BME:ECR

Stock Analysis Report

Executive Summary

Ercros, S.A. manufactures and sells basic chemicals, intermediate chemicals, and pharmaceuticals in Spain.

Snowflake

Fundamentals

Very undervalued with adequate balance sheet.

Risks

  • Ercros is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Ercros's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

BME:ECR

-0.7%

ES Chemicals

-0.3%

ES Market


1 Year Return

-58.9%

BME:ECR

-7.8%

ES Chemicals

-3.9%

ES Market

ECR underperformed the Chemicals industry which returned -7% over the past year.

ECR underperformed the Market in Spain which returned -3.9% over the past year.


Share holder returns

ECRIndustryMarket
7 Day-1.4%-0.7%-0.3%
30 Day18.6%5.7%2.7%
90 Day-1.1%-0.4%-2.0%
1 Year-58.0%-58.9%-4.1%-7.8%-0.7%-3.9%
3 Year22.0%16.9%25.9%14.7%15.3%4.7%
5 Year336.3%318.2%43.9%22.8%1.2%-17.9%

Price Volatility Vs. Market

How volatile is Ercros's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Ercros is good value based on expected growth next year.


Price Based on Value of Assets

Ercros is good value based on assets compared to the Europe Chemicals industry average.


Next Steps

Future Growth

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

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ercros's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Ercros's earnings are expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).

Ercros's revenue growth is positive but not above the Spain market average.

Ercros's earnings growth is expected to exceed the Spain market average.

Ercros's earnings growth is expected to exceed the low risk savings rate of 1.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Ercros is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ercros performed over the past 5 years?

40.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Ercros has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ercros used its assets less efficiently than the Europe Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Ercros's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ercros's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Ercros's level of debt (62%) 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 (90.8% vs 62% today).

Debt is not well covered by operating cash flow (16%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

1.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ercros's pays a higher dividend yield than the bottom 25% of dividend payers in Spain (2.03%).

Ercros's dividend is below the markets top 25% of dividend payers in Spain (5.35%).

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 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Antonio Zabalza Marti (73yo)

0yrs

Tenure

€546,896

Compensation

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  ...


CEO Compensation Analysis

Antonio's remuneration is higher than average for companies of similar size in Spain.

Antonio's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.3yrs

Average Tenure

66yo

Average Age

The tenure for the Ercros board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Antonio Zabalza Marti (73yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €546.90k
  • Teresa Conesa Fábregues

    Director of the General Secretariat

    • Tenure: 0yrs
  • Pedro Rodríguez Sánchez

    Chief Financial Officer

    • Tenure: 0yrs
  • Josep Rovira Pujals

    Director of Administration

    • Tenure: 0yrs
  • Joaquin Sanmartín Muñiz

    Director of Human Resources

    • Tenure: 0yrs
  • Agustín Blasco Franco

    Chief Operating Officer

    • Tenure: 1.9yrs
  • Daniel Soria

    Non-Director Secretary

    • Tenure: 3.3yrs
  • Asunción Loste Madoz

    Director of Legal Department

    • Tenure: 0yrs

Board Members

  • Laureano Roldán Aguilar (57yo)

    External Director

    • Tenure: 23.7yrs
    • Compensation: €43.39k
  • Antonio Zabalza Marti (73yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €546.90k
  • Eduardo Sánchez Morrondo (66yo)

    External Director

    • Tenure: 3.3yrs
    • Compensation: €43.39k
  • Lourdes Vega Fernández

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: €43.39k
  • Carme Moragues Josa

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: €43.39k

Company Information

Ercros, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ercros, S.A.
  • Ticker: ECR
  • Exchange: BME
  • Founded: 1817
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: €217.176m
  • Shares outstanding: 104.92m
  • Website: https://www.ercros.es

Number of Employees


Location

  • Ercros, S.A.
  • Av. Diagonal, 593-595
  • Barcelona
  • Catalonia
  • 8014
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECRBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1992
CRS1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0M0ELSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
ECREBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 21:08
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.