BME:ECR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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

Stable Share Price: ECR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

ECR

-3.4%

ES Chemicals

-5.7%

ES Market


1 Year Return

-9.1%

ECR

10.1%

ES Chemicals

-22.6%

ES Market

Return vs Industry: ECR underperformed the Spanish Chemicals industry which returned 10.1% over the past year.

Return vs Market: ECR exceeded the Spanish Market which returned -22.6% over the past year.


Shareholder returns

ECRIndustryMarket
7 Day-3.8%-3.4%-5.7%
30 Day-10.7%-0.1%-4.7%
90 Day4.0%8.9%-5.8%
1 Year-7.2%-9.1%13.6%10.1%-20.0%-22.6%
3 Year-30.6%-34.2%10.0%-0.7%-23.4%-30.5%
5 Year257.1%235.2%48.7%26.3%-11.2%-25.1%

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 compared to its fair value and its price relative to the market?

7.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECR (€1.83) is trading above our estimate of fair value (€1.31)

Significantly Below Fair Value: ECR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ECR is good value based on its PE Ratio (7.7x) compared to the XE Chemicals industry average (19.3x).

PE vs Market: ECR is good value based on its PE Ratio (7.7x) compared to the Spanish market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ECR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ECR is good value based on its PB Ratio (0.7x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECR's forecast earnings growth (5.4% per year) is above the savings rate (1.3%).

Earnings vs Market: ECR's earnings (5.4% per year) are forecast to grow slower than the Spanish market (31.5% per year).

High Growth Earnings: ECR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ECR's revenue (5.3% per year) is forecast to grow slower than the Spanish market (6.1% per year).

High Growth Revenue: ECR's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECR's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Ercros performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECR has a large one-off loss of €10.9M impacting its June 30 2020 financial results.

Growing Profit Margin: ECR's current net profit margins (4.1%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: ECR has become profitable over the past 5 years, growing earnings by 14.7% per year.

Accelerating Growth: ECR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ECR had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Chemicals industry average (-11.8%).


Return on Equity

High ROE: ECR's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Ercros's financial position?


Financial Position Analysis

Short Term Liabilities: ECR's short term assets (€188.9M) exceed its short term liabilities (€163.9M).

Long Term Liabilities: ECR's short term assets (€188.9M) exceed its long term liabilities (€149.9M).


Debt to Equity History and Analysis

Debt Level: ECR's debt to equity ratio (46.5%) is considered high.

Reducing Debt: ECR's debt to equity ratio has reduced from 89.7% to 46.5% over the past 5 years.

Debt Coverage: ECR's debt is well covered by operating cash flow (52.5%).

Interest Coverage: ECR's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECR's dividend (2.73%) is higher than the bottom 25% of dividend payers in the Spanish market (2.38%).

High Dividend: ECR's dividend (2.73%) is low compared to the top 25% of dividend payers in the Spanish market (6.65%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ECR has been paying a dividend for less than 10 years.

Growing Dividend: ECR's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), ECR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECR's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average board tenure


CEO

Antonio Zabalza Marti (74 yo)

no data

Tenure

€562,320

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

Compensation vs Market: Antonio's total compensation ($USD656.92K) is about average for companies of similar size in the Spanish market ($USD568.93K).

Compensation vs Earnings: Antonio's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Antonio Zabalza Marti
Chairman & CEOno data€562.32k0.088%
€ 183.0k
Laureano Roldán Aguilar
External Director24.67yrs€43.91k0.000090%
€ 187.9
Eduardo Sánchez Morrondo
External Director4.25yrs€43.91kno data
Joan Galofre
Directorno datano data4.82%
€ 10.1m
Lourdes Vega Fernández
Independent Director4.25yrs€43.91kno data
Carme Moragues Josa
Independent Director3.5yrs€43.91kno data

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: ECR's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.


Top Shareholders

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: €208.785m
  • Shares outstanding: 114.09m
  • 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 through three divisions: Chlorine Derivatives, Intermediate Chemicals, and Pharmaceuti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 04:27
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.