Last Updated: 20 Sep 2024
Executive Summary
GrafTech International Ltd. (EAF) is a manufacturer of graphite and carbon based products. The company has been facing challenges in recent quarters, with declining revenue and profitability. The stock is currently trading at $0.87, near its 52-week low. Analysts are generally bearish on the stock, with a consensus rating of "Hold".
Company Overview
GrafTech International Ltd. is headquartered in Brooklyn Heights, Ohio. The company researches, develops, manufactures and sells graphite and carbon based products worldwide. GrafTech's products are used in a variety of industries, including automotive, aerospace, electronics, and energy.
Fundamental Analysis
GrafTech's financial performance has been weak in recent quarters. In the most recent quarter, the company reported a loss per share of $1.11, on revenue of $570 million. This compares to a loss per share of $0.89, on revenue of $573 million, in the same quarter last year.
The company's gross profit margin has also been declining, from 42.1% in the first quarter of 2023 to 38.6% in the first quarter of 2024. This is due to rising input costs and a decline in demand for the company's products.
GrafTech's balance sheet is also weak. The company has $1.2 billion in debt and only $189 million in cash. This gives the company a debt-to-equity ratio of 1.03, which is above the industry average.
Technical Analysis
The technical analysis of GrafTech's stock is also bearish. The stock is currently trading below its 50-day and 200-day moving averages. The stock also recently broke below a key support level at $1.00. This suggests that the stock could continue to decline in the near term.
Short Term Outlook
The short term outlook for GrafTech's stock is negative. The company is facing challenges on both the fundamental and technical fronts. Analysts are generally bearish on the stock, with a consensus rating of "Hold".
Long Term Outlook
The long term outlook for GrafTech's stock is also uncertain. The company is facing a number of challenges, including rising input costs, declining demand, and a weak balance sheet. If the company is unable to address these challenges, its stock could continue to decline in the long term.
Analyst Recommendations
Analysts are generally bearish on GrafTech's stock. The consensus rating is "Hold", with four analysts recommending a "Hold" rating and one analyst recommending a "Sell" rating. The average price target is $1.38, which is below the current stock price.
