APMSF - Aperam: A 6.9% Dividend Yield While Waiting For A Demand Uptick
2024-07-16 10:51:23 ET
Summary
- Aperam is experiencing a downcycle, with weak Q1 results and soft Q2 guidance.
- Q1 saw lower EBITDA per tonne and a net loss, with no free cash flow generated.
- Despite challenges, Aperam remains a good counter-cyclical investment with potential for future growth.
Introduction
The stainless steel sector is quite cyclical, and I usually like to pick up shares again during a downcycle. While this means I’m sometimes too early, and I still catch a portion of the share price decline, I can be patient, waiting for the tide to turn. In a February update , I was keeping an eye on Aperam ( OTC:APEMY ) ( OTCPK:APMSF ) as the company was clearly in a downcycle and its generous dividend was no longer covered. There was no immediate expectation to see the company’s financial results pick up again, and the share price is now trading about 15% lower than in February. Q1 2024 was indeed weak and Q2 will only be marginally better, and that is definitely holding the share price back....
Aperam: A 6.9% Dividend Yield While Waiting For A Demand Uptick