ERAMET (ER7.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ER7 - FR0000131757 - Common Stock
78.85 EUR
-2.8 (-3.43%)
Overall ER7 gets a fundamental rating of 2 out of 10. We evaluated ER7 against 45 industry peers in the Metals & Mining industry. ER7 has a bad profitability rating. Also its financial health evaluation is rather negative. ER7 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- ER7 had negative earnings in the past year.
- In the past year ER7 has reported a negative cash flow from operations.
- Of the past 5 years ER7 4 years were profitable.
- ER7 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%, ER7 is doing worse than 71.11% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -9.29%, ER7 is doing worse than 80.00% of the companies in the same industry.
- With a Return On Invested Capital value of 0.80%, ER7 is not doing good in the industry: 73.33% 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 8.05%.
- 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
- ER7's Profit Margin has declined in the last couple of years.
- ER7 has a Operating Margin of 1.91%. This is in the lower half of the industry: ER7 underperforms 68.89% of its industry peers.
- ER7's Operating Margin has declined in the last couple of years.
- The Gross Margin of ER7 (68.15%) is better than 88.89% 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.
- The number of shares outstanding for ER7 has been increased compared to 5 years ago.
- ER7 has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.17, we must say that ER7 is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ER7 (1.17) is worse than 71.11% of its industry peers.
- ER7 has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
- ER7 has a worse Debt to Equity ratio (2.03) than 91.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.08
WACC9.55%
2.3 Liquidity
- A Current Ratio of 1.54 indicates that ER7 should not have too much problems paying its short term obligations.
- ER7 has a Current ratio of 1.54. This is in the lower half of the industry: ER7 underperforms 73.33% of its industry peers.
- A Quick Ratio of 1.06 indicates that ER7 should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.06, ER7 is not doing good in the industry: 62.22% 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
- 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
- The Revenue has decreased by -6.91% in the past year.
- The Revenue has been decreasing by -4.39% on average over the past years.
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
- ER7 is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.91% yearly.
- ER7 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
- 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.
- 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
- Based on the Enterprise Value to EBITDA ratio, ER7 is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.37 |
4.3 Compensation for Growth
- ER7'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
- With a Yearly Dividend Yield of 1.67%, ER7 has a reasonable but not impressive dividend return.
- ER7's Dividend Yield is a higher than the industry average which is at 1.67.
- ER7's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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-47.83%
EPS Next 3Y-25.91%
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%.