms 42.21% of its industry peers.
A Quick Ratio of 1.33 indicates that GSM should not have too much problems paying its short term obligations.
GSM has a Quick ratio (1.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for GSM have decreased strongly by -76.95% in the last year.
The Earnings Per Share has been growing by 20.45% on average over the past years. This is a very strong growth
GSM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.49%.
GSM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.95% yearly.
EPS 1Y (TTM)-76.95%
EPS 3YN/A
EPS 5Y20.45%
EPS growth Q2Q-78.57%
Revenue 1Y (TTM)-36.49%
Revenue growth 3Y12.97%
Revenue growth 5Y-5.95%
Revenue growth Q2Q-16.19%
3.2 Future
Based on estimates for the next years, GSM will show a decrease in Earnings Per Share. The EPS will decrease by -2.58% on average per year.
GSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.
EPS Next Y-50.21%
EPS Next 2Y-9.95%
EPS Next 3Y-2.58%
EPS Next 5YN/A
Revenue Next Year-8.33%
Revenue Next 2Y3.24%
Revenue Next 3Y3.37%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.58 indicates a rather cheap valuation of GSM.
Compared to the rest of the industry, the Price/Earnings ratio of GSM indicates a rather cheap valuation: GSM is cheaper than 92.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GSM to the average of the S&P500 Index (28.28), we can say GSM is valued rather cheaply.
With a Price/Forward Earnings ratio of 15.22, GSM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSM indicates a somewhat cheap valuation: GSM is cheaper than 70.13% of the companies listed in the same industry.
GSM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSM indicates a rather cheap valuation: GSM is cheaper than 95.45% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GSM is valued cheaper than 87.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.42 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
The excellent profitability rating of GSM may justify a higher PE ratio.
GSM's earnings are expected to decrease with -2.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-9.95%
EPS Next 3Y-2.58%
5. Dividend
5.1 Amount
GSM has a yearly dividend return of 0.24%, which is pretty low.
GSM's Dividend Yield is comparable with the industry average which is at 2.96.
With a Dividend Yield of 0.24, GSM pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
GSM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-9.95%
EPS Next 3Y-2.58%
FERROGLOBE PLC
NASDAQ:GSM (5/3/2024, 7:00:01 PM)
After market: 5.38 0 (0%)5.38
+0.04 (+0.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 15.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 9.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.47% | ||
| PM (TTM) | 5.29% | ||
| GM | 46.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-76.95%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-50.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-36.49%
Revenue growth 3Y12.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 1Y
OCF growth 3Y
OCF growth 5Y