| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.61 | -31 |
| Intrinsic value (DCF) | 8.90 | -78 |
| Graham-Dodd Method | 6.06 | -85 |
| Graham Formula | 0.50 | -99 |
Voestalpine AG (VAS.DE) is a leading Austrian steel and technology group headquartered in Linz, Austria, with a workforce of over 51,000 employees. The company operates across four key divisions: Steel, Special Steel, Metal Engineering, and Metal Forming, catering to industries such as automotive, construction, and white goods. Voestalpine specializes in high-quality steel products, including flat steel, long steel, rails, and precision components, positioning itself as a critical supplier to Europe's industrial base. With a revenue of €16.68 billion (FY 2024), the company combines traditional steel production with advanced metal processing solutions, reinforcing its role in the global basic materials sector. Voestalpine's diversified product portfolio and strong R&D focus make it a key player in sustainable steel solutions, aligning with Europe's green industrial transition.
Voestalpine presents a mixed investment case. On the positive side, its diversified industrial exposure (automotive, construction, infrastructure) and strong European market position provide stability. The company generated €1.45 billion in operating cash flow (FY 2024) and maintains a reasonable dividend yield (€0.70 per share). However, its high beta (1.485) reflects sensitivity to cyclical demand, while net margins remain thin (€100.8 million net income on €16.68 billion revenue). Debt levels (€3.06 billion gross debt against €1.32 billion cash) and capex intensity (€1.08 billion) may constrain flexibility during downturns. Investors should weigh its industrial diversification against exposure to energy-intensive steel production costs in Europe.
Voestalpine competes in the premium segment of steel production, differentiating itself through technological specialization in high-value products like automotive components and railway infrastructure. Its Steel Division benefits from integrated production in Austria, ensuring quality control for automotive clients, while its Metal Engineering Division holds a near-monopoly in European rail production. The company's vertical integration—from raw steel to precision components—provides cost advantages in niche markets. However, it faces pressure from larger global steelmakers on price competitiveness in commoditized products. Voestalpine's R&D focus on lightweight automotive steels and sustainable production methods (e.g., hydrogen-based steelmaking) positions it well for EU decarbonization trends, but reliance on European energy markets remains a cost disadvantage versus competitors in lower-cost regions. Its ~€3.9 billion market cap is mid-sized globally, limiting scale advantages against giants like ArcelorMittal.