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GrafTech International (EAF)

GrafTech International Ltd. is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals.

Company profile

Ticker
EAF
Exchange
CEO
David Rintoul
Employees
Incorporated
Location
Fiscal year end
Former names
UCAR INTERNATIONAL INC
SEC CIK
Subsidiaries
GrafTech Advanced Graphite Materials LLC • GrafTech Brasil Participações Ltda. • GrafTech Canada ULC • Graftech Comercial de México, S. de R.L. de C.V. • GrafTech Comercial Navarra, S.L. • GrafTech DE LLC • GrafTech Finance Inc. • GrafTech France S.A.S. • GrafTech Germany GmbH • GrafTech Global Enterprises Inc. ...
IRS number
61385548

EAF stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

5 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 55.84M 55.84M 55.84M 55.84M 55.84M 55.84M
Cash burn (monthly) 9.74M 4.86M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 14.19M 7.08M n/a n/a n/a n/a
Cash remaining 41.65M 48.76M n/a n/a n/a n/a
Runway (months of cash) 4.3 10.0 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 22 Marcel Kessler RSU Common Stock Grant Acquire A No No 0 61,874 0 61,874
1 Jul 22 Marcel Kessler Employee Stock Option Common Stock Grant Acquire A No No 7.21 61,874 446.11K 61,874
30 Jun 22 Clegg Catherine L. Deferred Share Units Common Stock Grant Acquire A No No 0 5,834.512 0 49,242.078
30 Jun 22 Clegg Catherine L. Deferred Share Units Common Stock Grant Acquire A No No 0 61.31 0 43,407.566
30 Jun 22 Keizer Henry R. Deferred Share Units Common Stock Grant Acquire A No No 0 2,917.256 0 6,637.562
30 Jun 22 Keizer Henry R. Deferred Share Units Common Stock Grant Acquire A No No 0 5.255 0 3,720.306
30 Jun 22 Rintoul David J. Deferred Share Units Common Stock Grant Acquire A No No 0 30.864 0 21,851.598
13F holders Current Prev Q Change
Total holders 250 261 -4.2%
Opened positions 38 47 -19.1%
Closed positions 49 26 +88.5%
Increased positions 92 88 +4.5%
Reduced positions 87 85 +2.4%
13F shares Current Prev Q Change
Total value 2.97B 3.68B -19.3%
Total shares 294.15M 311.08M -5.4%
Total puts 167.4K 132.6K +26.2%
Total calls 269.9K 635.1K -57.5%
Total put/call ratio 0.6 0.2 +197.1%
Largest owners Shares Value Change
BCP GP 63.97M $756.82M 0.0%
BAM Brookfield Asset Management 63.83M $614.03M 0.0%
Vanguard 23.93M $230.16M +5.5%
FMR 20.98M $201.84M +105.4%
BLK Blackrock 12.36M $118.91M -2.5%
Grantham, Mayo, Van Otterloo & Co. 7.35M $70.68M +20.7%
BK Bank Of New York Mellon 5.94M $57.17M -8.9%
Yacktman Asset Management 5.16M $49.64M +0.4%
River Road Asset Management 4.91M $47.27M -35.8%
STT State Street 3.95M $38.02M +2.2%
Largest transactions Shares Bought/sold Change
FMR 20.98M +10.77M +105.4%
Norges Bank 0 -8.29M EXIT
JHG Janus Henderson 35.44K -7.38M -99.5%
New York State Common Retirement Fund 1.42M -4.06M -74.1%
River Road Asset Management 4.91M -2.74M -35.8%
Torq Capital Management 2.13M +2.13M NEW
Victory Capital Management 60.44K -1.95M -97.0%
Arrowstreet Capital, Limited Partnership 76.33K -1.48M -95.1%
Balyasny Asset Management 383.84K -1.41M -78.6%
BNP Paribas Asset Management Holding 0 -1.32M EXIT

Financial report summary

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Risks
  • The COVID-19 pandemic has had, and is expected to continue to have, an adverse impact on our business, results of operations, financial position and cash flows.
  • We may be unable to implement our business strategies, including our initiative to secure and maintain LTAs, in an effective manner.
  • Global graphite electrode overcapacity has adversely affected graphite electrode prices in the past, and may adversely affect them again, which could negatively impact our sales, margins and profitability.
  • Pricing for graphite electrodes has historically been cyclical and the price of graphite electrodes may decline in the future.
  • We are dependent on the global steel industry generally and the EAF steel industry in particular, which historically have been highly cyclical, and a downturn in these industries may materially adversely affect our business.
  • The graphite industry is highly competitive. Our market share, net sales or net income could decline due to vigorous price and other competition.
  • We are dependent on the supply of petroleum needle coke. Our results of operations could deteriorate if recent disruptions in the supply of petroleum needle coke continue or worsen for an extended period.
  • We are dependent on supplies of raw materials (in addition to petroleum needle coke) and energy. Our results of operations could deteriorate if those supplies increase in cost or are substantially disrupted for an extended period.
  • Our operations are subject to hazards which could result in significant liability to us.
  • We are subject to a variety of legal, economic, social and political risks associated with our substantial operations in multiple countries, which could have a material adverse effect on our financial and business operations.
  • Our results of operations could deteriorate if our manufacturing operations were substantially disrupted for an extended period for any reason, including equipment failure, climate change, natural disasters, public health crises, political crises or other catastrophic events.
  • Plant operational improvements may be delayed or may not achieve the expected benefits.
  • We depend on third parties for certain construction, maintenance, engineering, transportation, warehousing and logistics services.
  • We may be subject to information technology systems failures, cybersecurity attacks, network disruptions and breaches of data security, which could compromise our information and expose us to liability.
  • If we are unable to successfully negotiate with the representatives of our employees, including labor unions, we may experience strikes and work stoppages.
  • We have significant goodwill on our balance sheet that is sensitive to changes in the market, which could result in impairment charges.
  • Our ability to grow and compete effectively depends on protecting our intellectual property. Failure to protect our intellectual property could adversely affect our business.
  • Third parties may claim that our products or processes infringe their intellectual property rights, which may cause us to pay unexpected litigation costs or damages or prevent us from selling our products or services.
  • Our indebtedness could limit our financial and operating activities and adversely affect our ability to incur additional debt to fund future needs and our ability to fulfill our obligations under our existing and future indebtedness.
  • The 2018 Credit Agreement and the indenture governing the 2020 Senior Secured Notes include covenants that could restrict or limit our financial and business operations.
  • We are required to make payments under a Tax Receivable Agreement for certain tax benefits we may claim in the future, and the amounts we may pay could be significant.
  • Stringent health, safety and environmental regulations applicable to our manufacturing operations and facilities could result in substantial costs related to compliance, sanctions or material liabilities and may affect the availability of raw materials.
  • Global data and privacy protection laws applicable to us require substantial costs related to compliance, and any failure to comply could result in significant liability to us, including fines and penalties.
  • If the ownership of our common stock continues to be highly concentrated, it may prevent minority stockholders from influencing significant corporate decisions and may result in conflicts of interest.
  • Our largest stockholder, Brookfield, whose representatives serve on our Board of Directors, has the right to engage or invest in the same or similar businesses as us.
  • Certain provisions, including in our Amended Certificate of Incorporation and our Amended By-Laws, could hinder, delay or prevent a change in control, which could adversely affect the price of our common stock.
  • Our Amended Certificate of Incorporation provides that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
  • The market price of our common stock could be negatively affected by sales of substantial amounts of our common stock in the public markets.
  • We cannot guarantee that our stock repurchase program will be fully consummated or that it will enhance long-term stockholder value. Stock repurchases could also increase the volatility of the trading price of our stock and will diminish our cash reserves.
  • We may not pay cash dividends on our common stock.
Management Discussion
  • The tables presented in our period-over-period comparisons summarize our Condensed Consolidated Statements of Operations and illustrate key financial indicators used to assess the consolidated financial results. Throughout this "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Report ("MD&A"), insignificant changes may be deemed not meaningful and are generally excluded from the discussion.
  • N.M. = Not Meaningful.
  • Net sales. Net sales of $363.6 million in the second quarter of 2022 increased $32.9 million, or 10%, compared to the second quarter of 2021, reflecting improved pricing on volume derived from non-LTA sales, partially offset by a shift in the mix of our business to non-LTAs from LTAs. Prices for non-LTA business reset on January 1, 2022 and our weighted-average realized price increased 46% compared to the weighted-average realized price for the second quarter of 2021.

Content analysis

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