Ferroglobe Plc Stock Fair Value Calculator – FERROGLOBE PLC Reports Fourth Quarter FY2022 Earnings Results on February 22, 2023

Earnings Overview

On February 22 2023, Ferroglobe ($NASDAQ:GSM) PLC announced its earnings results for the fourth quarter of FY2022, ending December 31 2022. The company reported total revenue of USD 25.3 million, a 61.8% drop compared to the same quarter of the previous year. Net income also decreased by 21.3% year over year, to USD 448.6 million.

Transcripts Simplified

Revenue for the fourth quarter was $449 million, down 24% from the third quarter due to lower volumes and pricing. Raw materials and energy consumption was flat from the third quarter and increased as a percentage of sales to 63%. An impairment charge of $44 million was taken due to high energy prices. Adjusted EBITDA margins remained strong at 29%, and net profit for the full year was $462 million.

Average selling price across the portfolio increased by 59%, resulting in a benefit of approximately $1 billion. Cash balance at the end of Q4 was $323 million, up from $237 million in the prior quarter.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Price History

On Wednesday, FERROGLOBE PLC, an international producer of silicon and manganese-based specialty alloys and metals, reported its fourth quarter earnings results for the financial year 2022 ending on the 22nd of February 2023. With the release of its earnings report, the stock opened at a price of $4.3 and closed at the same figure, indicating a 1.6% decrease from its last closing price of $4.4. The company had seen an improvement in its operating performance due to increased sales in the North American region, especially in its silicon products. This increase in demand was partially offset by lower demand for its manganese alloy products.

In addition, FERROGLOBE PLC’s operating costs, including raw materials and energy consumption, had risen significantly during the fourth quarter of 2022. Despite the decrease in its stock price on Wednesday, FERROGLOBE PLC still has strong potential for growth and increased profitability in the coming quarters. The company plans to continue to focus on expanding its production capacity and optimizing its operational efficiencies, which should help it generate higher revenues and profits in the future. Live Quote…

Analysis – Ferroglobe Plc Stock Fair Value Calculator

GoodWhale has conducted a thorough analysis of FERROGLOBE PLC‘s fundamentals, and our proprietary Valuation Line has revealed that the intrinsic value of their share is around $6.1. This implies that the stock is currently trading at $4.3, which is 28.9% lower than its intrinsic value. This indicates that the stock of FERROGLOBE PLC is undervalued and may provide an opportunity for investors to buy at a discount. More…

Peers

Ferroglobe PLC is one of the leading players in the ferroalloys industry, facing stiff competition from established players such as Eramet SA, Hangzhou Yitong New Material Co Ltd, and Sichuan Hongda Co Ltd. All these companies are vying for market share and dominance in the ferroalloys space, with the goal of becoming the top supplier of these essential metals and alloys. As such, Ferroglobe PLC must stay ahead of its competitors in terms of technological innovation, product quality, and customer service in order to remain competitive.

– Eramet SA ($LTS:0MGV)

Eramet SA is a French mining and metallurgical company with interests in the extraction, production and processing of manganese and nickel ore. The company has a market capitalization of 2.69 billion Euros as of 2023 and a Return on Equity of 80.99%. This reflects the strong financial performance of the company and its ability to generate profits from its operations. The company has operations in France, Finland, Norway and Australia, with its main focus being the production of high-quality manganese and nickel alloys, which are used in various industries including automotive and aerospace. The company also produces a range of products for the electrical and electronics industry.

– Hangzhou Yitong New Material Co Ltd ($SZSE:300930)

Hangzhou Yitong New Material Co Ltd is a Chinese industrial enterprise that specializes in the production of polymer materials. The company has a market capitalization of 3.16 billion as of 2023, which indicates its size and strength in the industry. Furthermore, its return on equity (ROE) stands at 7.96%, demonstrating its ability to generate profits from its shareholders’ investments. This company is well-positioned to remain competitive in the industry and to generate returns for its shareholders.

– Sichuan Hongda Co Ltd ($SHSE:600331)

S i c h u a n H o n g d a C o L t d i s a C h i n e s e c h e m i c a l c o m p a n y f o c u s e d o n t h e p r o d u c t i o n a n d s a l e o f c h e m i c a l p r o d u c t s , i n c l u d i n g a m m o n i u m s u l f a t e , c a l c i u m c h l o r i d e , a n d m a g n e s i u m h y d r o x i d e . T h e c o m p a n y h a s a m a r k e t c a p o f 7 . 0 1 B a s o f 2 0 2 3 , w h i c h i n d i c a t e s t h a t t h e c o m p a n y i s a m i d – s i z e d b u s i n e s s i n t e r m s o f m a r k e t c a p i t a l i z a t i o n . A d d i t i o n a l l y , t h e c o m p a n y h a s a n i m p r e s s i v e R e t u r n o n E q u i t y o f 2 4 . 7 7 % , w h i c h i n d i c a t e s t h a t t h e c o m p a n y h a s b e e n a b l e t o g e n e r a t e s t r o n g r e t u r n s f r o m i t s i n v e s t m e n t s . T h i s s u g g e s t s t h a t S i c h u a n H o n g d a C o L t d i s a s u c c e s s f u l a n d w e l l – m a n a g e d b u s i n e s s

Summary

Investors in FERROGLOBE PLC have cause for concern following the company’s financial results for the fourth quarter of FY2022. Total revenue was down 61.8% year over year, and net income decreased 21.3%. This is indicative of a difficult economic climate for the company, and underscores the need for investors to watch FERROGLOBE PLC closely for signs of improvement. In the short-term, it may be wise to avoid investing in the company until it can demonstrate more stability and potential for growth.