Ferroglobe PLC Ordinary Shares (GSM)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

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

I approach Ferroglobe as a cyclical commodity producer, not a franchise. It sells silicon metal and manganese alloys into steel, aluminum, electronics, and construction—markets where it is largely a price taker. In fiscal Q2 2026, revenue was $378.6M and net income was $60.4M, a 15.95% margin that shows the business can earn money when conditions are right. But the trailing picture is much weaker. At the 2026-10-13 close of $4.19, FairStock calculations show a negative P/E of -5.17, ROE of -5.99%, ROCE of -0.76%, and trailing free cash flow of -$12.9M, a negative 1.6% FCF yield. Debt/equity of 0.35 is manageable, but an Altman Z-Score of 1.08 signals financial stress and a Piotroski F-Score of 6/9 is only middling. At that same close, the stock trades at 1.10 times book and 17.59 times EV/EBITDA. Price-to-book near one offers some asset support, but it is not a Graham-style bargain if returns are negative and cash flow is bleeding. The FairStock Score of 29/100 reinforces that this is a low-quality setup. Growth is tied to end-market demand and commodity prices; the latest quarter is encouraging, but one good quarter does not create a durable moat. I would want evidence of sustained positive free cash flow, stronger returns on capital, and a wider margin of safety before calling this a compelling value. For now, it looks like a speculative cyclical with asset backing, not a business with a durable competitive advantage.

In plain English: Ferroglobe makes silicon metal and manganese alloys used in steel, aluminum, electronics, and construction. The latest quarter was profitable, but the company has been losing money on a trailing basis and burning cash, with weak returns. At $4.19, the price is close to the company's accounting book value, so it does not look like a clear bargain or an obviously expensive stock; overall, the numbers point to a weak, cyclical business.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

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