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Ercros

BME:ECR
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ECR
BME
€211M
Market Cap
  1. Home
  2. ES
  3. Materials
Company description

Ercros, S.A. manufactures and sells basic chemicals, intermediate chemicals, and pharmaceuticals in Spain. The last earnings update was 49 days ago. More info.


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  • Ercros has significant price volatility in the past 3 months.
ECR Share Price and Events
7 Day Returns
-1.1%
BME:ECR
1.7%
Europe Chemicals
0.4%
ES Market
1 Year Returns
-54.6%
BME:ECR
-5.8%
Europe Chemicals
-5.1%
ES Market
ECR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ercros (ECR) -1.1% -13.7% -37% -54.6% 120.6% 337.7%
Europe Chemicals 1.7% 3.6% 2.6% -5.8% 24.1% 20%
ES Market 0.4% 0.8% 1% -5.1% 20.8% -17.3%
1 Year Return vs Industry and Market
  • ECR underperformed the Chemicals industry which returned -5.8% over the past year.
  • ECR underperformed the Market in Spain which returned -5.1% over the past year.
Price Volatility
ECR
Industry
5yr Volatility vs Market

Value

 Is Ercros undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ercros to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ercros.

BME:ECR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.6%
Perpetual Growth Rate 10-Year ES Government Bond Rate 1.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BME:ECR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ES Govt Bond Rate 1.5%
Equity Risk Premium S&P Global 8.2%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.877 (1 + (1- 25%) (70.71%))
1.229
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.53% + (1.229 * 8.18%)
11.58%

Discounted Cash Flow Calculation for BME:ECR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ercros is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BME:ECR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 11.58%)
2019 -19.10 Analyst x1 -17.12
2020 21.20 Analyst x1 17.03
2021 31.90 Analyst x1 22.96
2022 41.05 Est @ 28.69% 26.49
2023 49.48 Est @ 20.54% 28.61
2024 56.82 Est @ 14.84% 29.45
2025 62.98 Est @ 10.84% 29.25
2026 68.05 Est @ 8.05% 28.33
2027 72.20 Est @ 6.09% 26.94
2028 75.61 Est @ 4.72% 25.28
Present value of next 10 years cash flows €217.23
BME:ECR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €75.61 × (1 + 1.53%) ÷ (11.58% – 1.53%)
€763.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €763.68 ÷ (1 + 11.58%)10
€255.35
BME:ECR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €217.23 + €255.35
€472.58
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €472.58 / 106.28
€4.45
BME:ECR Discount to Share Price
Calculation Result
Value per share (EUR) From above. €4.45
Current discount Discount to share price of €1.98
= -1 x (€1.98 - €4.45) / €4.45
55.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ercros is available for.
Intrinsic value
>50%
Share price is €1.98 vs Future cash flow value of €4.45
Current Discount Checks
For Ercros to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ercros's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ercros's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ercros's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ercros's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BME:ECR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €0.37
BME:ECR Share Price ** BME (2019-06-24) in EUR €1.98
Europe Chemicals Industry PE Ratio Median Figure of 91 Publicly-Listed Chemicals Companies 17.57x
Spain Market PE Ratio Median Figure of 139 Publicly-Listed Companies 16.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ercros.

BME:ECR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BME:ECR Share Price ÷ EPS (both in EUR)

= 1.98 ÷ 0.37

5.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ercros is good value based on earnings compared to the Europe Chemicals industry average.
  • Ercros is good value based on earnings compared to the Spain market.
Price based on expected Growth
Does Ercros's expected growth come at a high price?
Raw Data
BME:ECR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
0.6%per year
Europe Chemicals Industry PEG Ratio Median Figure of 60 Publicly-Listed Chemicals Companies 1.89x
Spain Market PEG Ratio Median Figure of 79 Publicly-Listed Companies 1.64x

*Line of best fit is calculated by linear regression .

BME:ECR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.37x ÷ 0.6%

8.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ercros is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ercros's assets?
Raw Data
BME:ECR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €2.57
BME:ECR Share Price * BME (2019-06-24) in EUR €1.98
Europe Chemicals Industry PB Ratio Median Figure of 140 Publicly-Listed Chemicals Companies 1.7x
Spain Market PB Ratio Median Figure of 185 Publicly-Listed Companies 1.68x
BME:ECR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BME:ECR Share Price ÷ Book Value per Share (both in EUR)

= 1.98 ÷ 2.57

0.77x

* Primary Listing of Ercros.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ercros is good value based on assets compared to the Europe Chemicals industry average.
X
Value checks
We assess Ercros's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Ercros has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ercros expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ercros expected to grow at an attractive rate?
  • Ercros's earnings growth is positive but not above the low risk savings rate of 1.5%.
Growth vs Market Checks
  • Ercros's earnings growth is positive but not above the Spain market average.
  • Ercros's revenue growth is positive but not above the Spain market average.
Annual Growth Rates Comparison
Raw Data
BME:ECR Future Growth Rates Data Sources
Data Point Source Value (per year)
BME:ECR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 0.6%
BME:ECR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 3.6%
Europe Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
Europe Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Spain Market Earnings Growth Rate Market Cap Weighted Average 8%
Spain Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BME:ECR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BME:ECR Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 752 69 34 1
2020-12-31 743 63 30 1
2019-12-31 714 48 18 1
BME:ECR Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 679 39
2018-12-31 672 45 45
2018-09-30 680 47
2018-06-30 681 72 49
2018-03-31 682 45
2017-12-31 681 44 45
2017-09-30 663 52
2017-06-30 644 21 49
2017-03-31 626 46
2016-12-31 603 38 45
2016-09-30 608 29
2016-06-30 613 43 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ercros's earnings are expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
  • Ercros's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BME:ECR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Ercros Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BME:ECR Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.32 0.32 0.32 1.00
2020-12-31 0.27 0.27 0.27 1.00
2019-12-31 0.16 0.16 0.16 1.00
BME:ECR Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 0.37
2018-12-31 0.41
2018-09-30
2018-06-30 0.44
2018-03-31
2017-12-31 0.40
2017-09-30
2017-06-30 0.44
2017-03-31
2016-12-31 0.40
2016-09-30
2016-06-30 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ercros is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ercros's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ercros has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ercros performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ercros's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ercros has delivered over 20% year on year earnings growth in the past 5 years.
  • Ercros's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ercros's 1-year earnings growth is negative, it can't be compared to the Europe Chemicals industry average.
Earnings and Revenue History
Ercros's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ercros Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BME:ECR Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 679.42 39.21 91.00
2018-12-31 672.09 44.88 90.27
2018-09-30 679.67 46.79 88.22
2018-06-30 680.57 48.90 90.00
2018-03-31 681.64 44.77 93.40
2017-12-31 681.47 44.58 92.36
2017-09-30 663.35 52.02 94.55
2017-06-30 644.02 49.48 98.32
2017-03-31 626.09 46.42 90.68
2016-12-31 602.59 45.17 90.98
2016-09-30 608.25 28.64 80.92
2016-06-30 612.82 21.33 86.93
2016-03-31 620.02 14.81 81.06
2015-12-31 618.37 7.24 87.38
2015-09-30 609.38 -3.29 79.41
2015-06-30 611.76 -3.10 79.71
2015-03-31 606.41 -4.02 79.28
2014-12-31 603.69 -7.10 79.08
2014-09-30 607.85 4.24 80.49
2014-06-30 608.02 4.30 75.65
2014-03-31 616.87 4.18 80.49
2013-12-31 625.04 -0.32 80.49
2013-09-30 657.71 -8.29 86.98
2013-06-30 615.17 -8.17 85.62
2013-03-31 669.60 -13.34 85.04
2012-12-31 639.68 -10.80 83.55
2012-09-30 672.91 -13.13 94.06
2012-06-30 674.53 -12.65 79.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ercros has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ercros used its assets more efficiently than the Europe Chemicals industry average last year based on Return on Assets.
  • Ercros's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ercros's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ercros has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ercros's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ercros's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ercros is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ercros's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ercros's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ercros Company Filings, last reported 2 months ago.

BME:ECR Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 272.70 149.04
2018-12-31 272.67 132.23 15.85
2018-09-30 261.25 118.05 20.20
2018-06-30 261.25 118.05 20.20
2018-03-31 252.57 98.89
2017-12-31 247.49 125.88 22.74
2017-09-30 229.98 125.37 19.47
2017-06-30 229.98 125.37 19.47
2017-03-31 219.83 148.15 48.26
2016-12-31 219.83 148.15 48.27
2016-09-30 195.07 141.62 41.34
2016-06-30 195.07 141.62 41.34
2016-03-31 183.80 86.14
2015-12-31 175.88 141.14 21.62
2015-09-30 174.66 144.80 56.12
2015-06-30 174.34 156.58 22.66
2015-03-31 169.31 109.72
2014-12-31 168.19 148.68 19.89
2014-09-30 177.12 115.42
2014-06-30 176.02 164.72 17.44
2014-03-31 170.37 137.13
2013-12-31 172.21 169.78 16.51
2013-09-30 171.39 142.38
2013-06-30 171.07 190.42 15.17
2013-03-31 168.00 125.06
2012-12-31 173.87 157.10 12.09
2012-09-30 178.58 122.92
2012-06-30 180.93 168.06 8.85
  • Ercros's level of debt (54.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (80.6% vs 54.7% today).
  • Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
X
Financial health checks
We assess Ercros's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ercros has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ercros's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.03%
Current annual income from Ercros dividends. Estimated to be 1.85% next year.
If you bought €2,000 of Ercros shares you are expected to receive €61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ercros's pays a higher dividend yield than the bottom 25% of dividend payers in Spain (2.24%).
  • Ercros's dividend is below the markets top 25% of dividend payers in Spain (5.13%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BME:ECR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 76 Stocks 3.1%
Spain Market Average Dividend Yield Market Cap Weighted Average of 77 Stocks 4.4%
Spain Minimum Threshold Dividend Yield 10th Percentile 1.3%
Spain Bottom 25% Dividend Yield 25th Percentile 2.2%
Spain Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BME:ECR Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.06 1.00
2020-12-31 0.05 1.00
2019-12-31 0.00 1.00
BME:ECR Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-28 0.060 2.234
2018-02-28 0.050 1.223
2017-02-28 0.040 1.396

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Ercros has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ercros only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Ercros's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.4x coverage).
X
Income/ dividend checks
We assess Ercros's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ercros afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ercros has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ercros's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Antonio Marti
COMPENSATION €546,896
AGE 72
CEO Bio

Mr. Antonio Zabalza Martí has been the Chairman of the Board and Chief Executive Officer of Ercros, S.A. since 1996. Mr. Martí has acted as a consultant for the World Bank, the International Monetary Fund and the OECD. He served as the Head of the Electrical Appliances Sector of A. Palliser, S.A. Mr. Martí served as a Professor in the Economics Department of the London School of Economics. Since 1982, he has been professor of Economic Theory at the University of Valencia. From 1984 to 2005, Mr. Martí held important positions in the central government, including: Director General of Planning in the Spanish Treasury; Secretary General of Planning and Budgeting; Treasury Secretary of State and Director of the Prime Minister's Office. He served as a Director of Minas de Almadén and Transmediterránea from 1984 to 1987.He served as a Director of the Instituto Nacional de Industria from 1987 to 1988 and 1993 to 1995. He served as a Director of the Instituto de Crédito Oficial from 1987 to 1993. He served as a Director of Iberia from 1988 to 1993 and the Instituto Nacional de Hidrocarburos from 1993 to 1995. In 2005, he served as the Chairman of the Catalan Chemical Sector Trade Federation (Fedequim) and Vice-Chairman of the Spanish Chemical Industry Trade Federation (Feique). He holds a degree and doctorate in Economics from the University of Barcelona; MSc and PhD from the London School of Economics and was a Post-Doctoral Fellow at the University of Chicago. Since 1982, he has been professor of Economic Theory at the University of Valencia.

CEO Compensation
  • Antonio's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Antonio's remuneration is higher than average for companies of similar size in Spain.
Management Team

Antonio Marti

TITLE
Chairman & CEO
COMPENSATION
€547K
AGE
72

Pedro Rodríguez Sánchez

TITLE
Chief Financial Officer

Agustín Franco

TITLE
Chief Operating Officer
TENURE
1.7 yrs

Josep Rovira Pujals

TITLE
Director of Administration

Asunción Madoz

TITLE
Director of Legal Department

Joaquin Sanmartín Muñiz

TITLE
Director of Human Resources

Daniel Soria

TITLE
Non-Director Secretary
TENURE
3.1 yrs

Teresa Conesa Fábregues

TITLE
Director of the General Secretariat
Board of Directors Tenure

Average tenure and age of the Ercros board of directors in years:

3
Average Tenure
65
Average Age
  • The tenure for the Ercros board of directors is about average.
Board of Directors

Antonio Marti

TITLE
Chairman & CEO
COMPENSATION
€547K
AGE
72

Lourdes Fernández

TITLE
Independent Director
COMPENSATION
€43K
TENURE
3 yrs

Carme Josa

TITLE
Independent Director
COMPENSATION
€43K
TENURE
2.3 yrs

Laureano Roldán Aguilar

TITLE
External Director
COMPENSATION
€43K
AGE
56
TENURE
23.4 yrs

Eduardo Sánchez Morrondo

TITLE
External Director
COMPENSATION
€43K
AGE
65
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Ercros's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ercros has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Ercros, S.A. (BME:ECR): Does The -12% Earnings Drop Reflect A Longer Term Trend?

(BME:ECR) announced its most recent earnings (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 47%, indicating the rate at which ECR is growing has slowed down. … Ercros's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

Simply Wall St -

Ercros, S.A. (BME:ECR) Has Attractive Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a

Simply Wall St -

Could Ercros, S.A. (BME:ECR) Have The Makings Of Another Dividend Aristocrat?

Dividend paying stocks like Ercros, S.A. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … Some readers mightn't know much about Ercros's 2.0% dividend, as it has only been paying distributions for the last two years.

Simply Wall St -

Why Ercros, S.A. (BME:ECR) Looks Like A Quality Company

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Ercros has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Ercros, S.A.'s (BME:ECR) Interest Costs Too High?

(BME:ECR) with its market cap of €332m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

If You Had Bought Ercros (BME:ECR) Shares Five Years Ago You'd Have Made 562%

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Indeed, the Ercros share price has gained 467% in three years. … Arguably the share price is reflecting the earnings per share

Simply Wall St -

Why You Should Like Ercros, S.A.’s (BME:ECR) ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

One Thing To Remember About The Ercros, S.A. (BME:ECR) Share Price

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

What Kind Of Shareholders Own Ercros, S.A. (BME:ECR)?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of €407m, Ercros is a small cap stock, so it might not be well known by many institutional investors. … institutions are noticeable on the share registry.

Simply Wall St -

Something To Consider Before Buying Ercros, S.A. (BME:ECR) For The 1.4% Dividend

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Let's dig deeper into whether Ercros should have a place in your portfolio. … Check out our latest analysis for Ercros?

Simply Wall St -

Company Info

Description

Ercros, S.A. manufactures and sells basic chemicals, intermediate chemicals, and pharmaceuticals in Spain. It operates in three divisions: Chlorine Derivatives, Intermediate Chemicals, and Pharmaceuticals. The Chlorine Derivatives division produces ammonia, bioplastics, caustic potash and soda, chlorine, chloroisocyanurates, dicalcium phosphate, dichloroethane, hydrochloric acid, hydrogen peroxide, potassium carbonate, PVC compounds, sodium chlorate and chlorite, sodium hypochlorite, vinyl chloride monomer and polychloride, and trichloroisocyanuric acid. Its products are used as intermediates in other industrial processes to purify and treat drinking and waste water; treat and maintain swimming pool water; bleach fabrics and paper; produce solvents, detergents, and strippers; manufacture printing inks and coloring; produce compound feed and in cooling equipment; and others. The Intermediate Chemicals division provides formaldehyde, glues and resins, moulding compounds, paraformaldehyde, pentaerythritol and dipentaerythritol, and sodium formate for manufacturing resins, paints, varnishes, sockets and switches, tableware, health and packaging items, particles, and decorative laminated and plywood boards, as well as for use in the textile tanning industry. The Pharmaceuticals division focuses on the production of raw materials and intermediate pharmaceutical products of antibiotic, cholesterol-lowering, anti-ulcer, and anti-fungal products. Its products include amlodipine besylate, azithromycin, clarithromycin, erythromycins, famotidine, fosfomycin calcium and sodium, fosfomycin trometamol, and fusidic acid. The company exports its products to approximately 103 countries. Ercros, S.A. was founded in 1817 and is headquartered in Barcelona, Spain.

Details
Name: Ercros, S.A.
ECR
Exchange: BME
Founded: 1817
€210,762,581
106,284,711
Website: http://www.ercros.es
Address: Ercros, S.A.
Av. Diagonal, 593-595,
Barcelona,
Catalonia, 08014,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BME ECR Ordinary Shares Bolsas y Mercados Espanoles ES EUR 02. Jan 1992
DB CRS1 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0M0E Ordinary Shares London Stock Exchange GB EUR 02. Jan 1992
BATS-CHIXE ECRE Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1992
Number of employees
Current staff
Staff numbers
1,276
Ercros employees.
Industry
Commodity Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 21:32
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/04
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.