ERAMET (ER7.DE) Stock Fundamental Analysis
FRA:ER7 - Deutsche Boerse Ag - FR0000131757 - Common Stock - Currency: EUR
ER7 gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 40 industry peers in the Metals & Mining industry. There are concerns on the financial health of ER7 while its profitability can be described as average. ER7 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ER7 was profitable.
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
Looking at the Return On Assets, with a value of 0.22%, ER7 is in line with its industry, outperforming 42.50% of the companies in the same industry.
ER7 has a Return On Equity (0.97%) which is comparable to the rest of the industry.
ER7 has a worse Return On Invested Capital (1.34%) than 67.50% 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 7.42%.
The 3 year average ROIC (7.29%) for ER7 is well above the current ROIC(1.34%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.97% | ||
| ROIC | 1.34% |
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
ER7 has a Profit Margin of 0.48%. This is comparable to the rest of the industry: ER7 outperforms 45.00% of its industry peers.
In the last couple of years the Profit Margin of ER7 has declined.
With a Operating Margin value of 3.27%, ER7 perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
ER7's Operating Margin has declined in the last couple of years.
ER7 has a better Gross Margin (66.89%) than 90.00% of its industry peers.
In the last couple of years the Gross Margin of ER7 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.27% | ||
| PM (TTM) | 0.48% | ||
| GM | 66.89% |
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
ER7 has an Altman-Z score of 1.13. This is a bad value and indicates that ER7 is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ER7 (1.13) is worse than 77.50% of its industry peers.
ER7 has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
ER7 has a Debt to Equity ratio of 1.35. This is amonst the worse of the industry: ER7 underperforms 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.15
WACC9.02%
2.3 Liquidity
ER7 has a Current Ratio of 1.64. 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 1.64, ER7 is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that ER7 should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.17, ER7 is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
ER7 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.47%.
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 -9.78%.
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)-88.47%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%406.32%
Revenue 1Y (TTM)-9.78%
Revenue growth 3Y-7.18%
Revenue growth 5Y-4.39%
Sales Q2Q%-10.08%
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 31.30% on average per year.
ER7 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y-57.76%
EPS Next 2Y8.24%
EPS Next 3Y31.3%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y8.73%
Revenue Next 3Y5.55%
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
With a Price/Earnings ratio of 112.14, ER7 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ER7 indicates a slightly more expensive valuation: ER7 is more expensive than 60.00% of the companies listed in the same industry.
ER7's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 27.20, ER7 can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ER7 is valued a bit more expensive than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, ER7 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.14 | ||
| Fwd PE | 27.2 |
4.2 Price Multiples
ER7's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ER7's earnings are expected to grow with 31.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.24%
EPS Next 3Y31.3%
5. Dividend
5.1 Amount
ER7 has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 3.08, ER7 pays a bit more dividend than its industry peers.
ER7's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ER7 pays out 307.14% of its income as dividend. This is not a sustainable payout ratio.
DP307.14%
EPS Next 2Y8.24%
EPS Next 3Y31.3%
FRA:ER7 (7/9/2025, 7:00:00 PM)
48.22
+0.82 (+1.73%)
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 Cap1.39B
Analysts55
Price Target65.18 (35.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP307.14%
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)-23.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-39.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.14 | ||
| Fwd PE | 27.2 | ||
| P/S | 0.47 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.96 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)0.43
EY0.89%
EPS(NY)1.77
Fwd EY3.68%
FCF(TTM)-28.23
FCFYN/A
OCF(TTM)-4.35
OCFYN/A
SpS101.98
BVpS50.1
TBVpS34.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.97% | ||
| ROCE | 1.92% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.63% | ||
| ROICexgc | 1.82% | ||
| OM | 3.27% | ||
| PM (TTM) | 0.48% | ||
| GM | 66.89% | ||
| 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.9 | ||
| Cap/Depr | 454.97% | ||
| Cap/Sales | 23.42% | ||
| Interest Coverage | 0.56 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 1.13 |
F-Score2
WACC9.02%
ROIC/WACC0.15
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)-88.47%
EPS 3Y-64%
EPS 5YN/A
EPS Q2Q%406.32%
EPS Next Y-57.76%
EPS Next 2Y8.24%
EPS Next 3Y31.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.78%
Revenue growth 3Y-7.18%
Revenue growth 5Y-4.39%
Sales Q2Q%-10.08%
Revenue Next Year5.37%
Revenue Next 2Y8.73%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y-23.81%
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-61.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-161.27%
OCF growth 3YN/A
OCF growth 5YN/A