GrafTech International Ltd. Common Stock (EAF)

FairStock Score: 14/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett style investor, I start with the numbers, not the story. GrafTech makes graphite electrodes for electric-arc-furnace steel and other metals, but the filed results show a business under stress. In fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $140.2M and net loss was $46.8M, or diluted EPS -$1.76. That follows fiscal Q2 2026 net loss of $40.5M and fiscal Q1 2026 net loss of $43.3M. For FY2025, period ended 2025-12-31, revenue was $504.1M and net loss was $219.8M, or diluted EPS -$8.45. FY2024 and FY2023 were also loss-making, so this is not a one-quarter stumble. The FairStock metrics reinforce the concern: at the 2026-10-26 close of $10.65, P/E is -1.57, FCF yield is -43.1%, ROCE is -5.17%, Piotroski is 3/9, and Altman Z-score is -0.85. Negative earnings make the P/E meaningless as a cheapness signal. The Lynch category is TURNAROUND because the latest year was a loss after earlier profits, but a turnaround needs cash and a durable competitive advantage; I see neither in these figures. Revenue growth is -3.40%, and trailing free cash flow is -$123.4M. The company has history since 1886 and a necessary product, but history does not pay today's bills. I would require evidence of positive free cash flow and a much stronger balance sheet before calling this a bargain; at $10.65, the market is pricing a recovery that the filings do not yet show.

In plain English: GrafTech makes graphite electrodes used by steel and metal producers. The business looks weak because it has lost money in every recent period shown and its cash flow is negative. At $10.65 on 2026-10-26, the price does not look cheap against those numbers; there are no positive earnings to support it.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer