voestalpine VOE.VI
What does voestalpine do?
voestalpine is an Austrian steel and technology group headquartered in Linz. The group processes, develops, and manufactures steel and technology products and is divided into five divisions: Steel, High Performance Metals, Metal Engineering, Metal Forming, and Holding & Group Services. The Steel segment supplies hot-rolled, cold-rolled, and coated flat steel, heavy plate, and cast products, among other things for automotive, household appliance, and energy applications.
The other segments are more focused on specialty products. High Performance Metals produces tool steels, high-speed steels, and specialty alloys for aerospace, the oil and gas industry, and energy technology. Metal Engineering focuses on rails, switches, wire, and special sections for rail infrastructure and industry. Metal Forming manufactures precision sections and formed components, mainly for the automotive industry. In terms of competition, the company sets itself apart from pure bulk steel producers through its high share of demanding specialty products and its proximity to industrial customers, but it remains exposed to the cycles of the steel industry.
Score profile
Rank vs. Basic Materials (88 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, voestalpine ranks below average in the group Basic Materials (3.6/10). On growth, the company ranks in the middle in the group Basic Materials (5.2/10). On valuation (higher = cheaper), the stock ranks above average in the group Basic Materials (6.8/10). On financial strength, voestalpine ranks in the middle in the group Basic Materials (5.6/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 8.2x | 15.2x | better than 88 % |
| Trailing P/E | 14.0x | 22.9x | better than 80 % |
| PEG ratio | 5.9x | 1.8x | better than 6 % |
| EV/EBITDA | 5.6x | 10.7x | better than 93 % |
| Price/sales | 0.5x | 1.3x | better than 86 % |
| Price/book | 0.9x | 2.0x | better than 95 % |
| Revenue growth | 2.4% | 9.3% | better than 19 % |
| Earnings growth | 89.7% | 0.0% | better than 86 % |
| Gross margin | 20.5% | 26.0% | better than 35 % |
| Operating margin | 7.6% | 11.7% | better than 28 % |
| Net margin | 3.4% | 4.9% | better than 38 % |
| Return on equity | 6.6% | 8.3% | better than 41 % |
| Debt/equity | 25.4% | 56.4% | better than 71 % |
| Current ratio | 1.4x | 2.1x | better than 15 % |
| Free cash flow yield | 7.3% | 3.1% | better than 81 % |
| Dividend yield | 1.8% | 1.6% | – |
| Payout ratio | 20.3% | 34.5% | – |
| Beta | 1.82 | 1.03 | – |
Valuation: what is voestalpine worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give voestalpine a model range of 25.87 EUR to 86.00 EUR per share.
10 analysts, average rating “Buy”, average price target 54.41 EUR (+30.9%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand from the automotive industry and mechanical engineering largely determines capacity utilization and sales of flat steel and forming products.
- The share of high-margin specialty materials and rail infrastructure products stabilizes earnings compared with standard steel alone.
- Raw material costs for iron ore, coking coal, and energy as well as price developments in the steel market shape profitability.
Risks
- The cyclical dependence of customer industries, in particular automotive and construction, leads to strongly fluctuating capacity utilization and earnings.
- The decarbonization of steel production requires high investment, and CO2 costs as well as regulatory requirements weigh on the cost structure.
- Import pressure from third countries and trade restrictions can affect prices and competitive position in the European market.
What to look for with voestalpine
The operating margin (EBITDA margin) shows how well the group can absorb price fluctuations and raw material costs in a capital-intensive, cyclical business.