Ercros SA (ECR) AI Stock Analysis

• Market Cap: €313.63M
• Dividend Yield: 2.27%
• Average Volume (3M): 68.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -0.39%
• EPS Growth: -440.04%
• Country: ES
• Employees: 1,318
• Sector: General
• Sector Strength: N/A
• 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: -0.02
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 15.65
• 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: 40 Underperform
• Price Target: €3.00 ▼(-12.54% Downside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

Ercros SA receives a low score primarily due to fundamental deterioration, evidenced by widening losses, margin compression, and increasing leverage. Valuation is a major drag given the lack of profitability. While technical indicators show the stock holding long-term support and positive cash flow exists, the prevailing negative trend and poor income profile dominate the rating.

Positive Factors

Diversified end-markets

Ercros sells chlorine/caustic and active pharmaceutical ingredients across varied industries. This product and end-market diversity supports revenue resilience over cycles, allowing the company to shift focus between industrial and pharma demand and reduce single-market dependence.

Proven cash generation

Positive operating and free cash flow in 2025 shows the business can convert operations into liquidity, supporting capex, working capital and deleveraging. While cash flow has been volatile, demonstrated periodic strong conversion is a durable support for financial flexibility.

Balance sheet not extremely leveraged

Although leverage increased, having debt still below equity provides a measurable cushion vs highly leveraged peers. That capital structure headroom supports refinancing and operational stability, helping absorb further cyclical stress without immediate solvency risk.

Negative Factors

Deteriorating profitability

A sustained swing into losses erodes retained earnings, restricts reinvestment and weakens competitiveness. Persistent negative operating profit reduces ability to fund R&D, maintenance and strategic initiatives, making recovery more difficult and increasing reliance on external financing.

Revenue decline

A multiyear revenue downtrend signals structural demand, pricing or market-share challenges. Falling top-line undermines fixed-cost absorption and scale advantages, pressuring margins and cash flow consistency and making margin recovery contingent on reversing the underlying revenue weakness.

Weakened balance sheet trend

Rising leverage alongside declining equity reduces financial flexibility and increases vulnerability to shocks. Even if absolute debt is below equity, the negative trajectory raises refinancing, covenant and cost-of-capital risks, constraining strategic investments over the medium term.

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

The company faces severe headwinds with a 4.25% revenue decline and a collapse in Gross Profit Margin to 9.4%, resulting in a significant Net Loss. While Operating Cash Flow remains positive at $49.2M, providing a liquidity buffer, the deteriorating balance sheet and negative Return on Equity (-18.7%) heavily impact the score.

Income Statement

The company's income profile faces significant headwinds, evidenced by a continued decline in revenue (-4.25%) and a widening Net Loss of $53.6M. Most concerning is the collapse in Gross Profit Margin, which fell sharply to 9.4% from historical levels of ~30%, indicating severe pressure on pricing or input costs. EBITDA margins have also compressed to nearly 1%, reflecting a struggle to cover operating expenses efficiently.

Balance Sheet

The balance sheet strength is deteriorating as the company increases leverage to manage its operations. Total Debt has risen to $230.8M, pushing the Debt-to-Equity ratio to 0.80, a significant jump from 0.36 just two years prior. Additionally, Stockholders' Equity has eroded due to recurring losses, resulting in a concerning negative Return on Equity (ROE) of -18.7%.

Cash Flow

Despite the poor income statement performance, cash flow generation remains a relative bright spot. Operating Cash Flow rebounded significantly to $49.2M, and the company returned to positive Free Cash Flow ($20M) after a negative performance in the previous period. This suggests that while profitability is down, the company is managing working capital effectively or incurring significant non-cash charges that shield liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	626.82M	667.41M	725.29M	998.53M	772.32M
Gross Profit	58.99M	200.63M	230.62M	305.94M	246.80M
EBITDA	6.25M	25.91M	43.27M	121.71M	90.85M
Net Income	-53.59M	-11.66M	27.59M	62.99M	43.30M
Balance Sheet
Total Assets	694.30M	699.19M	683.32M	746.55M	709.96M
Cash, Cash Equivalents and Short-Term Investments	96.03M	31.49M	39.15M	55.48M	50.30M
Total Debt	223.06M	172.34M	131.25M	135.43M	120.00M
Total Liabilities	396.07M	358.03M	320.20M	385.84M	378.34M
Stockholders Equity	287.25M	341.16M	363.12M	360.71M	331.61M
Cash Flow
Free Cash Flow	20.04M	-4.04M	17.30M	35.80M	47.42M
Operating Cash Flow	49.19M	9.51M	51.14M	62.99M	60.32M
Investing Cash Flow	-29.15M	-26.67M	-33.84M	-52.81M	-34.24M
Financing Cash Flow	40.04M	14.33M	-35.91M	-21.45M	-14.68M

Ercros SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.43 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 3.37, and above the 200-day MA of 3.07, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, 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
ACX	58 Neutral	€2.89B	-78.76	-0.23%	4.82%	-3.02%	43.07%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ECR	40 Underperform	€313.63M	-5.85	-20.66%	2.27%	-0.39%	-440.04%