Aperam SA (APAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aperam SA

ArcelorMittal SA

Why is Aperam SA ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.09

Negative results in Dec 19

ROCE(HY) Lowest at 6.01%
RAW MATERIAL COST(Y) Grown by 25.45% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.93%

With ROE of 5.17%, it has a Fair valuation with a 0.73 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.11%, its profits have risen by 105.7% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 18.11% in the last 1 year, much higher than market (Netherlands AEX) returns of 5.68%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Aperam SA should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Aperam SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aperam SA

21.83%

-2.66

34.95%

Netherlands AEX

5.05%

0.38

14.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.16%

EBIT Growth (5y)

-3.12%

EBIT to Interest (avg)

15.09

Debt to EBITDA (avg)

0.66

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.63

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

53.19%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

14.88%

ROE (avg)

14.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.73

EV to EBIT

28.39

EV to EBITDA

9.46

EV to Capital Employed

0.80

EV to Sales

0.54

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

2.81%

ROE (Latest)

5.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Aperam SA

Cash and Eqv

Highest at EUR 375 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 89.94%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

At EUR 79 MM has Grown at 11.27%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (EUR MM)

Here's what is not working for Aperam SA

Net Sales

Lowest at EUR 1,972 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Operating Profit

Lowest at EUR 160 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Pre-Tax Profit

Lowest at EUR 79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Net Profit

Lowest at EUR 52.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

Net Profit

Fallen at -55.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

EPS

Lowest at EUR 0.83

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Inventory Turnover Ratio

Lowest at 2.93%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 25.45% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales