Business Model: GrafTech is a vertically integrated leader in ultra-high-power graphite electrodes (UHP-GE), supplying 60-70% of production through long-term take-or-pay contracts, ensuring predictable cash flows.

Financial Performance: The company expects to generate $2.2 billion in free cash flow by 2022, with plans to reduce debt, repurchase shares, and pay dividends, potentially driving the stock price above $30.

Market Dynamics: UHP-GE prices have surged due to tight supply and high demand, with GrafTech benefiting from lower production costs through its in-house petroleum needle coke supply.

Growth Opportunities: Increased electric arc furnace (EAF) steel production in China and rising demand for lithium-ion batteries could further tighten the needle coke market, enhancing GrafTech's competitive edge.

Valuation and Risks: The report values GrafTech at $24-$26 per share but highlights risks such as declining electrode prices, constrained supply of needle coke, and potential competitor expansions.