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Ferroglobe

Nasdaq:GSM
Snowflake Description

Mediocre balance sheet unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GSM
Nasdaq
$77M
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. The last earnings update was 29 days ago. More info.


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  • Ferroglobe has significant price volatility in the past 3 months.
GSM Share Price and Events
7 Day Returns
1.1%
NasdaqGS:GSM
0.4%
US Metals and Mining
5.3%
US Market
1 Year Returns
-78.8%
NasdaqGS:GSM
-27.9%
US Metals and Mining
-10.7%
US Market
GSM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ferroglobe (GSM) 1.1% -45.8% -52.1% -78.8% -95.6% -
US Metals and Mining 0.4% -17.2% -31.3% -27.9% -28% -10.6%
US Market 5.3% -13.6% -19.8% -10.7% 8% 20.4%
1 Year Return vs Industry and Market
  • GSM underperformed the Metals and Mining industry which returned -27.9% over the past year.
  • GSM underperformed the Market in United States of America which returned -10.7% over the past year.
Price Volatility
GSM
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Ferroglobe undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ferroglobe to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ferroglobe.

NasdaqGS:GSM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ .120000
Payout Ratio Company Filings (2019-12-31) -805.6%
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:GSM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.1%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.829 (1 + (1- 19%) (787.99%))
1.097
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.097 * 6.07%)
8.4%

Discounted Cash Flow Calculation for NasdaqGS:GSM using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Ferroglobe is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NasdaqGS:GSM Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.12 / (8.4% - 1.74%)
$0.46
NasdaqGS:GSM Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.46
Current discount Discount to share price of $0.46
= -1 x ($0.46 - $0.46) / $0.46
2.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ferroglobe is available for.
Intrinsic value
2%
Share price is $0.455 vs Future cash flow value of $0.46481
Current Discount Checks
For Ferroglobe to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ferroglobe's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ferroglobe's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ferroglobe's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ferroglobe's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:GSM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-2.15
NasdaqGS:GSM Share Price ** NasdaqGS (2020-03-31) in USD $0.46
United States of America Metals and Mining Industry PE Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 8.43x
United States of America Market PE Ratio Median Figure of 2,939 Publicly-Listed Companies 13.13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ferroglobe.

NasdaqGS:GSM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GSM Share Price ÷ EPS (both in USD)

= 0.46 ÷ -2.15

-0.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ferroglobe is loss making, we can't compare its value to the US Metals and Mining industry average.
  • Ferroglobe is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Ferroglobe's expected growth come at a high price?
Raw Data
NasdaqGS:GSM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Metals and Mining Industry PEG Ratio Median Figure of 22 Publicly-Listed Metals and Mining Companies -0.13x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ferroglobe, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ferroglobe's assets?
Raw Data
NasdaqGS:GSM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $3.54
NasdaqGS:GSM Share Price * NasdaqGS (2020-03-31) in USD $0.46
United States of America Metals and Mining Industry PB Ratio Median Figure of 105 Publicly-Listed Metals and Mining Companies 1.07x
United States of America Market PB Ratio Median Figure of 5,138 Publicly-Listed Companies 1.28x
NasdaqGS:GSM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GSM Share Price ÷ Book Value per Share (both in USD)

= 0.46 ÷ 3.54

0.13x

* Primary Listing of Ferroglobe.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ferroglobe is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Ferroglobe's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Ferroglobe has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ferroglobe expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ferroglobe has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.7%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ferroglobe expected to grow at an attractive rate?
  • Unable to compare Ferroglobe's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Ferroglobe's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Ferroglobe's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:GSM Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 9.7%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:GSM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:GSM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NasdaqGS:GSM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,603 -65 -364
2019-09-30 1,862 -4 -343
2019-06-30 2,004 70 -126
2019-03-31 2,173 103 -19
2018-12-31 2,274 74 44
2018-09-30 2,119 138 104
2018-06-30 2,046 93 101
2018-03-31 1,894 118 37
2017-12-31 1,742 150 -1
2017-09-30 1,663 25 -249
2017-06-30 1,576 100 -274
2017-03-31 1,549 104 -319

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Ferroglobe is high growth as no earnings estimate data is available.
  • Unable to determine if Ferroglobe is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:GSM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Ferroglobe Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GSM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NasdaqGS:GSM Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -2.15
2019-09-30 -2.02
2019-06-30 -0.74
2019-03-31 -0.11
2018-12-31 0.25
2018-09-30 0.61
2018-06-30 0.59
2018-03-31 0.22
2017-12-31 0.00
2017-09-30 -1.45
2017-06-30 -1.60
2017-03-31 -1.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ferroglobe will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Ferroglobe's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  2. Ferroglobe's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Ferroglobe's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ferroglobe has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ferroglobe performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ferroglobe's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ferroglobe does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Ferroglobe's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Ferroglobe's 1-year growth to the US Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Ferroglobe's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ferroglobe Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GSM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,603.05 -364.04 291.14
2019-09-30 1,861.70 -342.58 302.73
2019-06-30 2,004.37 -125.54 318.33
2019-03-31 2,172.77 -18.83 331.66
2018-12-31 2,274.04 43.66 339.29
2018-09-30 2,119.17 104.17 342.99
2018-06-30 2,046.39 101.21 329.04
2018-03-31 1,894.32 37.22 315.03
2017-12-31 1,741.69 -0.68 299.62
2017-09-30 1,663.35 -249.01 304.42
2017-06-30 1,576.45 -274.19 297.82
2017-03-31 1,548.60 -319.28 295.70
2016-12-31 1,576.04 -338.43 275.40
2016-09-30 1,495.58 -135.17 263.26
2016-06-30 1,413.57 -145.17 248.82
2016-03-31 1,364.99 -87.15 223.84
2015-12-31 1,316.59 -43.27 205.87
2015-09-30 1,366.41 4.54 210.32
2015-06-30 1,416.22 52.34 214.76
2015-03-31 1,440.77 46.69 215.84
2014-12-31 1,417.08 28.15 213.83
2013-12-31 1,463.88 28.45 217.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Ferroglobe has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Ferroglobe has efficiently used its assets last year compared to the US Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Ferroglobe improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Ferroglobe's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ferroglobe has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ferroglobe's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ferroglobe's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ferroglobe is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ferroglobe's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ferroglobe's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ferroglobe Company Filings, last reported 3 months ago.

NasdaqGS:GSM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 599.44 580.49 104.78
2019-09-30 664.30 667.31 178.81
2019-06-30 816.08 603.81 195.51
2019-03-31 855.10 574.15 218.82
2018-12-31 884.37 578.92 219.17
2018-09-30 987.39 572.13 131.67
2018-06-30 1,004.13 557.18 156.84
2018-03-31 979.50 565.39 198.57
2017-12-31 937.76 488.70 186.94
2017-09-30 915.84 619.67 193.44
2017-06-30 906.52 533.49 187.22
2017-03-31 902.87 512.10 176.29
2016-12-31 892.04 509.35 200.98
2016-09-30 1,170.77 461.62 133.37
2016-06-30 1,220.18 459.41 153.78
2016-03-31 1,271.75 438.39 118.00
2015-12-31 1,294.97 413.78 120.78
2015-09-30 1,294.97 413.78 120.78
2015-06-30 507.99 349.93 39.07
2015-03-31 507.68 528.28 48.65
2014-12-31 507.68 407.60 48.65
2013-12-31 783.97 456.19 98.97
  • Ferroglobe's level of debt (96.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (80.3% vs 96.8% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Ferroglobe has sufficient cash runway for 1.1 years based on current free cash flow.
  • Ferroglobe has less than a year of cash runway if free cash flow continues to grow at historical rates of 51.9% each year.
X
Financial health checks
We assess Ferroglobe's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ferroglobe has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ferroglobe's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
26.37%
Current annual income from Ferroglobe dividends.
If you bought $2,000 of Ferroglobe shares you are expected to receive $527 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ferroglobe's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.95%).
  • Ferroglobe's dividend is above the markets top 25% of dividend payers in United States of America (5.37%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:GSM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:GSM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
NasdaqGS:GSM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 0.120 12.831
2019-02-26 0.120 5.205
2018-11-26 0.240 11.618
2018-05-21 0.240 3.122
2018-04-30 0.000 0.000
2018-02-26 0.000 0.000
2017-11-28 0.000 0.000
2017-11-27 0.000 0.000
2017-05-22 0.000 0.000
2017-05-01 0.320 3.602
2017-03-17 0.320 3.182
2016-07-29 0.320 3.236
2016-02-08 0.320 3.620

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ferroglobe has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Ferroglobe has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Ferroglobe's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ferroglobe has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ferroglobe's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ferroglobe afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ferroglobe has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ferroglobe's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marco Levi
AGE 60
TENURE AS CEO 0.3 years
CEO Bio

Mr. Marco Levi serves as Director at Ferroglobe PLC since 2020 and also serves as it's Chief Executive Officer since January 13, 2020. Mr. Levi has been a Director of Schweitzer-Mauduit International, Inc., since April 20, 2017. Mr. Levi served as the President and Chief Executive Officer of Ahlstrom Oyj from June 16, 2014 to November 7, 2016. Mr. Levi has solid experience in the chemicals, plastics and specialty paper and composites industries. His record of successfully running global materials technology businesses brings a proven leadership to the Board. He served as the Principal Financial & Accounting Officer at Trinseo Finance Luxembourg S.à r.l. He served as Senior Vice President and Business President of Emulsion Polymers at Trinseo S.A. until June 2014. Mr. Levi served as Senior Vice President and President of Emulsion Polymers at Trinseo Materials Finance, Inc. until June 2014. Mr. Levi served as the senior vice president and business president of Emulsion Polymers, Styron Corporation. He served as General Manager of Emulsion Polymers and Vice President at Trinseo S.A. since June 2010. He was responsible for the global leadership of Trinseo’s Emulsion Polymers business. Previously, he served as General Manager of Emulsion Polymers of Styron (when it was a The Dow Chemical Company division) from July 2009 to June 2010. Mr. Levi served as Global Business Unit Director for Dow Elastomers and Specialty Plastics from February 2009 to July 2009, Global Business Director for Dow Elastomers from February 2008 to February 2009 and Global Business Director for Specialty Plastics at Dow from November 2006 to February 2008. In these roles, he was responsible for the Elastomers, Plastic Additives, Specialty Packaging and Films and Synthetic Rubber businesses. Prior to that, he served as Sales Director for Thermoset from March 2004 to November 2006. As the former president and chief executive officer of Ahlstrom Corporation, a global high performance fiber company, Mr. Levi understands the principles that create stockholder value and has successfully navigated many of the strategic challenges facing a publicly traded company. There, he led the Emulsion Polymers business through a successful initial public offering and was integral in overseeing core business functions including manufacturing, supply chain marketing, sales and research and development. He served as a Member of Nomination Board at Suominen Oyj. He served as President and CEO of Alhstrom-Munksjö Oyj, a global fiber Materials Company listed in Finland, where he led a successful transformation of the business by refocusing its product portfolio towards value-added specialty products. Mr. Levi received a Bachelor's Degree in Industrial Chemistry from the Università degli Studi in Milan, Italy, in 1984.

CEO Compensation
  • Insufficient data for Marco to compare compensation growth.
  • Insufficient data for Marco to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure of the Ferroglobe management team in years:

0.5
Average Tenure
  • The average tenure for the Ferroglobe management team is less than 2 years, this suggests a new team.
Management Team

Francisco Javier López Madrid

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
54

Marco Levi

TITLE
CEO & Director
AGE
60
TENURE
0.3 yrs

Beatriz García-Cos Muntañola

TITLE
Chief Financial Officer
TENURE
0.5 yrs

Benoist Ollivier

TITLE
COO & Deputy CEO
TENURE
0.5 yrs

Gaurav Mehta

TITLE
Executive Vice President of Investor Relations
TENURE
0.9 yrs

Theodore Allegaert

TITLE
Chief Legal Officer
TENURE
0.9 yrs

José Calvo-Sotelo

TITLE
Deputy CFO & Executive VP of Corporate Development
TENURE
4.3 yrs

Jeff Watson

TITLE
Executive Vice President Sales & Marketing
TENURE
0.2 yrs

Jose Maria Matesanz

TITLE
Vice President of Human Resources
TENURE
0.2 yrs

Paul Lojek

TITLE
Executive Vice President of Americas
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Ferroglobe board of directors in years:

4.3
Average Tenure
60
Average Age
  • The tenure for the Ferroglobe board of directors is about average.
Board of Directors

Francisco Javier López Madrid

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
54
TENURE
3.3 yrs

Marco Levi

TITLE
CEO & Director
AGE
60
TENURE
0.3 yrs

Donald Barger

TITLE
Independent Director
COMPENSATION
$160K
AGE
76
TENURE
4.3 yrs

Greger Hamilton

TITLE
Independent Director
COMPENSATION
$156K
AGE
52
TENURE
4.3 yrs

Jos Alapont

TITLE
Senior Independent Director
COMPENSATION
$133K
AGE
69
TENURE
1.3 yrs

Bruce Crockett

TITLE
Independent Director
COMPENSATION
$166K
AGE
75
TENURE
4.3 yrs

Stu Eizenstat

TITLE
Independent Director
COMPENSATION
$125K
AGE
76
TENURE
4.3 yrs

Juan Villar-Mir de Fuentes

TITLE
Director
COMPENSATION
$101K
AGE
57
TENURE
4.3 yrs

Manuel Garrido Y. Ruano

TITLE
Director
COMPENSATION
$121K
AGE
53
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Ferroglobe's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ferroglobe has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's Why Ferroglobe (NASDAQ:GSM) Is Weighed Down By Its Debt Load

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … We note that Ferroglobe PLC (NASDAQ:GSM) does have debt on its balance sheet. … NasdaqGS:GSM Historical Debt, August 14th 2019 How Strong Is Ferroglobe's Balance Sheet?

Simply Wall St -

Did Changing Sentiment Drive Ferroglobe's (NASDAQ:GSM) Share Price Down A Painful 81%?

So spare a thought for the long term shareholders of Ferroglobe PLC (NASDAQ:GSM); the share price is down a whopping 81% in the last three years. … See our latest analysis for Ferroglobe Given that Ferroglobe didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … So it's hard to believe the share price decline of 43% per year is due to the revenue.

Simply Wall St -

How Much is Ferroglobe PLC's (NASDAQ:GSM) CEO Getting Paid?

View our latest analysis for Ferroglobe How Does Pedro Paguaga's Compensation Compare With Similar Sized Companies? … As you can see, Pedro Paguaga is paid more than the median CEO pay at companies of a similar size, in the same market. … We compared the total CEO remuneration paid by Ferroglobe PLC, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Ferroglobe PLC (NASDAQ:GSM) Investors Should Think About This Before Buying It For Its Dividend

Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Ferroglobe paid out 47% of its profit as dividends, over the trailing twelve month period. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Unfortunately, while Ferroglobe pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Ferroglobe's Balance Sheet Risky? As Ferroglobe has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Ferroglobe, and be aware that lenders may place additional restrictions on the company as well. Remember, you can always get a snapshot of Ferroglobe's latest financial position, by checking our visualisation of its financial health. Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. This company's dividend has been unstable, and with a relatively short history, we think it's a little soon to draw strong conclusions about its long term dividend potential. During the past three-year period, the first annual payment was US$0.32 in 2016, compared to US$0.12 last year. The dividend has fallen 63% over that period. Dividend Growth Potential With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS are growing. It's not great to see that Ferroglobe's have fallen at approximately 2.6% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … With this information in mind, we think Ferroglobe may not be an ideal dividend stock.

Simply Wall St -

Are Ferroglobe PLC's (NASDAQ:GSM) Interest Costs Too High?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Ferroglobe PLC (NASDAQ:GSM), with a market cap of US$365m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Calculating The Fair Value Of Ferroglobe PLC (NASDAQ:GSM)

I will be using the Discounted Cash Flow (DCF) model. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … 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.

Simply Wall St -

Some Ferroglobe (NASDAQ:GSM) Shareholders Have Taken A Painful 79% Share Price Drop

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Ferroglobe managed to increase earnings per share from a loss to a profit, over the last 12 months. … Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit.

Simply Wall St -

Is Ferroglobe PLC's (NASDAQ:GSM) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Pedro Paguaga's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Ferroglobe PLC has a market cap of US$298m, and is paying total annual CEO compensation of US$3.1m.

Simply Wall St -

Are Ferroglobe PLC's (NASDAQ:GSM) Interest Costs Too High?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Ferroglobe PLC (NASDAQ:GSM) Has Attractive Fundamentals

Attractive stocks have exceptional fundamentals. … In the case of Ferroglobe PLC (NASDAQ:GSM), there's … financially-sound

Simply Wall St -

Company Info

Description

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. The company offers silicone chemicals used in a range of applications, including personal care items, construction-related products, health care products, and electronics, as well as silicon metal for primary and secondary aluminum producers; silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. It also provides ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal; nodularizers and inoculants, which are used in the production of iron; and silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. In addition, the company operates quartz mines in Spain, the United States, Canada, South Africa, and Mauritania; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power in Spain and France. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was founded in 2015 and is headquartered in London, the United Kingdom. Ferroglobe PLC is a subsidiary of Grupo Villar Mir, S.A.U.

Details
Name: Ferroglobe PLC
GSM
Exchange: NasdaqGS
Founded: 2015
$76,950,820
169,122,682
Website: http://www.ferroglobe.com
Address: Ferroglobe PLC
Lansdowne House,
2nd Floor,
London,
Greater London, W1J 6ER,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS GSM Ordinary Shares Nasdaq Global Select US USD 24. Dec 2015
DB 5FG Ordinary Shares Deutsche Boerse AG DE EUR 24. Dec 2015
Number of employees
Current staff
Staff numbers
4,368
Ferroglobe employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 03:58
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/02
Last earnings filing: 2020/03/03
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.