SSAAF - SSAB: Swedish Steel At An Acceptable Valuation

2024-04-02 10:30:00 ET

Summary

• SSAB's share price has increased by about 200% since the summer of 2020, while paying out about 50% in dividends.
• The company reported a decrease in revenue in 2023 but saw a significant increase in gross profit due to lower COGS as the 2022 results included an impairment charge.
• Analyst consensus estimates for 2024 suggest a weaker performance, but SSAB remains an attractive investment with a low valuation and strong cash position.

Introduction

As it has been a year since I last reviewed SSAB ( SSAAF ) ( SSAAY ) here on Seeking Alpha, I wanted to check up on the company's performance as the share price has been pretty volatile in the past year. The share price is still up by about 200% since my initial article that was published in August 2020 [paywalled] so the total performance is still pretty good, especially as the company paid a cumulative 13.95 SEK per share in dividends since the summer of 2020 which already represents over half the share price at that time....

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