FERROGLOBE PLC (GSM) Stock Fundamental Analysis
NASDAQ:GSM - Nasdaq - GB00BYW6GV68 - Common Stock
Taking everything into account, GSM scores 5 out of 10 in our fundamental rating. GSM was compared to 154 industry peers in the Metals & Mining industry. GSM scores excellent on profitability, but there are some minor concerns on its financial health. GSM has a bad growth rate and is valued cheaply. These ratings would make GSM suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GSM was profitable.
GSM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GSM reported negative net income in multiple years.
In multiple years GSM reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.47%, GSM is doing good in the industry, outperforming 64.63% of the companies in the same industry.
The Return On Equity of GSM (4.43%) is better than 65.31% of its industry peers.
GSM has a Return On Invested Capital of 7.58%. This is in the better half of the industry: GSM outperforms 78.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSM is significantly above the industry average of 8.76%.
The 3 year average ROIC (17.71%) for GSM is well above the current ROIC(7.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 4.43% | ||
| ROIC | 7.58% |
ROA(3y)6.64%
ROA(5y)-2.91%
ROE(3y)9.03%
ROE(5y)-25.78%
ROIC(3y)17.71%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.45%, GSM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
GSM's Profit Margin has improved in the last couple of years.
GSM has a better Operating Margin (7.60%) than 61.90% of its industry peers.
GSM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 40.94%, GSM belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
GSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 2.45% | ||
| GM | 40.94% |
OM growth 3YN/A
OM growth 5Y14.85%
PM growth 3YN/A
PM growth 5Y20.78%
GM growth 3Y20.06%
GM growth 5Y5.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GSM is creating some value.
The number of shares outstanding for GSM remains at a similar level compared to 1 year ago.
The number of shares outstanding for GSM has been increased compared to 5 years ago.
Compared to 1 year ago, GSM has an improved debt to assets ratio.
2.2 Solvency
GSM has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
GSM has a better Debt to FCF ratio (0.95) than 85.03% of its industry peers.
GSM has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.08, GSM is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC11.21%
2.3 Liquidity
GSM has a Current Ratio of 1.83. This is a normal value and indicates that GSM is financially healthy and should not expect problems in meeting its short term obligations.
GSM's Current ratio of 1.83 is on the low side compared to the rest of the industry. GSM is outperformed by 61.90% of its industry peers.
GSM has a Quick Ratio of 1.00. This is a normal value and indicates that GSM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GSM (1.00) is worse than 70.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for GSM have decreased strongly by -68.27% in the last year.
GSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.45% yearly.
Looking at the last year, GSM shows a decrease in Revenue. The Revenue has decreased by -4.08% in the last year.
The Revenue has been decreasing by -5.95% on average over the past years.
EPS 1Y (TTM)-68.27%
EPS 3YN/A
EPS 5Y20.45%
EPS Q2Q%-59.26%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y12.97%
Revenue growth 5Y-5.95%
Sales Q2Q%4%
3.2 Future
Based on estimates for the next years, GSM will show a decrease in Earnings Per Share. The EPS will decrease by -0.62% on average per year.
GSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y-60.17%
EPS Next 2Y-18.23%
EPS Next 3Y-0.62%
EPS Next 5YN/A
Revenue Next Year4.66%
Revenue Next 2Y5.65%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 12.33, the valuation of GSM can be described as correct.
81.63% of the companies in the same industry are more expensive than GSM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GSM to the average of the S&P500 Index (27.96), we can say GSM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.57, the valuation of GSM can be described as reasonable.
Based on the Price/Forward Earnings ratio, GSM is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GSM to the average of the S&P500 Index (24.11), we can say GSM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSM is valued cheaper than 93.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSM is valued cheaper than 96.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.99 | ||
| EV/EBITDA | 3.88 |
4.3 Compensation for Growth
GSM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-18.23%
EPS Next 3Y-0.62%
5. Dividend
5.1 Amount
GSM has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
GSM's Dividend Yield is a higher than the industry average which is at 3.22.
With a Dividend Yield of 1.27, GSM pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
DPN/A
EPS Next 2Y-18.23%
EPS Next 3Y-0.62%
FERROGLOBE PLC
NASDAQ:GSM (1/17/2025, 8:05:02 PM)
After market: 4.07 0 (0%)4.07
-0.01 (-0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners53.86%
Inst Owner Change0%
Ins Owners0.34%
Ins Owner Change0%
Market Cap764.71M
Analysts80
Price Target9.18 (125.55%)
Short Float %1.91%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)62.75%
Min EPS beat(2)-31.93%
Max EPS beat(2)157.43%
EPS beat(4)3
Avg EPS beat(4)142.76%
Min EPS beat(4)-31.93%
Max EPS beat(4)345.55%
EPS beat(8)7
Avg EPS beat(8)111.48%
EPS beat(12)9
Avg EPS beat(12)76.01%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.89%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)4.98%
Revenue beat(4)3
Avg Revenue beat(4)7.88%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)16.76%
Revenue beat(8)5
Avg Revenue beat(8)4.46%
Revenue beat(12)7
Avg Revenue beat(12)3.41%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-112.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.46 | ||
| P/FCF | 4.99 | ||
| P/OCF | 3.19 | ||
| P/B | 0.84 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 3.88 |
EPS(TTM)0.33
EY8.11%
EPS(NY)0.47
Fwd EY11.66%
FCF(TTM)0.81
FCFY20.02%
OCF(TTM)1.28
OCFY31.38%
SpS8.79
BVpS4.87
TBVpS4.02
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 4.43% | ||
| ROCE | 10.97% | ||
| ROIC | 7.58% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 10.08% | ||
| OM | 7.6% | ||
| PM (TTM) | 2.45% | ||
| GM | 40.94% | ||
| FCFM | 9.27% |
ROA(3y)6.64%
ROA(5y)-2.91%
ROE(3y)9.03%
ROE(5y)-25.78%
ROIC(3y)17.71%
ROIC(5y)N/A
ROICexc(3y)22.58%
ROICexc(5y)N/A
ROICexgc(3y)26.52%
ROICexgc(5y)N/A
ROCE(3y)25.67%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y12.29%
ROICexc growth 3YN/A
ROICexc growth 5Y13.1%
OM growth 3YN/A
OM growth 5Y14.85%
PM growth 3YN/A
PM growth 5Y20.78%
GM growth 3Y20.06%
GM growth 5Y5.66%
F-Score4
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.95 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 113.37% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 4.64 | ||
| Cash Conversion | 118.7% | ||
| Profit Quality | 377.6% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1 | ||
| Altman-Z | N/A |
F-Score4
WACC11.21%
ROIC/WACC0.68
Cap/Depr(3y)70.42%
Cap/Depr(5y)53.64%
Cap/Sales(3y)2.95%
Cap/Sales(5y)2.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.27%
EPS 3YN/A
EPS 5Y20.45%
EPS Q2Q%-59.26%
EPS Next Y-60.17%
EPS Next 2Y-18.23%
EPS Next 3Y-0.62%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y12.97%
Revenue growth 5Y-5.95%
Sales Q2Q%4%
Revenue Next Year4.66%
Revenue Next 2Y5.65%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
EBIT growth 1Y-53.7%
EBIT growth 3YN/A
EBIT growth 5Y8.02%
EBIT Next Year-19.29%
EBIT Next 3Y7.55%
EBIT Next 5YN/A
FCF growth 1Y-40.67%
FCF growth 3Y-8.86%
FCF growth 5YN/A
OCF growth 1Y-21.97%
OCF growth 3Y4.95%
OCF growth 5Y19.3%