ERAMET (ER7.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ER7 - FR0000131757 - Common Stock
72.15 EUR
+3.9 (+5.71%)
Taking everything into account, ER7 scores 2 out of 10 in our fundamental rating. ER7 was compared to 42 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.
Of the past 5 years ER7 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ER7 (-1.58%) is worse than 66.67% of its industry peers.
The Return On Equity of ER7 (-9.29%) is worse than 76.19% of its industry peers.
ER7's Return On Invested Capital of 0.80% is on the low side compared to the rest of the industry. ER7 is outperformed by 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ER7 is in line with the industry average of 7.48%.
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.
Looking at the Operating Margin, with a value of 1.91%, ER7 is doing worse than 64.29% of the companies in the same industry.
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 90.48% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ER7 is destroying value.
Compared to 1 year ago, ER7 has more shares outstanding
Compared to 5 years ago, ER7 has more shares outstanding
Compared to 1 year ago, ER7 has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that ER7 is in the distress zone and has some risk of bankruptcy.
ER7 has a Altman-Z score of 1.15. This is in the lower half of the industry: ER7 underperforms 73.81% of its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that ER7 has dependencies on debt financing.
With a Debt to Equity ratio value of 2.03, ER7 is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.15 |
ROIC/WACC0.08
WACC9.47%
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.
Looking at the Current ratio, with a value of 1.54, ER7 is doing worse than 73.81% of the companies in the same industry.
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.
ER7 has a Quick ratio of 1.06. This is in the lower half of the industry: ER7 underperforms 64.29% of its industry peers.
| 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 -219.63% in the last year.
The earnings per share for ER7 have been decreasing by -64.00% on average. This is quite bad
ER7 shows a decrease in Revenue. In the last year, the revenue decreased by -6.91%.
ER7 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.39% yearly.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ER7 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as ER7's earnings are expected to decrease with -44.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-74.62%
EPS Next 3Y-44.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, ER7 has a reasonable but not impressive dividend return.
ER7's Dividend Yield is a higher than the industry average which is at 1.66.
ER7's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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-74.62%
EPS Next 3Y-44.51%
FRA:ER7 (1/9/2026, 7:00:00 PM)
72.15
+3.9 (+5.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners15.34%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap2.08B
Revenue(TTM)2.88B
Net Income(TTM)-97.00M
Analysts52.73
Price Target53.14 (-26.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)0%
PT rev (3m)1.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2336.59%
EPS NY rev (3m)-30.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.86%
Revenue NY rev (3m)-6.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.99 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 17.44 |
EPS(TTM)-3.42
EYN/A
EPS(NY)-4.4
Fwd EYN/A
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
Graham NumberN/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%
ROICexgc growth 3Y-56.22%
ROICexgc 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 | 1.15 |
F-Score2
WACC9.47%
ROIC/WACC0.08
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)-219.63%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%-268.75%
EPS Next Y-340.43%
EPS Next 2Y-74.62%
EPS Next 3Y-44.51%
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 Year-0.95%
Revenue Next 2Y5.78%
Revenue Next 3Y7%
Revenue Next 5YN/A
EBIT growth 1Y-51.75%
EBIT growth 3Y-50.34%
EBIT growth 5Y-22.39%
EBIT Next Year8.9%
EBIT Next 3Y30.86%
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
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%.