ThyssenKrupp AG, an industrial group based in Essen specializing in the processing of recyclable materials, has recorded an increase since the end of 2021. Since the end of December, the share has risen from €8.90 to €10.60, an increase of almost 20%. The stock had been in a steady downtrend since 2018, which it did not break until November 2021 and then turned into support for the current rise. The share price already reached a high of €11.35 at the end of November.
The company, which is mainly known for its steel production, has also suffered from the Corona pandemic in recent years, which is reflected in the share price performance. While fears of the omicron variant are now subsiding, the share price could recover. In the past fiscal year ThyssenKrupp reported a loss of 115 million euros, while sales came to 34.0 billion euros. The Group plans to present new financial figures on February 4, 2022.
thyssenkrupp’s range of products and services, which extends from flat steel to trading in materials and raw materials to passenger transportation systems, has another significant division. Uhde Chlorine Engineers, the Group’s subsidiary, specializes in hydrogen and plans to go public later this year. The subsidiary has already secured an order to build a 200-megawatt plant for the production of green hydrogen from standard modules from the Shell energy group.
Given the hope of strong annual earnings and because of a possible undervaluation of the stock with a low price-earnings ratio, some very well-known banks have placed their price targets between 20-60% above the current price. The Group is valued below cash, and the hydrogen business alone could cover a large part of the market capitalization in the event of a spin-off. This makes the share very interesting, especially in the long term.
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