Eramet SA (ERA) AI Stock Analysis

• Market Cap: €1.52B
• Dividend Yield: 2.85%
• Average Volume (3M): 52.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: -6.91%
• EPS Growth: -222.35%
• Country: FR
• Employees: 8,770
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -5.32
• Shares Outstanding: 28,755,047
• 10 Day Avg. Volume: 42,522
• 30 Day Avg. Volume: 52,762
• PEG Ratio: -1.26
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -1.90
• 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: €48.00
• Price Target Upside: -21.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -3.51
• Revenue Forecast (FY): €3.19B

• Rating: 46 Neutral
• Price Target: €52.00 ▼(-15.03% Downside)

Eramet SA's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's high leverage, declining revenue, and negative cash flow are significant risks. Additionally, the negative P/E ratio and bearish market momentum further contribute to the low score.

Positive Factors

Strategic Partnerships

Strategic partnerships and joint ventures provide Eramet with expanded market access and improved operational efficiency, supporting long-term growth.

Sustainable Mining Practices

Eramet's commitment to sustainable mining aligns with global environmental trends, potentially enhancing its reputation and market appeal over the long term.

High Gross Profit Margin

A strong gross profit margin indicates efficient production processes and pricing power, contributing to potential profitability improvements.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting Eramet's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Negative cash flow challenges Eramet's liquidity, potentially impacting its ability to fund operations and invest in future growth.

Declining Revenue

Declining revenue suggests weakening market demand or competitive pressures, which could hinder Eramet's long-term financial performance.

Eramet SA Business Overview & Revenue Model

Company Description

Eramet SA (ERA) is a global mining and metallurgy company headquartered in Paris, France. It specializes in the extraction and processing of metals, particularly nickel, manganese, and other alloys. The company operates in two primary sectors: Mining and Alloys. Eramet is involved in the production of high-grade nickel used in batteries and stainless steel, as well as manganese products that are essential for steelmaking. Through its operations in various countries, Eramet aims to leverage its expertise in metallurgy to provide sustainable solutions for the evolving demands of the global market.

How the Company Makes Money

Eramet generates revenue primarily through the sale of its mining products, including nickel and manganese ores, as well as refined metals and alloys. The company benefits from long-term contracts with major customers in the automotive and steel industries, which provide stable revenue streams. Additionally, Eramet has established strategic partnerships and joint ventures that enhance its market reach and operational efficiency. The demand for nickel, particularly in electric vehicle batteries, has also contributed to revenue growth, alongside fluctuations in global metal prices, which impact profitability. The company's focus on sustainable mining practices and reducing its carbon footprint further positions it favorably in a market increasingly driven by environmental considerations.

Eramet SA Financial Statement Overview

Summary

Eramet SA's financial health is under strain, with declining revenue, low profitability margins, high leverage, and negative cash flow, indicating significant financial instability.

Income Statement

The income statement for Eramet SA shows significant volatility. The Gross Profit Margin for 2024 is approximately 58.45%, which is relatively strong, but the Net Profit Margin is only 0.48%, indicating challenges in translating revenue into net income. Revenue has decreased for two consecutive years, with a notable decline of 12.19% from 2023 to 2024. The EBIT Margin is low at 1.74%, and although the EBITDA Margin is better at 7.88%, these figures suggest profitability issues. Overall, while the company has a solid Gross Profit Margin, declining revenue and profitability margins are concerning.

Balance Sheet

Eramet SA's balance sheet presents mixed results. The Debt-to-Equity Ratio for 2024 is approximately 1.54, indicating a high level of debt relative to equity, which could expose the company to financial risk. The Return on Equity (ROE) is quite low at 0.97%, reflecting inefficiencies in generating profits from shareholder equity. The Equity Ratio stands at 22.28%, suggesting a lower reliance on equity financing. While the company maintains substantial total assets, the high leverage and low ROE are potential red flags.

Cash Flow

The cash flow analysis reveals significant challenges for Eramet SA. The company has experienced negative Free Cash Flow for the past two years, with a concerning decline of 52.06% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is negative, highlighting cash generation issues relative to reported profits. The Free Cash Flow to Net Income Ratio is also negative, suggesting that the company struggles to convert income into cash flow. These factors indicate that the company might face liquidity issues and difficulty in funding operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.93B	3.34B	5.01B	3.71B	2.81B
Gross Profit	972.00M	1.71B	2.00B	1.23B	762.00M	255.00M
EBITDA	242.00M	231.00M	209.00M	1.32B	1.15B	262.00M
Net Income	-97.00M	14.00M	109.00M	740.00M	298.00M	-675.00M
Balance Sheet
Total Assets	6.15B	6.46B	6.28B	7.28B	6.35B	6.62B
Cash, Cash Equivalents and Short-Term Investments	746.00M	913.00M	1.61B	1.66B	1.18B	1.81B
Total Debt	2.47B	2.22B	2.23B	2.00B	2.11B	3.19B
Total Liabilities	4.39B	4.48B	4.28B	5.04B	4.91B	5.49B
Stockholders Equity	1.04B	1.44B	1.60B	1.78B	1.01B	725.00M
Cash Flow
Free Cash Flow	-656.00M	-812.00M	-423.00M	428.00M	461.00M	-4.00M
Operating Cash Flow	-54.00M	-125.00M	172.00M	1.02B	773.00M	309.00M
Investing Cash Flow	-221.00M	-306.00M	-557.00M	-538.00M	-421.00M	-375.00M
Financing Cash Flow	-208.00M	-12.00M	269.00M	-60.00M	-1.03B	969.00M

Eramet SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.20
• 50DMA: Negative
• 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 FR:ERA, the sentiment is Negative. The current price of 61.2 is above the 20-day moving average (MA) of 59.09, above the 50-day MA of 55.42, and above the 200-day MA of 51.60, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 34.74 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ERA.

Eramet SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKE	64 Neutral	€3.74B	17.26	3.56%	7.01%	-2.71%	-57.63%
VK	64 Neutral	€3.89B	10.87	16.47%	9.03%	-15.12%	-10.10%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NK	52 Neutral	€1.77B	-10.59	-5.29%	6.91%	-7.71%	-451.19%
ERA	46 Neutral	€1.52B	―	-7.36%	2.85%	-6.91%	-222.35%