ERAMET (ERA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ERA - FR0000131757 - Common Stock
87 EUR
+6.25 (+7.74%)
Overall ERA gets a fundamental rating of 2 out of 10. We evaluated ERA against 43 industry peers in the Metals & Mining industry. ERA has a bad profitability rating. Also its financial health evaluation is rather negative. ERA does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- ERA had negative earnings in the past year.
- ERA had a negative operating cash flow in the past year.
- Of the past 5 years ERA 4 years were profitable.
- ERA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -1.58%, ERA is doing worse than 72.09% of the companies in the same industry.
- ERA has a worse Return On Equity (-9.29%) than 79.07% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.84%, ERA is doing worse than 72.09% of the companies in the same industry.
- ERA had an Average Return On Invested Capital over the past 3 years of 7.61%. This is in line with the industry average of 8.16%.
- The 3 year average ROIC (7.61%) for ERA is well above the current ROIC(0.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -9.29% | ||
| ROIC | 0.84% |
ROA(3y)4.1%
ROA(5y)1.33%
ROE(3y)16.44%
ROE(5y)-1.91%
ROIC(3y)7.61%
ROIC(5y)8.07%
1.3 Margins
- ERA's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 1.91%, ERA is doing worse than 69.77% of the companies in the same industry.
- In the last couple of years the Operating Margin of ERA has declined.
- Looking at the Gross Margin, with a value of 68.15%, ERA belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
- In the last couple of years the Gross Margin of ERA 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 ERA is destroying value.
- ERA has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ERA has more shares outstanding
- The debt/assets ratio for ERA has been reduced compared to a year ago.
2.2 Solvency
- ERA has an Altman-Z score of 1.18. This is a bad value and indicates that ERA is not financially healthy and even has some risk of bankruptcy.
- ERA has a worse Altman-Z score (1.18) than 76.74% of its industry peers.
- A Debt/Equity ratio of 2.03 is on the high side and indicates that ERA has dependencies on debt financing.
- The Debt to Equity ratio of ERA (2.03) is worse than 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.08
WACC9.91%
2.3 Liquidity
- A Current Ratio of 1.54 indicates that ERA should not have too much problems paying its short term obligations.
- ERA's Current ratio of 1.54 is on the low side compared to the rest of the industry. ERA is outperformed by 74.42% of its industry peers.
- ERA has a Quick Ratio of 1.06. This is a normal value and indicates that ERA is financially healthy and should not expect problems in meeting its short term obligations.
- ERA has a worse Quick ratio (1.06) than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- ERA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -219.63%.
- ERA 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, ERA shows a decrease in Revenue. The Revenue has decreased by -6.91% in the last year.
- Measured over the past years, ERA 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
- The Earnings Per Share is expected to decrease by -25.91% on average over the next years. This is quite bad
- ERA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y-282.67%
EPS Next 2Y-47.83%
EPS Next 3Y-25.91%
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.
- 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
- The Price/Earnings Ratio is negative for ERA. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ERA. No positive earnings are expected for the next year.
| 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 ERA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.64 |
4.3 Compensation for Growth
- ERA's earnings are expected to decrease with -25.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-47.83%
EPS Next 3Y-25.91%
5. Dividend
5.1 Amount
- ERA has a Yearly Dividend Yield of 1.58%.
- Compared to an average industry Dividend Yield of 1.64, ERA pays a bit more dividend than its industry peers.
- ERA's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| 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
- ERA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-44.33%
EPS Next 2Y-47.83%
EPS Next 3Y-25.91%
ERAMET / ERA.PA FAQ
What is the fundamental rating for ERA stock?
ChartMill assigns a fundamental rating of 2 / 10 to ERA.PA.
Can you provide the valuation status for ERAMET?
ChartMill assigns a valuation rating of 0 / 10 to ERAMET (ERA.PA). This can be considered as Overvalued.
Can you provide the profitability details for ERAMET?
ERAMET (ERA.PA) has a profitability rating of 3 / 10.
Can you provide the dividend sustainability for ERA stock?
The dividend rating of ERAMET (ERA.PA) is 2 / 10 and the dividend payout ratio is -44.33%.