GrafTech International Ltd. (NYSE:EAF) has a 12-month trailing P/E ratio of 8.50. The stock’s Relative Strength Index (RSI) is 49.47, with weekly volatility at 2.45% and ATR at 0.49. The EAF stock’s 52-week price range has touched low of $5.87 and a $14.16 high. Its shares traded higher over the last trading session, gaining 0.46% on 06/04/21. The shares fell to a low of $12.765 before closing at $13.05. Intraday shares traded counted 2.71 million, which was 13.76% higher than its 30-day average trading volume of 3.14M. EAF’s previous close was $12.99 while the outstanding shares total 267.32M.
Investors have identified the Electrical Equipment & Parts company GrafTech International Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.47 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
GrafTech International Ltd. (EAF) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EAF, the company has in raw cash 96.45 million on their books with 0.13 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 583.73 million total, with 203.52 million as their total liabilities.
EAF were able to record 108.25 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -49.0 million. In cash movements, the company had a total of 122.42 million as operating cash flow.
Potential earnings growth for GrafTech International Ltd. (EAF)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, GrafTech International Ltd. recorded a total of 304.4 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.68% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -11.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 146.4 million trying to sell their products during the last quarter, with the result yielding a gross income of 158.0 million. This allows shareholders to hold on to 267.32M with the recently reported earning now reading 0.37 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.37 cents a share).
Is the stock of EAF attractive?
In related news, Director, BCP GP Ltd sold 20,000,000 shares of the company’s stock in a transaction that recorded on May 24. The sale was performed at an average price of 13.31, for a total value of 266,200,000. As the sale deal closes, the Director, BCP GP Ltd now sold 20,000,000 shares of the company’s stock, valued at 266,200,000. Also, Director, BCP GP Ltd sold 12,800,000 shares of the company’s stock in a deal that was recorded on May 13. The shares were price at an average price of 13.02 per share, with a total market value of 166,656,000. Following this completion of acquisition, the Director, BCP GP Ltd now holds 12,800,000 shares of the company’s stock, valued at 166,656,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.03%.
3 out of 4 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on GrafTech International Ltd.. 0 analysts has assigned a Sell rating on the EAF stock. The 12-month mean consensus price target for the company’s shares has been set at $14.00.