ERAMET (ER7.DE) Stock Fundamental Analysis
FRA:ER7 - Deutsche Boerse Ag - FR0000131757 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ER7. ER7 was compared to 37 industry peers in the Metals & Mining industry. While ER7 is still in line with the averages on profitability rating, there are concerns on its financial health. ER7 is not valued too expensively and it also shows 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.
The reported net income has been mixed in the past 5 years: ER7 reported negative net income in multiple years.
ER7 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.44%, ER7 is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
ER7 has a Return On Equity of -1.88%. This is in the lower half of the industry: ER7 underperforms 62.16% of its industry peers.
ER7 has a worse Return On Invested Capital (0.95%) than 64.86% 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 6.33%.
The 3 year average ROIC (7.17%) for ER7 is well above the current ROIC(0.95%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -1.88% | ||
| ROIC | 0.95% |
ROA(3y)5.62%
ROA(5y)0.67%
ROE(3y)25.94%
ROE(5y)-4.74%
ROIC(3y)7.17%
ROIC(5y)5.45%
1.3 Margins
In the last couple of years the Profit Margin of ER7 has grown nicely.
Looking at the Operating Margin, with a value of 3.68%, ER7 is in line with its industry, outperforming 43.24% 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 (66.44%) is better than 91.89% of its industry peers.
ER7's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| PM (TTM) | N/A | ||
| GM | 66.44% |
OM growth 3Y-25.05%
OM growth 5Y-24.15%
PM growth 3YN/A
PM growth 5Y18.7%
GM growth 3Y-1.38%
GM growth 5Y19.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ER7 is creating some value.
Compared to 1 year ago, ER7 has about the same amount of shares outstanding.
ER7 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ER7 has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that ER7 is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.28, ER7 is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
ER7 has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
ER7 has a worse Debt to Equity ratio (1.27) than 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.13
WACC7.14%
2.3 Liquidity
A Current Ratio of 2.08 indicates that ER7 has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.08, ER7 is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
A Quick Ratio of 1.66 indicates that ER7 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.66, ER7 is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for ER7 have decreased strongly by -119.24% in the last year.
ER7 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.49% yearly.
Looking at the last year, ER7 shows a very negative growth in Revenue. The Revenue has decreased by -22.19% in the last year.
ER7 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.69% yearly.
EPS 1Y (TTM)-119.24%
EPS 3YN/A
EPS 5Y15.49%
EPS Q2Q%-142.48%
Revenue 1Y (TTM)-22.19%
Revenue growth 3Y5.2%
Revenue growth 5Y-2.69%
Sales Q2Q%-9.48%
3.2 Future
Based on estimates for the next years, ER7 will show a very strong growth in Earnings Per Share. The EPS will grow by 26.76% on average per year.
ER7 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y-35.51%
EPS Next 2Y2.24%
EPS Next 3Y26.76%
EPS Next 5YN/A
Revenue Next Year-9.72%
Revenue Next 2Y-1.16%
Revenue Next 3Y3.36%
Revenue Next 5Y3.39%
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
ER7 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 7.94 indicates a rather cheap valuation of ER7.
Based on the Price/Forward Earnings ratio, ER7 is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
ER7 is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ER7 is valued cheaper than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.9 |
4.3 Compensation for Growth
ER7's earnings are expected to grow with 26.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.24%
EPS Next 3Y26.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, ER7 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.77, ER7 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, ER7 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DP0%
EPS Next 2Y2.24%
EPS Next 3Y26.76%
FRA:ER7 (3/5/2025, 7:00:00 PM)
54
+1.7 (+3.25%)
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 Cap1.55B
Analysts80
Price Target84.39 (56.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
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)-0.73%
PT rev (3m)-4.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-38.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.94 | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.97 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 3.9 |
EPS(TTM)-1.07
EYN/A
EPS(NY)6.8
Fwd EY12.6%
FCF(TTM)-22.84
FCFYN/A
OCF(TTM)-0.07
OCFYN/A
SpS107.75
BVpS55.39
TBVpS39.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -1.88% | ||
| ROCE | 2.14% | ||
| ROIC | 0.95% | ||
| ROICexc | 1.34% | ||
| ROICexgc | 1.52% | ||
| OM | 3.68% | ||
| PM (TTM) | N/A | ||
| GM | 66.44% | ||
| FCFM | N/A |
ROA(3y)5.62%
ROA(5y)0.67%
ROE(3y)25.94%
ROE(5y)-4.74%
ROIC(3y)7.17%
ROIC(5y)5.45%
ROICexc(3y)10.55%
ROICexc(5y)7.93%
ROICexgc(3y)12.48%
ROICexgc(5y)9.35%
ROCE(3y)16.5%
ROCE(5y)12.5%
ROICexcg growth 3Y-19.97%
ROICexcg growth 5Y-24.81%
ROICexc growth 3Y-19.75%
ROICexc growth 5Y-24.91%
OM growth 3Y-25.05%
OM growth 5Y-24.15%
PM growth 3YN/A
PM growth 5Y18.7%
GM growth 3Y-1.38%
GM growth 5Y19.66%
F-Score3
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 202.16% | ||
| Cap/Sales | 21.14% | ||
| Interest Coverage | 0.66 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 1.28 |
F-Score3
WACC7.14%
ROIC/WACC0.13
Cap/Depr(3y)182%
Cap/Depr(5y)147.41%
Cap/Sales(3y)13.6%
Cap/Sales(5y)13.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-119.24%
EPS 3YN/A
EPS 5Y15.49%
EPS Q2Q%-142.48%
EPS Next Y-35.51%
EPS Next 2Y2.24%
EPS Next 3Y26.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.19%
Revenue growth 3Y5.2%
Revenue growth 5Y-2.69%
Sales Q2Q%-9.48%
Revenue Next Year-9.72%
Revenue Next 2Y-1.16%
Revenue Next 3Y3.36%
Revenue Next 5Y3.39%
EBIT growth 1Y-72.6%
EBIT growth 3Y-21.15%
EBIT growth 5Y-26.19%
EBIT Next Year181.88%
EBIT Next 3Y68.43%
EBIT Next 5YN/A
FCF growth 1Y-267.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-100.24%
OCF growth 3Y-12.93%
OCF growth 5Y-14.13%