Ernst Russ AG (ERAG) AI Stock Analysis

• Market Cap: €249.30M
• Dividend Yield: 2.87%
• Average Volume (3M): 4.65K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.71
• Revenue Growth: -19.51%
• EPS Growth: -13.66%
• Country: DE
• Employees: 72
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.47
• Shares Outstanding: 33,689,312
• 10 Day Avg. Volume: 4,348
• 30 Day Avg. Volume: 4,651
• PEG Ratio: -0.19
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 2.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: €9.00 ▲(26.40% Upside)

Ernst Russ AG's strong financial performance and attractive valuation are the primary drivers of its high stock score. The technical analysis supports a positive outlook, although caution is advised due to potential overbought conditions. The absence of recent earnings call data and corporate events does not impact the overall assessment.

Positive Factors

Balance sheet strength

A high equity ratio and low leverage reduce refinancing and solvency risk in shipping's capital-intensive environment. This durable financial strength gives flexibility for dry-dockings, opportunistic vessel purchases, and weathering charter-rate downturns without forcing distress asset sales.

Improving free cash flow

A recovery to positive free cash flow indicates the business is generating internal funds to cover capex and working capital. Sustainable cash generation supports reinvestment, dividend capacity and reduces dependence on external financing through shipping cycles, strengthening long-term resilience.

Integrated fleet ownership and ship-management

Vertical integration of asset ownership and recurring ship-management services provides diversified, fee-based revenue alongside charter income. This business mix can smooth earnings over cycles, capture more margin per vessel, and deepen client relationships, supporting durable cash flows.

Negative Factors

Recent revenue decline

A near-term revenue contraction of ~19% signals exposure to weaker charter markets or lower utilization. If sustained, declining top-line pressures margin coverage and limits reinvestment, making revenue recovery and multi-period growth planning more uncertain over the medium term.

Volatile operating profitability

A reported zero EBIT suggests recent operational strain or offsetting non-operating items. Low or volatile operating profits undermine the company's ability to consistently fund maintenance capex and dividends from operations and increase reliance on asset sales or one-offs to meet earnings targets.

Earnings tied to cyclical asset gains

Reliance on performance-related asset sales and charter-rate cycles introduces structural earnings volatility. Even with recurring management fees, material swings from vessel disposals or charter resets can distort profitability and complicate long-term cash flow predictability and planning.

Ernst Russ AG Business Overview & Revenue Model

Company Description

Ernst Russ AG is a publicly owned investment manager. It invest in shipping, alternative investments, real estate, private equity and renewable energy. Within ship participation, the firm invests in part-owning ships and funds for ship participation and dormant investments with conversion options. In property investment funds, it seeks to invest in closed ended property investment funds. Within private equity the firm seeks to invest in private equity and venture capital funds. It also invests in real estate investments. Ernst Russ AG formerly known as HCI Capital AG. Ernst Russ AG was founded in 1985 and is based in Hamburg, Germany.

How the Company Makes Money

Ernst Russ AG generates revenue through multiple channels, primarily focused on asset and investment management in the maritime industry. Key revenue streams include fees from ship management services, income generated from chartering vessels, and returns from investments in maritime assets. The company also benefits from strategic partnerships with shipping companies and financial institutions, which enhance its market position and broaden its investment opportunities. Additionally, Ernst Russ AG capitalizes on its expertise in logistics and real estate, diversifying its income portfolio and providing a stable financial foundation.

Ernst Russ AG Financial Statement Overview

Summary

Ernst Russ AG presents a strong financial profile with robust revenue growth and operational efficiency. The balance sheet is solid with low leverage, and cash flow metrics highlight efficient cash management. Despite some volatility in net profit margins and EBIT, the company is well-positioned within the marine shipping industry.

Income Statement

Ernst Russ AG has demonstrated strong revenue growth over the years. The gross profit margin improved significantly with a slight dip in the latest year but remains robust. The net profit margin has shown volatility, with a decrease in the latest year. EBIT was zero in the most recent report, suggesting possible operational challenges, but EBITDA margin remains healthy, indicating good operational efficiency.

Balance Sheet

The company maintains a solid equity position, with a high equity ratio and low debt-to-equity ratio, indicating financial stability. The return on equity remains strong, although it has decreased from previous years. Overall, Ernst Russ AG displays a stable balance sheet with low leverage, reducing financial risks.

Cash Flow

Ernst Russ AG has shown remarkable growth in free cash flow, recovering from negative values in prior years to positive in the latest report. The operating cash flow to net income ratio remains strong, suggesting efficient cash generation from operations. However, the fluctuations in free cash flow might indicate some volatility in capital expenditures or operational adjustments.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Ernst Russ AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ERAG, the sentiment is Neutral. The current price of 7.12 is below the 20-day moving average (MA) of 7.50, below the 50-day MA of 7.16, and above the 200-day MA of 6.81, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:ERAG.

Ernst Russ AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERAG	78 Outperform	€249.30M	4.67	28.74%	2.87%	-19.51%	-13.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HHFA	63 Neutral	€2.22B	50.12	5.78%	0.47%	13.44%	113.13%