4.9 USD
-0.04 (-0.81%)
5 USD
+0.1 (+2.04%)
We assign a fundamental rating of 3 out of 10 to GSM. GSM was compared to 154 industry peers in the Metals & Mining industry. Both the profitability and financial health of GSM have multiple concerns. GSM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- GSM had negative earnings in the past year.
- GSM had a positive operating cash flow in the past year.
- In multiple years GSM reported negative net income over the last 5 years.
- GSM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- GSM's Return On Assets of -7.65% is on the low side compared to the rest of the industry. GSM is outperformed by 65.58% of its industry peers.
- GSM's Return On Equity of -14.98% is on the low side compared to the rest of the industry. GSM is outperformed by 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.65% | ||
| ROE | -14.98% | ||
| ROIC | N/A |
ROA(3y)9.6%
ROA(5y)0.65%
ROE(3y)27.35%
ROE(5y)-13.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Operating Margin of GSM has grown nicely.
- GSM has a Gross Margin of 32.81%. This is in the better half of the industry: GSM outperforms 68.18% of its industry peers.
- In the last couple of years the Gross Margin of GSM has grown nicely.
- The Profit Margin and Operating Margin are not available for GSM so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 32.81% |
OM growth 3Y48.57%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.96%
GM growth 5Y8.62%
2. Health
2.1 Basic Checks
- GSM does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for GSM has been reduced compared to 1 year ago.
- GSM has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GSM has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of GSM is 10.20, which is on the high side as it means it would take GSM, 10.20 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of GSM (10.20) is better than 61.69% of its industry peers.
- GSM has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.15, GSM is in line with its industry, outperforming 55.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 10.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.15%
2.3 Liquidity
- GSM has a Current Ratio of 1.66. This is a normal value and indicates that GSM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.66, GSM is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- A Quick Ratio of 0.91 indicates that GSM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.91, GSM is doing worse than 73.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The earnings per share for GSM have decreased strongly by -181.82% in the last year.
- GSM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.89%.
- The Revenue has been growing slightly by 0.35% on average over the past years.
EPS 1Y (TTM)-181.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-118.18%
Revenue 1Y (TTM)-16.89%
Revenue growth 3Y-2.6%
Revenue growth 5Y0.35%
Sales Q2Q%-28.1%
3.2 Future
- GSM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.51% yearly.
- GSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.69% yearly.
EPS Next Y-230.93%
EPS Next 2Y-35.85%
EPS Next 3Y36.51%
EPS Next 5YN/A
Revenue Next Year-21.48%
Revenue Next 2Y-1.9%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for GSM. In the last year negative earnings were reported.
- GSM is valuated quite expensively with a Price/Forward Earnings ratio of 44.10.
- GSM's Price/Forward Earnings is on the same level as the industry average.
- GSM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 44.1 |
4.2 Price Multiples
- GSM's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, GSM is valued a bit cheaper than 75.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.01 | ||
| EV/EBITDA | 51.91 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as GSM's earnings are expected to grow with 36.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-35.85%
EPS Next 3Y36.51%
5. Dividend
5.1 Amount
- GSM has a Yearly Dividend Yield of 1.10%.
- GSM's Dividend Yield is a higher than the industry average which is at 1.02.
- Compared to the average S&P500 Dividend Yield of 1.82, GSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
- GSM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-8.71%
EPS Next 2Y-35.85%
EPS Next 3Y36.51%
FERROGLOBE PLC / GSM FAQ
What is the fundamental rating for GSM stock?
ChartMill assigns a fundamental rating of 3 / 10 to GSM.
What is the valuation status for GSM stock?
ChartMill assigns a valuation rating of 2 / 10 to FERROGLOBE PLC (GSM). This can be considered as Overvalued.
What is the profitability of GSM stock?
FERROGLOBE PLC (GSM) has a profitability rating of 3 / 10.
How financially healthy is FERROGLOBE PLC?
The financial health rating of FERROGLOBE PLC (GSM) is 3 / 10.
What is the expected EPS growth for FERROGLOBE PLC (GSM) stock?
The Earnings per Share (EPS) of FERROGLOBE PLC (GSM) is expected to decline by -230.93% in the next year.