Acerinox
🇪🇸 ACX.MC · Madrid · ES0132105018
Materials
EUR 12.27 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2025-12-31
Why N/A?
EPS (TTM) = -0.16 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 5.6
Based on analyst estimates
Reference: Provider P/E (Forward): 5.6
Yield (Fwd)
5.05%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.00%
Net Debt/EBITDA (TTM)
3.6x
Latest quarter: 9.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 9.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (TTM)
221.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Cash Flow Payout (TTM): 33.9%
FCF Coverage (TTM): 0.98x
ROE
-2.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
11.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Acerinox is a major global stainless steel manufacturer currently navigating a severe cyclical downturn and weak European demand. While the 5.00% yield, depressed forward P/E of 5.64, and non-cash impairments present a tempting cyclical value opportunity, the company's status as a commodity price-taker makes it a poor fit for conservative dividend portfolios. Not recommended for new positions, as the structural cyclicality outweighs the attractive valuation.
Sector Context
Acerinox is a major global manufacturer of stainless steel and high-performance alloys. As a materials company operating in a highly cyclical, pure-commodity market, it acts as a price taker, which fundamentally conflicts with conservative dividend strategies that require stable, predictable, and recurring cash flows.
Temporary Opportunity Identified
Cyclical downturn in European stainless steel demand exacerbated by a surge in cheap imports, compounded by a €48 million non-cash tax impairment and currency headwinds.
📊 Strategy Analysis
- • Forward P/E of 5.64 suggests significant undervaluation driven by temporary non-cash tax impairments and cyclical inventory adjustments
- • Operating cash flow remains strongly positive at €307.8M, providing a Cash Flow Payout ratio of 33.91% despite negative GAAP earnings
- • Current dividend yield of 5.00% offers substantial income potential for investors with a high tolerance for cyclical volatility
⚠ What to Watch
- • Operates in the highly cyclical materials sector as a pure commodity price taker, fundamentally conflicting with strategies requiring predictable cash flows
- • Net Debt/EBITDA has expanded to 3.59x, exceeding the conservative 3.0x threshold and elevating risk during a European manufacturing downturn
- • A track record of significant dividend cuts during past cyclical downturns (2016 and 2019) highlights the vulnerability of the payout to macroeconomic weakness
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.