Graftech Stock Story


USD 6.96  0.71  9.26%   

Graftech International is scheduled to announce its earnings today. Graftech International Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 590.88 Million. The current year Earnings before Tax is expected to grow to about 478.2 M, whereas Market Capitalization is forecasted to decline to about 3 B. As many investors are getting excited about industrials space, it is fair to digest Graftech International as an investment option. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over three months ago
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Graftech International Sentiment by News Outlets

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Graftech International Historical Investor Sentiment

Investor biases related to Graftech International's public news can be used to forecast risks associated with investment in Graftech. The trend in average sentiment can be used to explain how an investor holding Graftech can time the market purely based on public headlines and social activities around Graftech International. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Graftech International's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Graftech International's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Graftech International's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Graftech International.

Graftech International Twitter Pulse

Investors have realized that leveraging social media to get the fastest information affecting stock prices isn't a theory anymore, it is a reality, and Twitter offers a platform that can outpace even the most trustworthy news aggregators. The influence of social media outlets on stock markets and stock prices of entities such as Graftech International has been proven in recent years. We extract public sentiment from Twitter posts that could be utilized to determine whether Graftech International's prices will increase or decrease.
Twitter's metrics such as likes, followers, and engagement can be good indicators of the reliance and probability of reaction to a specific tweet regarding Graftech International. Our Twitter sentiment analysis of Graftech Stock helps investors make informed decisions by leveraging the power of the community. It is a perfect supplementary tool for any beginner or an experienced trader.

Should I hold on to my Graftech (NYSE:EAF) position?

This firm has 1.14 B in debt with debt to equity (D/E) ratio of 55.3, demonstrating that Graftech International may be unable to create cash to meet all of its financial commitments. The company has a current ratio of 2.41, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist Graftech International until it has trouble settling it off, either with new capital or with free cash flow. So, Graftech International's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Graftech International sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Graftech to invest in growth at high rates of return. When we think about Graftech International's use of debt, we should always consider it together with cash and equity.
Graftech International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Graftech International, including all of Graftech International's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Graftech International assets, the company is considered highly leveraged. Understanding the composition and structure of overall Graftech International debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Graftech Total Liabilities

Graftech International liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Graftech International has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Graftech International balance sheet include debt obligations and money owed to different Graftech International vendors, workers, and loan providers. Below is the chart of Graftech short long-term liabilities accounts currently reported on its balance sheet.
You can use Graftech International financial leverage analysis tool to get a better grip on understanding its financial position

How important is Graftech International's Liquidity

Graftech International financial leverage refers to using borrowed capital as a funding source to finance Graftech International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Graftech International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Graftech International's total debt and its cash.

Breaking down Graftech International Indicators

Graftech International reported the last year's revenue of 1.32 B. Total Income to common stockholders was 371.95 M with profit before taxes, overhead, and interest of 660.5 M.

Liabilities Breakdown

Tax Liabilities
Current Liabilities
1.4 B
Long-Term Liabilities
Total Liabilities1.61 Billion
Current Liabilities243.53 Million
Long-Term Liabilities1.37 Billion
Tax Liabilities127.47 Million

Anything left for Graftech International after the dip?

Treynor Ratio just dropped to -0.15, may indicate upcoming price depreciation.
As of the 6th of May, Graftech International retains the risk adjusted performance of (0.09), and Market Risk Adjusted Performance of (0.14). Graftech International technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Graftech International, which can be compared to its competitors. Please check out Graftech International mean deviation, standard deviation, treynor ratio, as well as the relationship between the downside deviation and information ratio to decide if Graftech International is priced fairly, providing market reflects its last-minute price of 8.52 per share. Given that Graftech International has jensen alpha of (0.06), we strongly advise you to confirm Graftech International's regular market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Although many other companies in the electrical equipment & parts industry are either recovering or due for a correction, Graftech International may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Graftech International.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Graftech International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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