5. Ferroglobe PLC (NASDAQ:GSM)
Revenue growth past 5 years: 7.10%
Number of hedge fund holders: 26
Prominent global producer of silicon metal and silicon- and manganese-based specialty alloys, Ferroglobe PLC (NASDAQ:GSM), caters to diverse crucial industries such as solar energy, electronics, automotive, and construction. The company has a significant presence in the metallurgical sector. It has established itself as a leading supplier in the Western world with operations spanning across North America, Europe, and South America, through 25 production facilities.
Ferroglobe PLC (NASDAQ:GSM) reported a 4% decline in revenue, totaling $434 million for Q3 2024, due to lower volumes across all segments. Despite slowed revenues, Ferroglobe had an accrual ratio of -0.17 in 2024. This reflects that it has a strong, good cash conversion and that the earnings understate its free cash flow. The company had a free cash flow of $164 million in 2024, significantly more than the statutory profit of $5.24 million. This free cash flow improvement over the 12 months is attractive to shareholders. Forecasts predict the strong earning potential of the Ferroglobe PLC (NASDAQ:GSM) stock.
The stock price has grown 296% higher over five years. During this time, Ferroglobe PLC (NASDAQ:GSM) became profitable, which often marks a major turnaround point that indicates quick earning growth in the future. The company currently reflects a trailing twelve-month revenue of $1.64 billion and a net income of $5.24 million. Despite a difficult year, these figures underscore Ferroglobe’s potential for revenue growth. The company’s growth can be significantly fuelled by strategic expansions and favorable trade measures in the U.S. market. A trailing P/E of 114.67 suggests the stock is highly valued relative to its past earnings, which can be due to the expectation of further growth.
