EAF

GrafTech International Ltd

Industrial/Transportation


Presented:07/31/2018
Price:$21.20
Cap:$6.41B
Current Price:$1.44
Cap:$0.37B

Presented

Date07/31/2018
Price$21.20
Market Cap$6.41B
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S302.23M
Ave Daily Vol868,155
Short IntN/A

Current

Price$1.44
Market Cap$0.37B
GrafTech International Ltd. engages in the manufacture of graphite electrode products for the use of production of electric arc furnace steel and other ferrous and non-ferrous metals. It also produces needle coke products which is a raw material to producing graphite electrodes. The company was founded in 1886 and is headquartered in Independence, OH.

Publicly traded companies mentioned herein: Brookfield Asset Management Inc (BAM), GrafTech International Ltd (EAF)

Highlights

The presenter is long shares of GrafTech International (EAF), noting that its symbol is the acronym for Electric Arc Furnaces. The company has been restructured following an April 2018 IPO at $15 (well below the range of $21 - $23), and the stock presently trades in the low $20s. Producing steel from scrap/recycled steel as opposed to iron ore via an EAF is more environmentally friendly, and thus electric arc steelmaking has been gaining share globally. GrafTech’s main product is the graphite electrodes that are part of the furnace lid, and the process does not work without them. And, graphite electrodes cannot be made without needle coke, which is in short supply; however, GrafTech is vertically integrated, and should be the primary beneficiary of current industry trends. With the potential for earnings to rise from an estimated $2.70/share this year to $3.70/share over the next few years, and $5B of FCF to be generated over the next five years, patient shareholders could see substantial gains (the stock trades at just 8x earnings and GrafTech’s market cap is just over $6B).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.