Ercros SA (ECR) AI Stock Analysis

• Market Cap: €304.48M
• Dividend Yield: 2.34%
• Average Volume (3M): 68.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -0.39%
• EPS Growth: -440.04%
• Country: ES
• Employees: 1,318
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): N/A
• Shares Outstanding: 91,436,195
• 10 Day Avg. Volume: 92,838
• 30 Day Avg. Volume: 68,826
• PEG Ratio: 0.19
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -79.81
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €3.00 ▼(-12.28% Downside)

Ercros SA's overall stock score is driven by significant financial challenges, including declining revenues and negative cash flow. While technical indicators show positive momentum, the overbought signals suggest caution. The valuation is hampered by negative earnings, despite a modest dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Sustainability and Innovation

Ercros's focus on sustainability and innovation positions it well for long-term growth, aligning with global trends towards environmentally friendly practices.

Diverse Revenue Streams

The company's diverse revenue streams across chemicals, pharmaceuticals, and plastics provide resilience against sector-specific downturns, supporting stable long-term growth.

Strategic Partnerships

Strategic partnerships enhance Ercros's market position and product offerings, fostering innovation and expanding market reach, which are crucial for sustained competitive advantage.

Negative Factors

Declining Revenue

Declining revenue and negative profitability indicate operational challenges, which could hinder Ercros's ability to invest in growth and maintain competitive positioning.

Negative Cash Flow

Negative cash flow limits Ercros's ability to fund operations and investments, posing risks to financial stability and long-term growth potential.

Increased Leverage

Increased leverage can strain Ercros's financial flexibility, making it more vulnerable to economic downturns and limiting its capacity to pursue strategic opportunities.

Ercros SA Business Overview & Revenue Model

Company Description

Ercros, S.A. manufactures and sells basic chemicals, intermediate chemicals, and pharmaceuticals in Spain. It operates through three segments: Chlorine Derivatives, Intermediate Chemicals, and Pharmacy. The Chlorine Derivatives segment produces ammonia, bioplastics, caustic potash and soda, chlorine, chloroisocyanurates, dicalcium phosphate, dichloroethane, hydrochloric acid, hydrogen peroxide, potassium carbonate, PVC compounds, sodium chlorate and chlorite, sodium hypochlorite, and vinyl chloride monomers. This segment's products are used as intermediates in other industrial processes to purify and treat drinking and waste water; treat and maintain swimming pool water; bleach fabrics and paper; produce solvents, detergents, and strippers; manufacture printing inks and coloring; to produce compound feed and in cooling equipment. The Intermediate Chemicals segment provides formaldehyde, glues and resins, molding powders, paraformaldehyde, pentaerythritol and dipentaerythritol, and sodium formate for manufacturing chipboards, and decorative laminates and plywoods, as well as resins, paints, and varnishes in the furniture and decoration industry; plugs and switches in the electrical components sector; and household, sanitary, and packaging materials in the textile tanning industry. The Pharmacy division engages in the production of raw materials and intermediate products from antibiotic, cholesterol-lowering, anti-ulcer, and anti-fungal agents. This segment's products include amlodipine besylate, azithromycin, clarithromycin, erythromycins, famotidine, calcium and sodium fosfomycin, fosfomycin trometamol, and fusidic acid. The company is also involved in exporting activities. Ercros, S.A. was founded in 1817 and is headquartered in Barcelona, Spain.

How the Company Makes Money

Ercros generates revenue through the production and sale of its chemical products, with significant income derived from the Chlor-Alkali segment, particularly chlorine and caustic soda, which are used in numerous industrial applications. The Pharmaceuticals and Fine Chemicals segment contributes to revenue through the sale of active pharmaceutical ingredients and specialized chemical products. Key revenue streams include bulk sales to industrial customers and contracts with pharmaceutical companies. Additionally, Ercros may engage in strategic partnerships and collaborations within the chemical and pharmaceutical sectors to enhance its product offerings and market reach, further driving its earnings.

Ercros SA Financial Statement Overview

Summary

Ercros SA is facing significant operational and financial challenges, with declining revenues and profitability. The income statement shows an 8% drop in revenue, negative EBIT, and net income. The balance sheet indicates moderate stability but increased leverage concerns. Cash flow is particularly troubling, with operating cash flow dropping to zero and negative free cash flow, 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	654.61M	667.41M	725.29M	998.53M	772.32M	568.80M
Gross Profit	184.71M	200.63M	230.62M	305.94M	246.80M	220.46M
EBITDA	-3.03M	25.91M	43.27M	121.71M	90.85M	42.11M
Net Income	-42.32M	-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: Positive
• Last Price: 3.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 3.42 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 2.98, and above the 200-day MA of 2.93, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 66.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ECR.

Ercros SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ACX	56 Neutral	€2.91B	32.73	3.97%	4.86%	-3.02%	43.07%
ECR	52 Neutral	€304.48M	-7.39	-12.69%	2.34%	-0.39%	-440.04%