ERAMET (ER7.DE) Stock Fundamental Analysis
Europe - FRA:ER7 - FR0000131757 - Common Stock
51.15 EUR
-1.7 (-3.22%)
Overall ER7 gets a fundamental rating of 3 out of 10. We evaluated ER7 against 38 industry peers in the Metals & Mining industry. Both the profitability and financial health of ER7 have multiple concerns. ER7 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ER7 has reported negative net income.
In the past year ER7 has reported a negative cash flow from operations.
Of the past 5 years ER7 4 years were profitable.
Of the past 5 years ER7 4 years had a positive operating cash flow.
1.2 Ratios
ER7 has a Return On Assets of -1.58%. This is in the lower half of the industry: ER7 underperforms 65.79% of its industry peers.
Looking at the Return On Equity, with a value of -9.29%, ER7 is doing worse than 73.68% of the companies in the same industry.
ER7 has a Return On Invested Capital of 0.80%. This is in the lower half of the industry: ER7 underperforms 65.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ER7 is in line with the industry average of 8.13%.
The 3 year average ROIC (7.29%) for ER7 is well above the current ROIC(0.80%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -9.29% | ||
| ROIC | 0.8% |
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
In the last couple of years the Profit Margin of ER7 has declined.
ER7 has a worse Operating Margin (1.91%) than 65.79% of its industry peers.
In the last couple of years the Operating Margin of ER7 has declined.
With an excellent Gross Margin value of 68.15%, ER7 belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
In the last couple of years the Gross Margin of ER7 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.91% | ||
| PM (TTM) | N/A | ||
| GM | 68.15% |
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
ER7 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ER7 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ER7 has more shares outstanding
ER7 has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that ER7 is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.08, ER7 is doing worse than 71.05% of the companies in the same industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that ER7 has dependencies on debt financing.
ER7 has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: ER7 underperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.09
WACC9.14%
2.3 Liquidity
ER7 has a Current Ratio of 1.54. This is a normal value and indicates that ER7 is financially healthy and should not expect problems in meeting its short term obligations.
ER7's Current ratio of 1.54 is on the low side compared to the rest of the industry. ER7 is outperformed by 68.42% of its industry peers.
A Quick Ratio of 1.06 indicates that ER7 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, ER7 is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for ER7 have decreased strongly by -221.18% in the last year.
ER7 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -64.00% yearly.
The Revenue has decreased by -6.91% in the past year.
ER7 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.39% yearly.
EPS 1Y (TTM)-221.18%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%-268.75%
Revenue 1Y (TTM)-6.91%
Revenue growth 3Y-7.18%
Revenue growth 5Y-4.39%
Sales Q2Q%-3.31%
3.2 Future
The Earnings Per Share is expected to grow by 29.34% on average over the next years. This is a very strong growth
ER7 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y-274.73%
EPS Next 2Y-2.62%
EPS Next 3Y29.34%
EPS Next 5YN/A
Revenue Next Year6.82%
Revenue Next 2Y7.82%
Revenue Next 3Y8.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ER7. In the last year negative earnings were reported.
ER7 is valuated correctly with a Price/Forward Earnings ratio of 12.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ER7 is on the same level as its industry peers.
ER7's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
ER7's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ER7 is more expensive than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.51 |
4.3 Compensation for Growth
ER7's earnings are expected to grow with 29.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.62%
EPS Next 3Y29.34%
5. Dividend
5.1 Amount
ER7 has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
ER7's Dividend Yield is a higher than the industry average which is at 2.77.
Compared to an average S&P500 Dividend Yield of 2.38, ER7 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of ER7 are negative and hence is the payout ratio. ER7 will probably not be able to sustain this dividend level.
DP-44.33%
EPS Next 2Y-2.62%
EPS Next 3Y29.34%
FRA:ER7 (8/29/2025, 7:00:00 PM)
51.15
-1.7 (-3.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners11.85%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap1.47B
Analysts52.73
Price Target57.36 (12.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP-44.33%
Div Incr Years0
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)-11.99%
PT rev (3m)-10.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-513.67%
EPS NY rev (3m)-513.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.85 | ||
| P/S | 0.51 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.41 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 14.51 |
EPS(TTM)-3.44
EYN/A
EPS(NY)3.98
Fwd EY7.78%
FCF(TTM)-25.76
FCFYN/A
OCF(TTM)-4.59
OCFYN/A
SpS100.31
BVpS36.3
TBVpS18.78
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -9.29% | ||
| ROCE | 1.16% | ||
| ROIC | 0.8% | ||
| ROICexc | 0.95% | ||
| ROICexgc | 1.09% | ||
| OM | 1.91% | ||
| PM (TTM) | N/A | ||
| GM | 68.15% | ||
| 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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.29 | ||
| Cap/Depr | 403.31% | ||
| Cap/Sales | 21.11% | ||
| Interest Coverage | 0.34 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.08 |
F-Score2
WACC9.14%
ROIC/WACC0.09
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)-221.18%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%-268.75%
EPS Next Y-274.73%
EPS Next 2Y-2.62%
EPS Next 3Y29.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.91%
Revenue growth 3Y-7.18%
Revenue growth 5Y-4.39%
Sales Q2Q%-3.31%
Revenue Next Year6.82%
Revenue Next 2Y7.82%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
EBIT growth 1Y-51.75%
EBIT growth 3Y-50.34%
EBIT growth 5Y-22.39%
EBIT Next Year104.71%
EBIT Next 3Y37.27%
EBIT Next 5YN/A
FCF growth 1Y-850%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-121.46%
OCF growth 3YN/A
OCF growth 5YN/A