The following segment was excerpted from this fund letter published by Massif Capital.
GrafTech (EAF) (Long): On a rolling twelve-month basis, EAF is trading at 4x earnings, has a 22.4% free cash flow yield, and has returned 51% on its invested capital. The recent weakness in the equity price is very much at odds with the operational success and financial results of the firm. Not only is 70% of their graphite electrode capacity sold at ~$10,000 per ton on long-term contracts through 2022, but management has continued to secure high prices (~$10,000 a ton)