📊 EAF Key Takeaways
Is Graftech International Ltd. (EAF) a Good Investment?
GrafTech is technically insolvent with negative stockholders' equity of -$304.4M, negative gross profit, and persistent negative cash flows destroying shareholder value. The core business is unable to generate profit on sales, revenues are declining 6.4% YoY, and losses are accelerating with net income deteriorating 67.6% YoY while the company burns cash operationally.
GrafTech's fundamentals are severely impaired: revenue declined, gross margin turned negative, and losses expanded to a net margin of -43.6%. The balance sheet is highly stressed with negative equity and debt exceeding total assets, while negative operating cash flow and deeply negative free cash flow indicate weak earnings quality and poor financial flexibility.
Why Buy Graftech International Ltd. Stock? EAF Key Strengths
- Maintains $120.2M cash balance providing short-term liquidity runway
- Current ratio of 3.33x and quick ratio of 1.74x indicate adequate near-term working capital
- Operates in essential industrial infrastructure sector with structural demand
- Liquidity appears adequate in the near term, with a 3.78x current ratio and 2.03x quick ratio
- Cash balance of $138.43M provides some short-term cushion
- Revenue base remains meaningful at $504.13M, indicating the business still has operating scale
EAF Stock Risks: Graftech International Ltd. Investment Risks
- Negative stockholders' equity of -$304.4M indicates technical insolvency and negative book value
- Negative gross profit (-12.0% margin) demonstrates core business failure at fundamental level
- Negative operating and free cash flows (-$14.9M and -$27.1M respectively) unsustainable; company burning cash
- Negative interest coverage ratio (-1.3x) means operating income cannot service $1.1B debt burden
- Net losses accelerating rapidly (-67.6% YoY deterioration) with revenue declining simultaneously
- Likely facing debt covenant violations or forced restructuring given insolvency
- Profitability is deeply negative, including -3.1% gross margin and -15.3% operating margin
- Balance sheet is distressed, with negative stockholders equity and $1.09B of long-term debt
- Cash generation is weak, with negative operating cash flow and -$120.50M of free cash flow
Key Metrics to Watch
- Gross profit trend - must return to positive territory for operational viability
- Operating cash flow - critical inflection point; negative burn is unsustainable
- Debt covenant compliance and refinancing access - refinancing risk elevated given insolvency
- Revenue stabilization - continued decline compounds all profitability challenges
- Cash depletion rate - $120.2M runway finite at current burn rate
- Gross margin and operating margin recovery
- Operating cash flow and debt reduction/liquidity trend
Graftech International Ltd. (EAF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.33x current ratio provides a solid financial cushion.
EAF Profit Margin, ROE & Profitability Analysis
EAF vs Utilities Sector: How Graftech International Ltd. Compares
How Graftech International Ltd. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Graftech International Ltd. Stock Overvalued? EAF Valuation Analysis 2026
Based on fundamental analysis, Graftech International Ltd. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Graftech International Ltd. Balance Sheet: EAF Debt, Cash & Liquidity
EAF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Graftech International Ltd.'s revenue has declined by 65% over the 5-year period, indicating business contraction. The most recent EPS of $-9.93 indicates the company is currently unprofitable.
EAF Revenue Growth, EPS Growth & YoY Performance
EAF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $111.8M | -$39.4M | $-1.52 |
| Q3 2025 | $130.7M | -$14.8M | $-1.10 |
| Q2 2025 | $131.8M | -$14.8M | $-0.06 |
| Q1 2025 | $111.8M | -$30.9M | $-0.12 |
| Q3 2024 | $130.7M | -$7.4M | $-0.09 |
| Q2 2024 | $137.3M | -$7.4M | $-0.03 |
| Q1 2024 | $136.6M | -$7.4M | $-0.03 |
| Q3 2023 | $159.0M | -$7.4M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Graftech International Ltd. Dividends, Buybacks & Capital Allocation
EAF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Graftech International Ltd. (CIK: 0000931148)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EAF
What is the AI rating for EAF?
Graftech International Ltd. (EAF) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 95% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EAF's key strengths?
Claude: Maintains $120.2M cash balance providing short-term liquidity runway. Current ratio of 3.33x and quick ratio of 1.74x indicate adequate near-term working capital. ChatGPT: Liquidity appears adequate in the near term, with a 3.78x current ratio and 2.03x quick ratio. Cash balance of $138.43M provides some short-term cushion.
What are the risks of investing in EAF?
Claude: Negative stockholders' equity of -$304.4M indicates technical insolvency and negative book value. Negative gross profit (-12.0% margin) demonstrates core business failure at fundamental level. ChatGPT: Profitability is deeply negative, including -3.1% gross margin and -15.3% operating margin. Balance sheet is distressed, with negative stockholders equity and $1.09B of long-term debt.
What is EAF's revenue and growth?
Graftech International Ltd. reported revenue of $125.1M.
Does EAF pay dividends?
Graftech International Ltd. does not currently pay dividends.
Where can I find EAF SEC filings?
Official SEC filings for Graftech International Ltd. (CIK: 0000931148) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EAF's EPS?
Graftech International Ltd. has a diluted EPS of $-1.66.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EAF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Graftech International Ltd. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EAF stock overvalued or undervalued?
Valuation metrics for EAF: ROE of N/A (sector avg: 10%), net margin of -34.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EAF stock in 2026?
Our dual AI analysis gives Graftech International Ltd. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EAF's free cash flow?
Graftech International Ltd.'s operating cash flow is $-14.9M, with capital expenditures of $12.1M. FCF margin is -21.6%.
How does EAF compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -34.6% (avg: 12%), ROE N/A (avg: 10%), current ratio 3.33 (avg: 0.8).