Ercros SA (ECR) AI Stock Analysis

• Market Cap: €212.13M
• Dividend Yield: 2.98%
• Average Volume (3M): 68.83K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.20
• Revenue Growth: -0.39%
• EPS Growth: -440.04%
• Country: ES
• Employees: 1,318
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.32
• Shares Outstanding: 91,436,195
• 10 Day Avg. Volume: 92,838
• 30 Day Avg. Volume: 68,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: €2.50 ▼(-4.21% Downside)

Ercros SA's overall stock score is primarily impacted by its weak financial performance, with declining revenues, profitability, and negative cash flow generation posing significant risks. The technical analysis provides mixed signals, while the valuation is constrained by negative earnings despite a reasonable dividend yield.

Ercros SA Business Overview & Revenue Model

Company Description

Ercros SA (ECR) is a Spanish chemical company engaged in the production of a diverse range of chemical products across various sectors, including the chemical, pharmaceutical, and plastics industries. The company operates primarily through three business divisions: Chemicals, which produces caustic soda, chlorine, and other chemical derivatives; Pharmaceuticals, focusing on active pharmaceutical ingredients; and Plastics, which manufactures polyvinyl chloride (PVC) and other plastic materials. Ercros is committed to sustainability and innovation, aiming to provide high-quality products while minimizing environmental impact.

How the Company Makes Money

Ercros generates revenue through the sale of its chemical products, pharmaceuticals, and plastics. The Chemicals division is a major revenue driver, leveraging the production of essential chemical compounds that are in demand in various industries. The Pharmaceuticals division contributes by supplying active ingredients to the pharmaceutical sector, which is characterized by long-term contracts and stable demand. Additionally, the Plastics division benefits from the demand for PVC and other plastic products in construction and manufacturing. Ercros also engages in strategic partnerships and collaborations with other companies to enhance its product offerings and expand its market reach, further contributing to its revenue streams.

Ercros SA Financial Statement Overview

Summary

Ercros SA faces significant operational and financial challenges, with declining revenues, negative profitability, and increased leverage. The negative cash flow generation further exacerbates these issues, indicating potential liquidity constraints.

Income Statement

Ercros SA's income statement shows declining revenues and profitability. Revenue dropped by 8% from the previous year, and the company reported a negative EBIT and net income, indicating operational and financial challenges. Margins have significantly deteriorated, with a gross profit margin of approximately 33.7% but a concerning negative net profit margin. The declining revenue growth and negative profitability highlight potential issues in the company's core operations, affecting its ability to generate consistent profit.

Balance Sheet

The balance sheet reflects moderate financial stability with an equity ratio of 48.8%, indicating a balanced approach between equity and liabilities. However, the debt-to-equity ratio increased to 0.51, which suggests potential leverage concerns. The return on equity is negative due to net losses, which raises concerns regarding shareholders' returns. While the company maintains a reasonable asset base, the increased leverage and negative return may limit future financial flexibility.

Cash Flow

Ercros SA's cash flow statement shows a significant decline in cash generation, with operating cash flow dropping to zero. The free cash flow has turned negative, reflecting difficulties in covering capital expenditures. The absence of operating cash flow to net income and free cash flow to net income ratios further illustrates challenges in converting revenues into cash, which could constrain the company's investment and debt servicing abilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	499.29M	667.41M	725.29M	998.53M	772.32M	568.80M
Gross Profit	133.98M	200.63M	230.62M	305.94M	246.80M	220.46M
EBITDA	-6.40M	25.91M	43.27M	121.71M	90.85M	42.11M
Net Income	-33.13M	-11.66M	27.59M	62.99M	43.30M	6.26M
Balance Sheet
Total Assets	740.17M	699.19M	683.32M	746.55M	709.96M	590.22M
Cash, Cash Equivalents and Short-Term Investments	86.12M	31.49M	39.15M	55.48M	50.30M	38.25M
Total Debt	232.26M	172.34M	131.25M	135.43M	120.00M	131.41M
Total Liabilities	428.61M	358.03M	320.20M	385.84M	378.34M	306.00M
Stockholders Equity	311.56M	341.16M	363.12M	360.71M	331.61M	284.21M
Cash Flow
Free Cash Flow	-8.60M	-4.04M	17.30M	35.80M	47.42M	63.46M
Operating Cash Flow	16.31M	9.51M	51.14M	62.99M	60.32M	74.59M
Investing Cash Flow	-24.91M	-26.67M	-33.84M	-52.81M	-34.24M	-34.01M
Financing Cash Flow	51.35M	14.33M	-35.91M	-21.45M	-14.68M	-61.27M

Ercros SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ECR, the sentiment is Neutral. The current price of 2.61 is above the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.66, and below the 200-day MA of 2.96, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:ECR.

Ercros SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACX	64 Neutral	€2.81B	31.04	3.97%	4.86%	-3.02%	43.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ECR	46 Neutral	€212.13M	23.88	-12.69%	2.98%	-0.39%	-440.04%