ERAMET (ER7.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ER7 - FR0000131757 - Common Stock
81.65 EUR
+0.65 (+0.8%)
Taking everything into account, ER7 scores 2 out of 10 in our fundamental rating. ER7 was compared to 43 industry peers in the Metals & Mining industry. Both the profitability and financial health of ER7 have multiple concerns. ER7 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ER7 has reported negative net income.
- ER7 had a negative operating cash flow in the past year.
- ER7 had positive earnings in 4 of the past 5 years.
- ER7 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -1.58%, ER7 is not doing good in the industry: 74.42% of the companies in the same industry are doing better.
- ER7 has a worse Return On Equity (-9.29%) than 81.40% of its industry peers.
- With a Return On Invested Capital value of 0.80%, ER7 is not doing good in the industry: 74.42% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for ER7 is in line with the industry average of 8.16%.
- The last Return On Invested Capital (0.80%) for ER7 is well below the 3 year average (7.29%), which needs to be investigated, but indicates that ER7 had better years and this may not be a problem.
| 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.
- Looking at the Operating Margin, with a value of 1.91%, ER7 is doing worse than 72.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of ER7 has declined.
- The Gross Margin of ER7 (68.15%) is better than 88.37% of its industry peers.
- ER7's Gross Margin has improved in the last couple of years.
| 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
- 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.
- Compared to 5 years ago, ER7 has more shares outstanding
- The debt/assets ratio for ER7 has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.18, we must say that ER7 is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.18, ER7 is not doing good in the industry: 74.42% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 2.03 is on the high side and indicates that ER7 has dependencies on debt financing.
- The Debt to Equity ratio of ER7 (2.03) is worse than 93.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.08
WACC9.71%
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.
- The Current ratio of ER7 (1.54) is worse than 76.74% of its industry peers.
- ER7 has a Quick Ratio of 1.06. 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 Quick ratio value of 1.06, ER7 is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- ER7 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -219.63%.
- 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 -6.91% 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)-219.63%
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
- Based on estimates for the next years, ER7 will show a very negative growth in Earnings Per Share. The EPS will decrease by -44.51% on average per year.
- The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y-340.43%
EPS Next 2Y-74.62%
EPS Next 3Y-44.51%
EPS Next 5YN/A
Revenue Next Year-0.95%
Revenue Next 2Y5.78%
Revenue Next 3Y7%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- ER7 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year ER7 is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 60.47% of the companies in the same industry are cheaper than ER7, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.67 |
4.3 Compensation for Growth
- ER7's earnings are expected to decrease with -44.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-74.62%
EPS Next 3Y-44.51%
5. Dividend
5.1 Amount
- ER7 has a Yearly Dividend Yield of 1.58%. 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 1.65.
- ER7's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- ER7 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-44.33%
EPS Next 2Y-74.62%
EPS Next 3Y-44.51%
ERAMET / ER7.DE FAQ
What is the fundamental rating for ER7 stock?
ChartMill assigns a fundamental rating of 2 / 10 to ER7.DE.
Can you provide the valuation status for ERAMET?
ChartMill assigns a valuation rating of 0 / 10 to ERAMET (ER7.DE). This can be considered as Overvalued.
What is the profitability of ER7 stock?
ERAMET (ER7.DE) has a profitability rating of 3 / 10.
Can you provide the financial health for ER7 stock?
The financial health rating of ERAMET (ER7.DE) is 1 / 10.
How sustainable is the dividend of ERAMET (ER7.DE) stock?
The dividend rating of ERAMET (ER7.DE) is 2 / 10 and the dividend payout ratio is -44.33%.