Latest news with #Ferroglobe
The Market Online
13 hours ago
- Business
- The Market Online
The 5-Minute Investor Podcast, Ep. 15: Ferroglobe and HPQ Silicon
Welcome to episode 15 of The 5-Minute Investor Podcast, where Stockhouse columnists Jonathon Brown and Trevor Abes each deliver a 2.5-minute stock pick related to recent news stories with investment implications. Here is Jon's supporting material for episode 15: Ferroglobe Reports First Quarter 2025 Financial Results (Stockhouse). Jon's stock pick for this week is Ferroglobe (NASDA:GSM), a global producer of silicon metal and silicon- and manganese-based alloys for the solar, electronics, automotive, consumer products, construction and energy markets. Ferroglobe stock has given back 28.09 per cent year-over-year but remains up by 573.68 per cent since 2020, last trading at US$3.84 per share. Here is Trevor's: Here's a list of past episodes: Thanks for listening! The 5-Minute Investor is on Spotify, YouTube, iHeartRadio, Podbean, Stockhouse or wherever finer podcasts are found. Join the discussion: Find out what investors are saying about The 5-Minute Investor Podcast and this week's stock picks on the Ferroglobe PLC and HPQ Silicon Inc. Bullboards, and make sure to check out the rest of Stockhouse's stock forums and message boards. The material provided in this podcast is for information only and should not be treated as investment advice. For full disclaimer information, please click here. (Top image: Adobe Stock)
Yahoo
23-05-2025
- Business
- Yahoo
Ferroglobe (NASDAQ:GSM) Will Pay A Dividend Of $0.014
Ferroglobe PLC's (NASDAQ:GSM) investors are due to receive a payment of $0.014 per share on 26th of June. This means the annual payment will be 1.5% of the current stock price, which is lower than the industry average. We check all companies for important risks. See what we found for Ferroglobe in our free report. If it is predictable over a long period, even low dividend yields can be attractive. Even in the absence of profits, Ferroglobe is paying a dividend. It is also not generating any free cash flow, we definitely have concerns when it comes to the sustainability of the dividend. Over the next year, EPS is forecast to expand by 97.3%. This is the right direction to be moving, but it is not enough to achieve profitability. Unfortunately, for the dividend to continue at current levels the company definitely needs to get there sooner rather than later. View our latest analysis for Ferroglobe Looking back, Ferroglobe's dividend hasn't been particularly consistent. Due to this, we are a little bit cautious about the dividend consistency over a full economic cycle. Since 2016, the annual payment back then was $0.32, compared to the most recent full-year payment of $0.056. The dividend has fallen 83% over that period. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. It's encouraging to see that Ferroglobe has been growing its earnings per share at 45% a year over the past five years. While the company is not yet turning a profit, it is growing at a good rate. If profitability can be achieved soon and growth continues apace, this stock could certainly turn into a solid dividend payer. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. Strong earnings growth means Ferroglobe has the potential to be a good dividend stock in the future, despite the current payments being at elevated levels. We would be a touch cautious of relying on this stock primarily for the dividend income. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. See if management have their own wealth at stake, by checking insider shareholdings in Ferroglobe stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-04-2025
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At Ferroglobe (NASDAQ:GSM)
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. With that in mind, we've noticed some promising trends at Ferroglobe (NASDAQ:GSM) so let's look a bit deeper. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Ferroglobe is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.081 = US$81m ÷ (US$1.5b - US$449m) (Based on the trailing twelve months to December 2024). Thus, Ferroglobe has an ROCE of 8.1%. Ultimately, that's a low return and it under-performs the Metals and Mining industry average of 10%. See our latest analysis for Ferroglobe In the above chart we have measured Ferroglobe's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Ferroglobe for free. We're delighted to see that Ferroglobe is reaping rewards from its investments and has now broken into profitability. The company was generating losses five years ago, but now it's turned around, earning 8.1% which is no doubt a relief for some early shareholders. In regards to capital employed, Ferroglobe is using 25% less capital than it was five years ago, which on the surface, can indicate that the business has become more efficient at generating these returns. The reduction could indicate that the company is selling some assets, and considering returns are up, they appear to be selling the right ones. In summary, it's great to see that Ferroglobe has been able to turn things around and earn higher returns on lower amounts of capital. And a remarkable 635% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if Ferroglobe can keep these trends up, it could have a bright future ahead. If you'd like to know about the risks facing Ferroglobe, we've discovered 3 warning signs that you should be aware of. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
18-03-2025
- Business
- Yahoo
An Intrinsic Calculation For Ferroglobe PLC (NASDAQ:GSM) Suggests It's 47% Undervalued
The projected fair value for Ferroglobe is US$7.57 based on 2 Stage Free Cash Flow to Equity Ferroglobe is estimated to be 47% undervalued based on current share price of US$4.04 In this article we are going to estimate the intrinsic value of Ferroglobe PLC (NASDAQ:GSM) by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Believe it or not, it's not too difficult to follow, as you'll see from our example! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Check out our latest analysis for Ferroglobe We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$95.5m US$88.0m US$127.0m US$115.6m US$109.2m US$105.9m US$104.6m US$104.5m US$105.3m US$106.7m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Est @ -9.01% Est @ -5.48% Est @ -3.01% Est @ -1.28% Est @ -0.07% Est @ 0.77% Est @ 1.37% Present Value ($, Millions) Discounted @ 9.0% US$87.6 US$74.1 US$98.1 US$81.9 US$71.0 US$63.2 US$57.2 US$52.5 US$48.5 US$45.1 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$679m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.0%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$107m× (1 + 2.8%) ÷ (9.0%– 2.8%) = US$1.8b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$1.8b÷ ( 1 + 9.0%)10= US$743m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$1.4b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$4.0, the company appears quite good value at a 47% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Ferroglobe as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.0%, which is based on a levered beta of 1.216. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market. Opportunity Annual earnings are forecast to grow faster than the American market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by earnings. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price sitting below the intrinsic value? For Ferroglobe, there are three relevant aspects you should look at: Risks: Take risks, for example - Ferroglobe has 2 warning signs we think you should be aware of. Future Earnings: How does GSM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQCM every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
23-02-2025
- Business
- Yahoo
Ferroglobe (NASDAQ:GSM) Is Paying Out A Larger Dividend Than Last Year
Ferroglobe PLC (NASDAQ:GSM) will increase its dividend from last year's comparable payment on the 26th of March to $0.014. This takes the annual payment to 1.6% of the current stock price, which unfortunately is below what the industry is paying. See our latest analysis for Ferroglobe While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Before making this announcement, Ferroglobe's dividend was higher than its profits, but the free cash flows quite comfortably covered it. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend. Analysts expect a massive rise in earnings per share in the next year. If recent patterns in the dividend continue, we could see the payout ratio reaching 6.3% which is fairly sustainable. Even in its relatively short history, the company has reduced the dividend at least once. If the company cuts once, it definitely isn't argument against the possibility of it cutting in the future. Since 2016, the dividend has gone from $0.32 total annually to $0.056. Dividend payments have fallen sharply, down 83% over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. Given that the track record hasn't been stellar, we really want to see earnings per share growing over time. We are encouraged to see that Ferroglobe has grown earnings per share at 52% per year over the past five years. Strong earnings is nice to see, but unless this can be sustained on minimal reinvestment of profits, we would question whether dividends will follow suit. In summary, while it's always good to see the dividend being raised, we don't think Ferroglobe's payments are rock solid. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We would be a touch cautious of relying on this stock primarily for the dividend income. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 3 warning signs for Ferroglobe that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
