GrafTech International Ltd. Fundamental Analysis (NYSE: EAF)
GrafTech International Ltd. Fundamental Analysis (NYSE: EAF)
GrafTech International Ltd. (NYSE: EAF) shows moderate financial fundamentals with a PE ratio of -1.52, profit margin of -38.43%, and ROE of 60.30%. The company generates $0.5B in annual revenue with weak year-over-year growth of -6.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EAF's fundamental strength across five key dimensions:
Efficiency Score
WeakEAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateEAF shows balanced valuation metrics.
Growth Score
WeakEAF faces weak or negative growth trends.
Financial Health Score
ExcellentEAF maintains a strong and stable balance sheet.
Profitability Score
WeakEAF struggles to sustain strong margins.
Key Financial Metrics
Is EAF Expensive or Cheap?
P/E Ratio
EAF trades at -1.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EAF's PEG of 3.53 indicates potential overvaluation.
Price to Book
The market values GrafTech International Ltd. at -0.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 27.77 times EBITDA. This signals the market has high growth expectations.
How Well Does EAF Make Money?
Net Profit Margin
For every $100 in sales, GrafTech International Ltd. keeps $-38.43 as profit after all expenses.
Operating Margin
Core operations generate -21.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $60.30 in profit for every $100 of shareholder equity.
ROA
GrafTech International Ltd. generates $-19.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GrafTech International Ltd. generates limited operating cash flow of $-108.36M, signaling weaker underlying cash strength.
Free Cash Flow
GrafTech International Ltd. generates weak or negative free cash flow of $-154.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.73 in free cash annually.
FCF Yield
EAF converts -50.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.60
vs 25 benchmark
ROA
Return on assets percentage
-0.19
vs 25 benchmark
ROCE
Return on capital employed
-0.12
vs 25 benchmark
How EAF Stacks Against Its Sector Peers
| Metric | EAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.52 | 27.10 | Better (Cheaper) |
| ROE | 60.30% | 1187.00% | Weak |
| Net Margin | -38.43% | 11.00% | Weak |
| Debt/Equity | -3.09 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 3.55 | 22.01 | Strong Liquidity |
| ROA | -19.13% | -1347792.00% (disorted) | Weak |
EAF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GrafTech International Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
324.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-621.41%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-249.18%
Industry Style: Cyclical, Value, Infrastructure
Declining