AMG

Analysis of AMG share price

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If you are one of the investors who are closely interested in the AMG Group share, we suggest that you discover, through this article entirely dedicated to this stock, all the information you will need to make relevant analyses of this stock. In order to help you anticipate future changes in this stock, we will explain how to perform a fundamental analysis of this stock, what the company's main activities are, who its main opponents are on the market and with which companies it has recently formed strategic partnerships.

Elements that can influence the price of this asset:

Analysis N°1

First of all, the aerospace industry, on which the majority of the AMG Group's business depends, will be closely monitored. Indeed, the more aircraft orders are received, the more AMG will fill its own order book.

Analysis N°2

The tourism sector, especially between Europe and the rest of the world such as Asia, which tends to increase over time, is also a factor to be followed in this fundamental analysis of the AMG share.

Analysis N°3

Of course, the AMG Group is also facing increasing competition from direct and indirect rivals and it is therefore necessary to include a comprehensive study of this competitive environment in your analysis.

Analysis N°4

The ability of the group to reduce its production costs, for example by creating strategic partnerships or finding new suppliers, will have an influence on the competitiveness of the group and thus on its long-term profitability.

Analysis N°5

Finally, you should of course focus your attention on the company's financial results, particularly the annual and interim results. You should systematically compare these data with analysts' expectations and the targets that the group has set itself.

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General presentation of AMG

In order to have a good view of AMG's share price potential, it is necessary to know the company and its business. By learning to understand the company's business model, structure and major revenue sources, you'll have a better chance of anticipating its future stock market movements. Here are a few things to keep in mind:

AMG or Advanced Metallurgical Group NV is a Dutch company active in the industrial equipment sector. The company specialises in the manufacture of speciality metals and vacuum furnace systems for the aerospace, electronics, optical, chemical, construction and transport industries.

To better understand the group's activities, they can be divided into different divisions according to the share of turnover they generate and in this way:

  • Advanced metals and materials account for the bulk of this group's business, generating nearly 64.2% of the company's sales. This section includes aluminium alloys, magnesium alloys, silicon metal, chromium metal, tantalum oxides, titanium, vanadum chemicals, aluminium powders and coatings.
  • The next largest segment is vacuum furnace systems, which generate 35.8% of the company's sales and include injection, melting, crystallization, carburizing and other furnaces. In addition, the AMG Group also offers vacuum heat treatment services.

As part of your investment strategy for this stock, it is interesting to know the geographical distribution of this company's turnover. AMG generates only 0.7% of its sales in the Netherlands. The largest market is the US with 32.7% of sales. Next comes Germany with 15.6% of turnover, China with 8.3% of turnover, the United Kingdom with 5.2% of turnover, France with 5.2% of turnover, Italy with 4% of turnover, Japan with 3.8% of turnover, Brazil with 3.5% of turnover, Austria with 2.5% of turnover, South Korea with 1.8% of turnover, India with 1.8% of turnover and finally the rest of the world with 16.7% of turnover

Analysis of AMG share price
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The major competitors of AMG

Knowing AMG well is of course essential if you want to delay this value. But you must also know its sectoral environment and carry out an analysis of the competition before taking your position. This is what we propose to you now with a presentation of the companies in direct competition with this company.

CBMM

Also known as Companhia Brasileira de Metalurgica e Mieraçao or "Brazilian Metallurgy and Mining Company", this company is a Brazilian-based company specializing in the processing and technology of nobium, extracted from its pyrochlore mine located in the Brazilian state of Minas Gerais.

Alcoa

This other company whose name stands for Aluminium Company of America is an American company and the third largest producer of aluminium in the world. The company is present in more than 43 countries and employs no less than 127,000 people. It is therefore a direct competitor of AMG in this segment.

Metalcorp Group SA

Finally, the third most serious competitor to AMG is the international Metalcorp Group which is diversified into metals and minerals. This company markets physical products derived from its production facilities and long-term sampling partners through a strong sales and distribution network. Metalcorp is known for its many international partnerships and presence on five continents, in over 18 countries around the world. The company operates as a synergy-driven organization that enables it to respond seamlessly and efficiently to the needs of its customers around the world.


The major partners of AMG

After having discovered the main adversaries of the AMG group, we propose to learn a little more about its allies with some concrete and recent examples of strategic partnerships that this company has put in place:

Shell 

In 2019, the AMG Group has, among other things, established a major strategic partnership with the Shell Group subsidiary, Shell Catalyst & Technologies. This agreement signed between the two parties aims to create a joint venture named Shell & AMG Recycling BV and aims to provide a long-term sustainable solution for catalyst recovery and recycling. According to the group's statement, AMG has developed a world-class technology for recycling spent catalysts and will therefore form this joint venture and significantly expand and deepen the partnership with Shell. With the implementation of the IMO 2020 fuel sulphur regulation, the company expects a significant growth in the volume of spent catalysts. This end-to-end option available to oil refineries will represent an exceptional CO2 reduction opportunity.

Glencore 

Also in 2019, the AMG Group also announced the signing of a long-term partnership agreement with the aim of supplying 100% of its available ferrovanadium production from current and future facilities in Ohio to Glencore. AMG Vanadium specialises in the environmentally friendly conversion of oil refinery and power plant waste into ferrovanadium, nickel and molybdenum for use by global steel producers in the automotive, power transmission and infrastructure applications. Through this recycling, AMG creates environmental management, energy savings and resource recovery in line with the CO2 reduction strategy.

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Frequently Asked Questions

What were the latest financial results of the AMG Group?

It is interesting to know the key financial results of the AMG group over the past two years. Here are the figures that have been released by this company for the fiscal year 2019 and 2018. First of all, in 2018, the group reported a revenue increase to $1,310.3 million and a net income also increased to $94.78 million. As for 2019, the results are more negative with a revenue of $1188.6 million and a net loss of $48.59 million.

How do I make a good analysis of the AMG share price?

If you want to make a relevant analysis of the AMG share price, the best way is to use both fundamental analysis, i.e. the events that have a direct influence on its price and that you will find in the news, and technical analysis, which uses historical and current stock market charts with various technical indicators including trend and volatility indicators.

How to invest in AMG stock?

There are a number of different ways to invest in the AMG share price. You can decide to add this stock to your portfolio by buying it to earn dividends or you can simply speculate on the rise or fall of this stock with contracts for difference or CFDs from online brokers.

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