GrafTech International logged a -14.9% change during today's morning session, and is now trading at a price of $5.61 per share. The S&P 500 index moved -0.8% and the Nasdaq posted a -1.4% change.
GrafTech International shares moved -33.6% over the last 52 weeks, with a high of $12.03 and a low of $4.07. During this time, the stock lagged the S&P 500 index by -26.4%. As of January 2022, the company's 50-day average price is $5.38. GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The mid-cap Industrials company has 1,353 full time employees and is based in Brooklyn Heights, OH. GrafTech International has returned a 0.6% dividend yield over the last 12 months.
The Company Has a Steady Stream of Positive Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $1,791 | $1,224 | $1,346 |
| Revenue Growth | n/a | -31.63% | 9.92% |
| Gross Margins | 58.1% | 54.0% | 47.9% |
| Gross Margins Growth | n/a | -7.06% | -11.3% |
| Operating Margins | 54.4% | 48.1% | 37.8% |
| Operating Margins Growth | n/a | -11.58% | -21.41% |
| Earnings Per Share | $2.58 | $1.62 | $1.46 |
| EPS Growth | n/a | -37.21% | -9.88% |
| Free Cash Flow (MM) | $741 | $528 | $385 |
| FCF Growth | n/a | -28.82% | -27.07% |
| Capital Expenditures (MM) | -$64 | -$36 | -$58 |
| Net Debt / EBITDA | 1.68 | 1.93 | 1.67 |
GrafTech International Is Currently Fairly Valued:
Compared to the Industrials sector's average of 21.46, GrafTech International has a trailing twelve month P/E ratio of 3.1 and, according to its EPS guidance of 0.77, an expected P/E ratio of 7.3. GrafTech International's PEG ratio is -0.1 based on its -31.33% annual average growth rate of historical and projected earnings per share. This indicates that the company's shares are overvalued.
GrafTech International's P/B ratio is 5.3 compared to its sector average of 3.7. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading -16.4% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.89 * 1.056) = $6.7
GrafTech International's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
GrafTech International Is the Subject of Mixed Market Indicators:
5 analysts are following GrafTech International and have set target prices ranging from $3.07 to $10 per share. On average, they have given the company a rating of hold. At the current price of $5.61, EAF is trading -3.53% away from its average analyst target price of $5.81 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 2.8% of the company's shares are tied to short positions. Institutions own 95.4% of GrafTech International's shares, while the insider ownership rate stands at 0.15%. The biggest shareholder is Brookfield Asset Management Inc. with a 25% stake in the company worth approximately $357,757,359.
