OTCPK:ERMA.F

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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: ERMA.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

ERMA.F

0.5%

US Metals and Mining

-3.8%

US Market


1 Year Return

n/a

ERMA.F

-31.0%

US Metals and Mining

-15.9%

US Market

Return vs Industry: Insufficient data to determine how ERMA.F performed against the US Metals and Mining industry.

Return vs Market: Insufficient data to determine how ERMA.F performed against the US Market.


Shareholder returns

ERMA.FIndustryMarket
7 Day0%0.5%-3.8%
30 Day-3.5%-20.2%-17.4%
90 Dayn/a-30.9%-24.1%
1 Yearn/a-29.0%-31.0%-14.1%-15.9%
3 Yearn/a-24.8%-29.2%10.0%2.8%
5 Yearn/a-3.0%-11.0%27.6%13.5%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERMA.F ($32.75) is trading below our estimate of fair value ($131.68)

Significantly Below Fair Value: ERMA.F is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: ERMA.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ERMA.F is good value based on its PB Ratio (0.5x) compared to the US Metals and Mining industry average (1x).


Next Steps

Future Growth

How is ERAMET forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

100.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERMA.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: ERMA.F's revenue (5% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: ERMA.F's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERMA.F's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has ERAMET performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERMA.F is currently unprofitable.

Growing Profit Margin: ERMA.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ERMA.F is unprofitable, but has reduced losses over the past 5 years at a rate of 41.1% per year.

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

Earnings vs Industry: ERMA.F is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-22.3%).


Return on Equity

High ROE: ERMA.F has a negative Return on Equity (-8.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is ERAMET's financial position?


Financial Position Analysis

Short Term Liabilities: ERMA.F's short term assets (€2.7B) exceed its short term liabilities (€1.6B).

Long Term Liabilities: ERMA.F's short term assets (€2.7B) do not cover its long term liabilities (€2.7B).


Debt to Equity History and Analysis

Debt Level: ERMA.F's debt to equity ratio (128.1%) is considered high.

Reducing Debt: ERMA.F's debt to equity ratio has increased from 47% to 128.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ERMA.F's debt is covered by short term assets (assets are 1.3x 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 ERMA.F has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ERMA.F 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?

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ERMA.F's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: ERMA.F's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: ERMA.F's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Christel Bories (55yo)

2.92s

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 ($USD3.34M) is about average for companies of similar size in the US market ($USD3.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christel Bories
Chairman2.92yrs€3.10m0.00038% 3.0k
Thomas Devedjian
Deputy Director General of Finance and Digital Transformation4.17yrs€1.01mno data
Philippe Gundermann
Executive Vice President of Strategy2.25yrs€667.23kno data
Jean de L'Hermite
Group General Counsel2.83yrs€442.16kno data
Virginie De Chassey
Executive VP of Communication & Sustainable Development1.5yrs€201.44kno data
Jérôme Fabre
Deputy CEO of High Performance Alloys Division0.92yr€735.17kno data
Kléber Silva
Deputy CEO of the Mining and Metals Divisionno data€1.49mno data
Anne-Marie Maignan
Group Executive Vice-President of Human Resources0.25yrno datano data
Marcel Abéké
CEO of Comilog Gabon and Deputy Delegate CEO of the Manganese Divisionno datano datano data
Hervé Montégu
Senior Vice President of Lithium Activities1.25yrsno datano data

1.9yrs

Average Tenure

50yo

Average Age

Experienced Management: ERMA.F's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christel Bories
Chairman2.92yrs€3.10m0.00038% 3.0k
Joseph Chang
Chairman of Eramet China and Chief Executive Officer of Eramet Chinano datano datano data
Claude Tendil
Director6.92yrs€60.00k0.00038% 3.0k
Louis Mapou
Independent Director1.92yrs€13.88k0.00037% 2.9k
Cyrille Duval
Representative Director8.92yrs€79.00k0.023% 181.0k
Yves Rambaud
Honory Chairmanno datano datano data
Manoelle Lepoutre
Independent Director8.92yrs€47.50k0.00038% 3.0k
Daniel Signoret
Borad Observer7.75yrsno datano data
Michel Antsélévé
Director6.92yrs€41.65k0.00038% 3.0k
Maria Maes
Independent Director3.92yrs€69.00k0.00038% 3.0k

6.9yrs

Average Tenure

62yo

Average Age

Experienced Board: ERMA.F's board of directors are considered experienced (6.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: ERAMET S.A.
  • Ticker: ERMA.F
  • Exchange: OTCPK
  • Founded: 1880
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: €735.043m
  • Listing Market Cap: €793.012m
  • Shares outstanding: 26.46m
  • 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 processes manganese ore, nickel ore, mineral sands, and lithium. It also produces ferronickel, high purity nickel, nickel slats, and other metallic salts used in stainless steel, nickel-based alloys, electroplating, catalysis, electronics, pigments, waste-water treatment, and pharmacy products; and manganese alloys, such as high-carbon ferromanganese, silicomanganese, low and medium-carbon ferromanganese, and low-carbon silicomanganese for use in steel products, alkaline batteries and accumulators, fertilizers and animal feeds, electronic components, and surface treating of metals and pigments. This division operates Moanda mine in Gabon; five nickel mines in New Caledonia; one mineral sand mine in Senegal; and lithium deposit in Argentina. The High Performance Alloys division produces special steels and super alloys for the aeronautics and power generation sectors; die-forged parts and rolled and forged products; long or flat products; and metal powders to aerospace, energy, land and sea transportation, industry, and specialty markets. This segment also engages in battery, catalyst, and metal oxide recycling; and titanium recycling activities. ERAMET S.A. was founded in 1880 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 01:05
End of Day Share Price2020/03/26 00:00
Earnings2019/12/31
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.