ERAMET (ER7.DE) Stock Fundamental Analysis
FRA:ER7 - Deutsche Boerse Ag - FR0000131757 - Common Stock - Currency: EUR
Taking everything into account, ER7 scores 3 out of 10 in our fundamental rating. ER7 was compared to 38 industry peers in the Metals & Mining industry. There are concerns on the financial health of ER7 while its profitability can be described as average. ER7 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ER7 had positive earnings in the past year.
In the past year ER7 has reported a negative cash flow from operations.
Of the past 5 years ER7 4 years were profitable.
ER7 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ER7 has a Return On Assets (0.22%) which is comparable to the rest of the industry.
ER7's Return On Equity of 0.97% is in line compared to the rest of the industry. ER7 outperforms 42.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.34%, ER7 is doing worse than 65.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ER7 is in line with the industry average of 6.32%.
The 3 year average ROIC (7.29%) for ER7 is well above the current ROIC(1.34%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.97% | ||
| ROIC | 1.34% |
ROA(3y)4.1%
ROA(5y)1.33%
ROE(3y)16.44%
ROE(5y)-1.91%
ROIC(3y)7.29%
ROIC(5y)7.73%
1.3 Margins
Looking at the Profit Margin, with a value of 0.48%, ER7 is in line with its industry, outperforming 42.11% of the companies in the same industry.
In the last couple of years the Profit Margin of ER7 has declined.
ER7 has a Operating Margin (3.27%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ER7 has declined.
ER7's Gross Margin of 66.89% is amongst the best of the industry. ER7 outperforms 92.11% of its industry peers.
In the last couple of years the Gross Margin of ER7 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.27% | ||
| PM (TTM) | 0.48% | ||
| GM | 66.89% |
OM growth 3Y-46.5%
OM growth 5Y-18.83%
PM growth 3Y-61.12%
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y23.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ER7 is destroying value.
The number of shares outstanding for ER7 has been increased compared to 1 year ago.
ER7 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ER7 has an improved debt to assets ratio.
2.2 Solvency
ER7 has an Altman-Z score of 1.13. This is a bad value and indicates that ER7 is not financially healthy and even has some risk of bankruptcy.
ER7 has a worse Altman-Z score (1.13) than 81.58% of its industry peers.
ER7 has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
ER7 has a Debt to Equity ratio of 1.35. This is amonst the worse of the industry: ER7 underperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.15
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.64 indicates that ER7 should not have too much problems paying its short term obligations.
ER7 has a Current ratio (1.64) which is comparable to the rest of the industry.
ER7 has a Quick Ratio of 1.17. This is a normal value and indicates that ER7 is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.17, ER7 is doing good in the industry, outperforming 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
ER7 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.47%.
ER7 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -64.00% yearly.
Looking at the last year, ER7 shows a decrease in Revenue. The Revenue has decreased by -9.78% in the last year.
Measured over the past years, ER7 shows a decrease in Revenue. The Revenue has been decreasing by -4.39% on average per year.
EPS 1Y (TTM)-88.47%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%406.32%
Revenue 1Y (TTM)-9.78%
Revenue growth 3Y-7.18%
Revenue growth 5Y-4.39%
Sales Q2Q%-10.08%
3.2 Future
ER7 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.30% yearly.
The Revenue is expected to grow by 7.26% on average over the next years.
EPS Next Y-57.76%
EPS Next 2Y8.24%
EPS Next 3Y31.3%
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y7.34%
Revenue Next 3Y7.26%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 112.19, the valuation of ER7 can be described as expensive.
Based on the Price/Earnings ratio, ER7 is valued a bit more expensive than the industry average as 60.53% of the companies are valued more cheaply.
ER7 is valuated expensively when we compare the Price/Earnings ratio to 28.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.22, which means the current valuation is very expensive for ER7.
Based on the Price/Forward Earnings ratio, ER7 is valued a bit more expensive than the industry average as 65.79% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ER7 to the average of the S&P500 Index (21.38), we can say ER7 is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.19 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ER7 is valued a bit more expensive than the industry average as 60.53% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ER7's earnings are expected to grow with 31.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.24%
EPS Next 3Y31.3%
5. Dividend
5.1 Amount
ER7 has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.75, ER7 pays a bit more dividend than its industry peers.
ER7's Dividend Yield is a higher than the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
307.14% of the earnings are spent on dividend by ER7. This is not a sustainable payout ratio.
DP307.14%
EPS Next 2Y8.24%
EPS Next 3Y31.3%
FRA:ER7 (4/29/2025, 7:00:00 PM)
48.24
-2.41 (-4.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners11.15%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap1.39B
Analysts80
Price Target85.2 (76.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP307.14%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.96%
PT rev (3m)-0.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-73.94%
EPS NY rev (3m)-82.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.22%
Revenue NY rev (3m)-4.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.19 | ||
| Fwd PE | 27.22 | ||
| P/S | 0.47 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.96 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)0.43
EY0.89%
EPS(NY)1.77
Fwd EY3.67%
FCF(TTM)-28.23
FCFYN/A
OCF(TTM)-4.35
OCFYN/A
SpS101.98
BVpS50.1
TBVpS34.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.97% | ||
| ROCE | 1.92% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.63% | ||
| ROICexgc | 1.82% | ||
| OM | 3.27% | ||
| PM (TTM) | 0.48% | ||
| GM | 66.89% | ||
| FCFM | N/A |
ROA(3y)4.1%
ROA(5y)1.33%
ROE(3y)16.44%
ROE(5y)-1.91%
ROIC(3y)7.29%
ROIC(5y)7.73%
ROICexc(3y)10.98%
ROICexc(5y)11.38%
ROICexgc(3y)12.91%
ROICexgc(5y)13.43%
ROCE(3y)10.76%
ROCE(5y)11.32%
ROICexcg growth 3Y-56.22%
ROICexcg growth 5Y-25.38%
ROICexc growth 3Y-55.33%
ROICexc growth 5Y-24.94%
OM growth 3Y-46.5%
OM growth 5Y-18.83%
PM growth 3Y-61.12%
PM growth 5YN/A
GM growth 3Y-3.21%
GM growth 5Y23.96%
F-Score2
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.9 | ||
| Cap/Depr | 454.97% | ||
| Cap/Sales | 23.42% | ||
| Interest Coverage | 0.56 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 1.13 |
F-Score2
WACC9.08%
ROIC/WACC0.15
Cap/Depr(3y)260.42%
Cap/Depr(5y)209.27%
Cap/Sales(3y)18.57%
Cap/Sales(5y)15.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-88.47%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%406.32%
EPS Next Y-57.76%
EPS Next 2Y8.24%
EPS Next 3Y31.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.78%
Revenue growth 3Y-7.18%
Revenue growth 5Y-4.39%
Sales Q2Q%-10.08%
Revenue Next Year5.81%
Revenue Next 2Y7.34%
Revenue Next 3Y7.26%
Revenue Next 5YN/A
EBIT growth 1Y-23.81%
EBIT growth 3Y-50.34%
EBIT growth 5Y-22.39%
EBIT Next Year127.39%
EBIT Next 3Y42.35%
EBIT Next 5YN/A
FCF growth 1Y-61.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-161.27%
OCF growth 3YN/A
OCF growth 5YN/A