There’s something wrong here! German Steel Stocks – Imaginary Limits

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by Jrg Lang, Euro on Sunday

The analyst sees high risks in the European steel business. Given the current circumstances, this assessment is understandable. But there is hidden substance in all three companies. And in the downgrading of each of the three stocks, an imaginary line was clearly undercut. thyssenkrupp will only With 3.54 billion euros evaluatetet. However, the balance sheet shows a net cash balance of 2.4 billion euros. The group will deliver a net profit of one billion this year. Then there is the hydrogen subsidiary Nucera, whose value will be beyond the billion mark if it goes public. And then there are the shipyards. With the additional defense spending, they now have a value well in excess of billions. This means that the steel no longer has any influence on the evaluation.

The calculation at Salzgitter is even simpler. The steel manufacturer is listed on the stock exchange 1.4 billion euros rated. A 30 percent stake in the copper processor also belongs to the group aurubis, which are around at the moment 900 million euros is worth. Heit: Investors are currently paying EUR 500 million for a steel business that will contribute pre-tax income of over EUR 1 billion this year. At Klckner & Co, the stock market value is around 743 million euros. In the first half of the year, the operating result will reach around 500 million euros. This means that there is a high probability that the stock market value will be earned back in 2022 through the operating result. The reserve that has not been taken into account lies in the digital trading platform, which could be used to process around 1.5 billion euros annually in 2022. This business alone can be worth more than the current market capitalization with the high growth rates.

Our columnist Jrg Lang has been dealing with the topic of equities since 1988.

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