Announcing: ERAMET (EPA:ERA) Stock Increased An Energizing 128% In The Last Year

By
Simply Wall St
Published
July 24, 2021
ENXTPA:ERA
Source: Shutterstock

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example ERAMET S.A. (EPA:ERA). Its share price is already up an impressive 128% in the last twelve months. It's also up 26% in about a month. On the other hand, longer term shareholders have had a tougher run, with the stock falling 21% in three years.

Check out our latest analysis for ERAMET

Because ERAMET made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

ERAMET actually shrunk its revenue over the last year, with a reduction of 3.1%. We're a little surprised to see the share price pop 128% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
ENXTPA:ERA Earnings and Revenue Growth July 24th 2021

This free interactive report on ERAMET's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that ERAMET has rewarded shareholders with a total shareholder return of 128% in the last twelve months. That gain is better than the annual TSR over five years, which is 17%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. You could get a better understanding of ERAMET's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FR exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.