Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a comprehensive analysis of Ampco-Pittsburgh Corporation's (AP) financial standing? Did you know that in Q4 2024, the company reported earnings per share of $0.16 and a full-year EPS of just $0.02? While the Air and Liquid Processing segment saw record sales with an 11% year-over-year increase, consolidated net sales for Q4 2024 actually declined by 6.6%. Want to understand how these figures, along with a $379 million backlog, impact the overall financial health and future prospects of Ampco-Pittsburgh? Read on to discover key insights that can help you make informed investment decisions.

Ampco-Pittsburgh Corporation (AP) Revenue Analysis

Understanding Ampco-Pittsburgh Corporation's (AP) revenue streams is crucial for investors seeking to assess the company's financial health and future prospects. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights into the company's operational performance.

Breakdown of Primary Revenue Sources:

Ampco-Pittsburgh Corporation operates primarily through two business segments:

• Forged and Cast Engineered Products (FCEP): This segment focuses on producing custom engineered open-die forged products and cast rolls.
• Air and Liquid Systems (ALS): This segment provides custom-engineered finned tube heat exchange coils, fans, and related air handling equipment.

Year-over-Year Revenue Growth Rate:

Analyzing historical revenue trends reveals the company's ability to grow its sales over time. Investors should pay close attention to the percentage increase or decrease in revenue from year to year, as this indicates the company's growth trajectory and market position. For example, Ampco-Pittsburgh's net sales for the year 2023 were $428.2 million, compared to $391.6 million in 2022, representing an increase of 9.3%. This growth was primarily driven by increased sales in the Forged and Cast Engineered Products segment.

Contribution of Different Business Segments to Overall Revenue:

Understanding the contribution of each business segment to the overall revenue pie helps investors identify the company's key revenue drivers. For example, in 2023, the Forged and Cast Engineered Products segment accounted for a significant portion of Ampco-Pittsburgh's total revenue. Specifically, in 2023 FCEP segment sales were $287.7 million, an increase of 16.4%, or $40.5 million, compared to $247.2 million in 2022. The Air and Liquid Systems segment sales were $140.5 million in 2023, an increase of 5.7%, or $7.5 million, compared to $133.0 million in 2022.

Analysis of Significant Changes in Revenue Streams:

Monitoring any significant changes in revenue streams is crucial for understanding the company's strategic direction and potential risks. This includes identifying new revenue sources, shifts in customer demand, or the impact of external factors such as economic conditions or regulatory changes. For instance, the increase in FCEP sales in 2023 was primarily due to higher demand and increased production levels in key markets.

The following table summarizes Ampco-Pittsburgh Corporation's revenue by segment for 2023 and 2022:

For a deeper dive into investor profiles and stock performance, consider exploring: Exploring Ampco-Pittsburgh Corporation (AP) Investor Profile: Who’s Buying and Why?

Ampco-Pittsburgh Corporation (AP) Profitability Metrics

Analyzing Ampco-Pittsburgh Corporation's profitability involves examining several key metrics. These metrics provide insights into the company's efficiency in generating profits from its revenue and assets.

Here's a breakdown of Ampco-Pittsburgh Corporation's profitability:

• Gross Profit: For the year 2024, Ampco-Pittsburgh reported a gross profit of $81.5 million.
• Operating Income: The company's income from operations for the full year 2024 was $12.2 million, which includes a $4.1 million non-cash asbestos-related revaluation benefit recorded in Q4 2024.
• Net Income: Net income attributable to Ampco-Pittsburgh for the year ended December 31, 2024, was $0.4 million, or $0.02 per common share. This includes an after-tax impact of the credit for asbestos-related costs of $0.20 per share.

To provide a clearer picture, here's a table summarizing these figures:

When evaluating profitability, it's essential to consider these figures in the context of the company's sales. For 2024, net sales were reported at $418.3 million, a slight decrease from $422.3 million in 2023.

Here's an overview of Ampco-Pittsburgh's profitability trends over time:

• Gross Profit Margin: Ampco-Pittsburgh's gross profit margin for the trailing twelve months is 19.48%.
• Operating Margin: The operating margin is 3.06% for the trailing twelve months.
• Pretax Margin: The pretax margin is 1.21% for the same period.
• Net Profit Margin: The net profit margin stands at 0.1%.

A comparison of profitability ratios with industry averages provides valuable context. However, industry-specific data wasn't available in the search results. Generally, these ratios are compared against industry peers to determine relative performance.

Ampco-Pittsburgh's operational efficiency can be gleaned from its cost management and gross margin trends. The company's gross profit for 2024 was $81.5 million, with a gross profit margin of 19.48%. Cost of revenue was $336.8 million. The company has focused on pricing actions and manufacturing efficiency. Forged and Cast Engineered Products segment delivered 38% higher operating income than a year ago due to pricing actions and manufacturing efficiency and absorption improvements.

For additional insights into Ampco-Pittsburgh's values, see: Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).

Ampco-Pittsburgh Corporation (AP) Debt vs. Equity Structure

Understanding how Ampco-Pittsburgh Corporation (AP) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities to determine its financial stability and risk profile. A balanced approach to debt and equity funding is often indicative of sound financial management.

As of the fiscal year 2024, Ampco-Pittsburgh Corporation's debt structure includes both short-term and long-term obligations. While specific figures for 2024 are not available, examining the recent trends and financial statements can provide insights. Investors should look for details on:

• Total Debt: The aggregate amount of short-term and long-term debt.
• Short-Term Debt: Obligations due within one year.
• Long-Term Debt: Obligations due beyond one year.

The debt-to-equity ratio is a key metric for assessing Ampco-Pittsburgh Corporation's financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. The formula for calculating the debt-to-equity ratio is: Total Liabilities / Shareholder Equity. A higher ratio suggests that the company relies more on debt, which can increase financial risk. It's important to compare Ampco-Pittsburgh Corporation's debt-to-equity ratio with industry averages to gauge whether it's within a reasonable range. Industry standards vary, but a ratio significantly above 1.0 might warrant closer scrutiny. Keep in mind that acceptable levels depend heavily on the specific industry and its typical capital structure.

Recent activities like debt issuances, credit ratings, or refinancing provide insights into Ampco-Pittsburgh Corporation's financial strategy and creditworthiness. Any upgrades or downgrades in credit ratings can significantly impact investor confidence and borrowing costs. For instance, if Ampco-Pittsburgh successfully refinanced a substantial portion of its debt at a lower interest rate, it could improve its profitability and cash flow. Conversely, a debt issuance at unfavorable terms might indicate financial stress.

Balancing debt and equity is a strategic decision for Ampco-Pittsburgh Corporation. While debt can provide leverage and potentially increase returns on equity, it also introduces financial risk. Equity financing, on the other hand, reduces financial risk but may dilute existing shareholders' ownership. The optimal mix depends on various factors, including the company's growth prospects, profitability, and risk tolerance. Monitoring how Ampco-Pittsburgh Corporation manages this balance is essential for assessing its long-term financial health.

Here's a hypothetical example of how Ampco-Pittsburgh Corporation might manage its debt and equity:

For more insights into Ampco-Pittsburgh Corporation's values and strategic direction, consider exploring: Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).

Ampco-Pittsburgh Corporation (AP) Liquidity and Solvency

Assessing Ampco-Pittsburgh Corporation's financial health involves a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. Understanding these aspects is crucial for investors to gauge the company's financial stability and risk profile. Here's a breakdown of key liquidity measures and trends for Ampco-Pittsburgh Corporation (AP):

Liquidity Ratios:

• Current Ratio: As of December 2024, the current ratio stands at 1.89. This ratio, which measures a company's ability to pay short-term obligations with its current assets, has slightly decreased from 2.02 in December 2023. A current ratio above 1 generally indicates good liquidity.
• Quick Ratio: The quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, is 0.96 as of December 2024, the same as in December 2023.
• Cash Ratio: The cash ratio, which is the most conservative liquidity ratio, is 0.12 as of December 2024, an increase from 0.06 in December 2023.

Working Capital Trends:

Working capital, which is the difference between a company's current assets and current liabilities, is a key indicator of short-term financial health. Ampco-Pittsburgh's working capital as of December 31, 2024, was $111.571 million, compared to $119.768 million as of December 31, 2023. This decrease suggests a tightening of short-term liquidity, which could be a point of concern if the trend continues.

Cash Flow Statements Overview:

An analysis of Ampco-Pittsburgh's cash flow statements provides insights into the company's ability to generate cash from its operations, investments, and financing activities.

• Operating Cash Flow: For the year ended December 31, 2024, net cash flows provided by operating activities were $18.0 million, a significant improvement of $21.7 million compared to the $(3.686) million for the year ended December 31, 2023. This improvement was primarily due to lower investment in trade working capital and lower net outflows for asbestos litigation, although partly offset by higher contributions to employee benefit plans.
• Investing Cash Flow: Net cash flows used in investing activities for 2024 were $(8.245) million, versus $(19.685) million in 2023.
• Financing Cash Flow: Net cash flows used in financing activities for 2024 were $(1.353) million, versus cash flows provided by financing activities of $21.688 million in 2023.

Potential Liquidity Concerns or Strengths:

While Ampco-Pittsburgh's current and quick ratios suggest a reasonable liquidity position, the decrease in working capital and the fluctuations in cash flows warrant attention. The improved operating cash flow in 2024 is a positive sign, driven by better working capital management and reduced asbestos-related outflows. However, investors should monitor these trends to ensure the company maintains sufficient liquidity to meet its obligations and fund its operations. The company is exploring expansion opportunities and focusing on working capital management and debt reduction which may support long-term growth.

Here is a summary of Ampco-Pittsburgh's liquidity ratios for the past five years:

Understanding a company's mission, vision, and core values can also provide context for its financial strategies and long-term goals. For more insights, consider exploring Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).

Ampco-Pittsburgh Corporation (AP) Valuation Analysis

Assessing whether Ampco-Pittsburgh Corporation (AP) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. This analysis helps investors gauge the company's intrinsic value relative to its current market price.

Several key financial ratios are crucial in determining valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation relative to its peers.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market capitalization of a company against its book value of equity. A P/B ratio below 1.0 could imply that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a clearer picture of valuation, especially when comparing companies with different capital structures.

Analyzing Ampco-Pittsburgh Corporation's stock price trends over the past year provides context on market sentiment and performance:

• Over the last 12 months, Ampco-Pittsburgh Corporation (AP) has experienced fluctuations in its stock price, reflecting broader market trends and company-specific developments. As of April 18, 2025, the stock traded at $9.01.
• The stock's 52-week range has been between $6.77 and $10.40, indicating significant volatility and potential trading opportunities.

Dividend yield and payout ratios are essential for income-focused investors. As of now, information regarding Ampco-Pittsburgh Corporation's dividend yield and payout ratios is not readily available, suggesting that the company may not currently offer dividends.

Analyst consensus on Ampco-Pittsburgh Corporation's stock valuation offers insights into professional opinions:

• Currently, available data on analyst ratings for Ampco-Pittsburgh Corporation (AP) is limited. Investors should seek updated analyst reports for current recommendations (buy, hold, or sell) to better inform their investment decisions.

To summarize, a comprehensive valuation analysis involves examining a combination of financial ratios, stock price trends, and analyst opinions to determine whether Ampco-Pittsburgh Corporation is fairly valued by the market. Investors should consider these factors alongside their own research and investment goals. For more insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).

Ampco-Pittsburgh Corporation (AP) Risk Factors

Assessing the financial health of Ampco-Pittsburgh Corporation (AP) requires a close examination of the various risks it faces, both internal and external. These risks can significantly impact the company's performance and stability.

Here's an overview of key risks:

• Industry Competition: Ampco-Pittsburgh Corporation operates in highly competitive markets. Competition could affect the business, financial condition, or results of operations.
• Regulatory Changes: Changes in regulations, including environmental laws and trade policies, can pose risks. Compliance with evolving regulations may increase costs and affect profitability.
• Market Conditions: Economic downturns, fluctuations in raw material prices, and changes in customer demand can all impact Ampco-Pittsburgh's financial performance. Unfavorable market conditions may reduce sales and profitability.

Operational, financial, and strategic risks are often detailed in the company's filings. These risks can include:

• Operational Risks: Disruptions in production, supply chain issues, or equipment failures can negatively affect operations. Maintaining efficient and reliable operations is crucial for financial stability.
• Financial Risks: Fluctuations in interest rates, currency exchange rates, and credit market conditions can impact financial performance. Prudent financial risk management is essential.
• Strategic Risks: Risks associated with strategic decisions, such as acquisitions, divestitures, or new market entries, can impact long-term performance. Careful strategic planning and execution are necessary.

Mitigation strategies and plans are crucial for managing these risks. While specific details may vary, common strategies include:

• Diversification: Diversifying products, services, and markets can reduce the impact of adverse events in any single area. A diversified approach enhances resilience.
• Risk Management Programs: Implementing comprehensive risk management programs can help identify, assess, and mitigate risks. These programs often include insurance coverage and contingency plans.
• Compliance Programs: Maintaining robust compliance programs ensures adherence to regulations and reduces the risk of penalties or legal issues. Compliance is essential for maintaining a positive reputation and avoiding disruptions.

Ampco-Pittsburgh Corporation's ability to navigate these risks effectively is vital for sustaining its financial health and delivering value to investors. Regular monitoring and proactive management of risks are essential components of sound financial stewardship.

More insights about Ampco-Pittsburgh Corporation can be found here: Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).

Ampco-Pittsburgh Corporation (AP) Growth Opportunities

Ampco-Pittsburgh Corporation's future growth hinges on several factors, including strategic initiatives, market dynamics, and competitive positioning. An analysis of these elements provides insight into the company's potential trajectory.

Key growth drivers for Ampco-Pittsburgh include:

• Product Innovations: Continued investment in research and development to introduce new and improved products, catering to evolving customer needs and industry standards.
• Market Expansions: Exploring opportunities to expand into new geographic markets or industries, leveraging existing expertise and resources to diversify revenue streams.
• Acquisitions: Pursuing strategic acquisitions to complement existing capabilities, expand market share, or gain access to new technologies.

Future revenue growth projections and earnings estimates for Ampco-Pittsburgh will depend on several variables. Keep in mind that these are subject to change based on economic conditions and company-specific developments. Investors should consult with financial professionals and refer to the company's official financial reports for the most up-to-date information.

Strategic initiatives and partnerships that could drive future growth include:

• Technological Upgrades: Implementing advanced manufacturing technologies to improve efficiency, reduce costs, and enhance product quality.
• Strategic Alliances: Forming partnerships with other companies to expand market reach, access new technologies, or develop innovative solutions.

Ampco-Pittsburgh's competitive advantages that position it for growth include:

• Established Market Presence: A long-standing presence in key markets provides a solid foundation for future expansion.
• Strong Customer Relationships: Maintaining close relationships with key customers ensures a steady stream of business and provides valuable insights into market needs.
• Skilled Workforce: A skilled and experienced workforce is essential for maintaining product quality, driving innovation, and meeting customer demands.

Here is a SWOT analysis that can provide a framework for evaluating Ampco-Pittsburgh's strategic position. The elements in this table are examples and not exhaustive. A complete SWOT analysis would require more detailed company-specific and market data.

For additional insights into the company's values and strategic direction, explore: Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).