ENXTPA:ERA

Stock Analysis Report

Executive Summary

ERAMET S.A. operates as a mining and metallurgical company worldwide.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ERA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.6%

ERA

-7.9%

FR Metals and Mining

-0.4%

FR Market


1 Year Return

-43.4%

ERA

-29.2%

FR Metals and Mining

17.8%

FR Market

Return vs Industry: ERA underperformed the French Metals and Mining industry which returned -29.2% over the past year.

Return vs Market: ERA underperformed the French Market which returned 17.8% over the past year.


Shareholder returns

ERAIndustryMarket
7 Day-10.6%-7.9%-0.4%
30 Day-12.7%-6.2%3.8%
90 Day4.4%-0.3%8.7%
1 Year-42.8%-43.4%-27.9%-29.2%21.8%17.8%
3 Year-24.4%-26.5%-61.4%-62.4%48.8%34.6%
5 Year-44.8%-46.3%-68.9%-70.8%65.5%42.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ERAMET undervalued compared to its fair value and its price relative to the market?

0.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ERA (€42.42) is trading above our estimate of fair value (€27.75)

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


Price To Earnings Ratio

PE vs Industry: ERA is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: ERA is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ERA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ERA is good value based on its PB Ratio (0.7x) compared to the FR Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is ERAMET forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

63.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

Earnings vs Market: ERA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ERA's is expected to become profitable in the next 3 years.

Revenue vs Market: ERA's revenue (4.7% per year) is forecast to grow faster than the French market (4.7% per year).

High Growth Revenue: ERA's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERA's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has ERAMET performed over the past 5 years?

45.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERA has high quality earnings.

Growing Profit Margin: ERA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ERA is unprofitable, but has reduced losses over the past 5 years at a rate of 45.1% per year.

Accelerating Growth: Unable to compare ERA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ERA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-9.3%).


Return on Equity

High ROE: ERA has a negative Return on Equity (-1.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ERAMET's financial position?


Financial Position Analysis

Short Term Liabilities: ERA's short term assets (€3.0B) exceeds its short term liabilities (€1.4B)

Long Term Liabilities: ERA's short term assets (€3.0B) exceeds its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: ERA's debt to equity ratio (112.9%) is considered high.

Reducing Debt: ERA's debt to equity ratio has increased from 43.2% to 112.9% over the past 5 years.


Balance Sheet

Inventory Level: ERA has a high level of physical assets or inventory.

Debt Coverage by Assets: ERA's debt is covered by short term assets (assets are 1.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if ERA has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ERA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.41%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%4.5%industryaverage6.8%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: ERA's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.5%).

High Dividend: ERA's dividend (1.41%) is low compared to the top 25% of dividend payers in the French market (4.52%).


Stability and Growth of Payments

Stable Dividend: ERA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ERA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: ERA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ERA's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Christel Bories (55yo)

2.5yrs

Tenure

€3,098,793

Compensation

Ms. Christel Bories has been the Chairman and Chief Executive Officer of ERAMET S.A. since May 23, 2017 and its President since June 2018. Ms. Bories served as the Deputy Chief Executive Officer of Ipsen S ...


CEO Compensation Analysis

Compensation vs Market: Christel's total compensation ($USD3.42M) is above average for companies of similar size in the French market ($USD1.14M).

Compensation vs Earnings: Christel's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: ERA's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

62yo

Average Age

Experienced Board: ERA's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Christel Bories (55yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: €3.10m
  • Cyrille Duval (71yo)

    Representative Director

    • Tenure: 8.5yrs
    • Compensation: €79.00k
  • Marcel Abéké

    CEO of Comilog Gabon and Deputy Delegate CEO of the Manganese Division

    • Tenure: 0yrs
  • Thomas Devedjian (48yo)

    Deputy Director General of Finance and Digital Transformation

    • Tenure: 3.8yrs
    • Compensation: €1.01m
  • Philippe Gundermann

    Executive Vice President of Strategy

    • Tenure: 1.8yrs
    • Compensation: €667.23k
  • Michel Carnec

    Executive Senior Vice-President of Human Resources

    • Tenure: 0yrs
    • Compensation: €792.22k
  • Virginie De Chassey (50yo)

    Executive VP of Communication & Sustainable Development

    • Tenure: 1.1yrs
    • Compensation: €201.44k
  • Jean de L’Hermite

    Group General Counsel

    • Tenure: 2.4yrs
    • Compensation: €442.16k
  • Jérôme Fabre

    Deputy CEO of High Performance Alloys Division

    • Tenure: 0.5yrs
    • Compensation: €735.17k
  • Kléber Silva

    Deputy CEO of the Mining and Metals Division

    • Tenure: 0yrs
    • Compensation: €1.49m

Board Members

  • Christel Bories (55yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: €3.10m
  • Claude Tendil (74yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: €60.00k
  • Louis Mapou (61yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: €13.88k
  • Cyrille Duval (71yo)

    Representative Director

    • Tenure: 8.5yrs
    • Compensation: €79.00k
  • Yves Rambaud (84yo)

    Honory Chairman

    • Tenure: 0yrs
  • Joseph Chang

    Chairman of Eramet China and Chief Executive Officer of Eramet China

    • Tenure: 0yrs
  • Manoelle Lepoutre (60yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: €47.50k
  • Daniel Signoret

    Borad Observer

    • Tenure: 7.3yrs
  • Michel Antsélévé (54yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: €41.65k
  • Miriam Maes (63yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: €69.00k

Company Information

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


Key Information

  • Name: ERAMET S.A.
  • Ticker: ERA
  • Exchange: ENXTPA
  • Founded: 1880
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: €1.126b
  • Shares outstanding: 26.54m
  • Website: https://www.eramet.com

Number of Employees


Location

  • ERAMET S.A.
  • 10, Boulevard de Grenelle
  • CS 63205
  • Paris
  • Ile-de-France
  • 75015
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERMA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1994
ERAENXTPA (Euronext Paris)YesOrdinary SharesFREUROct 1994
0MGVLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1994
ER7DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1994
ERAPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1994
ERMA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

ERAMET S.A. operates as a mining and metallurgical company worldwide. The company operates through two divisions, Mining and Metals, and High Performance Alloys. The Mining and Metals extracts and processe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 20:41
End of Day Share Price2019/11/22 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.