Thyssenkrupp (XTRA:TKA) Valuation Check As Magnesium EV Parts Draw Growing Attention
EV driven demand for lightweight parts puts thyssenkrupp in focus
Growing interest in magnesium automotive parts, supported by the global electric vehicle boom and tighter emission rules, has put thyssenkrupp (XTRA:TKA) on many investors’ radars as automakers look for lighter, more efficient components.
See our latest analysis for thyssenkrupp.
That story around lightweight EV parts is lining up with the share price too, with thyssenkrupp’s latest €10.245 close coming after a 6.79% 1 day share price return, a 10.47% 7 day share price return and a 1 year total shareholder return of 265.02%. However, the 90 day share price return of a 22.36% decline hints that recent momentum has cooled compared with the longer term gains.
If magnesium parts and EV exposure interest you, it could be worth seeing how other auto suppliers are priced and growing through auto manufacturers.
With thyssenkrupp trading at €10.245, sitting close to analyst targets yet carrying an implied intrinsic discount, the key question is whether the magnesium and EV story is still mispriced or already fully reflected in the valuation.
Most Popular Narrative Narrative: 50% Undervalued
With thyssenkrupp’s most followed narrative pointing to a fair value of €10.30 versus a €10.245 last close, the story leans toward underappreciated earnings power and restructuring progress.
Successful restructuring actions, such as workforce reductions, consensus on collective agreements in Steel Europe, and ongoing APEX 2.0 efficiency initiatives, are expected to drive operational cost savings, aiding both net margin expansion and positive cash flow even in soft demand environments.
Curious what kind of revenue path, margin rebuild and future P/E this narrative relies on? The full story ties these moving parts into one valuation call.
Result: Fair Value of $10.30 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, weaker demand across core segments and the heavy lifting still required on restructuring could easily derail the earnings and valuation story that investors are watching.
Find out about the key risks to this thyssenkrupp narrative.
Build Your Own thyssenkrupp Narrative
If you are not fully on board with this view, or prefer to work from your own assumptions and data, you can quickly build a version that fits your thesis with Do it your way.
A great starting point for your thyssenkrupp research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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