Eramet SA (ERA) AI Stock Analysis

• Market Cap: €1.41B
• Dividend Yield: 2.83%
• Average Volume (3M): 41.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -6.91%
• EPS Growth: -222.35%
• Country: FR
• Employees: 8,770
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -11.35
• Shares Outstanding: 28,755,047
• 10 Day Avg. Volume: 43,349
• 30 Day Avg. Volume: 41,061
• PEG Ratio: <0.01
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -2.10
• 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: €52.00
• Price Target Upside: -5.88% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): -4.36
• Revenue Forecast (FY): €3.58B

• Rating: 41 Neutral
• Price Target: €47.00 ▼(-14.93% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily constrained by weak financial performance, marked by a post-2022 earnings downturn, higher leverage risk in 2025, and sustained negative operating/free cash flow. Technicals are mixed but lean bearish due to a negative MACD and price below key short-term moving averages. Valuation is held back by a negative P/E (loss-making), partly offset by a moderate dividend yield.

Positive Factors

Integrated value chain (mining to processing)

Eramet’s vertical integration from ore extraction through processing and refining gives durable operational control. Owning processing steps supports cost management, product quality and higher-value sales (alloys, refined nickel), reinforcing margin resilience and supply security over the medium term.

Consistent gross margins

Reported solid gross margins across 2023–2025 indicate underlying production economics remain favorable. Strong gross margins provide a cushion against input cost swings, preserve unit profitability, and give management room to restore operating margins without requiring immediate structural changes.

Exposure to energy-transition metals

Eramet’s product mix—nickel, manganese and mineral sands—maps to secular demand from batteries, alloys and industrial applications. This structural exposure supports longer-term demand and potential premium pricing versus commodity peers, bolstering volume and product-mix tailwinds over coming months.

Negative Factors

Earnings deterioration and net loss

Earnings swung from prior profits to a sizable net loss in 2025 with repeated negative operating margins. Sustained losses erode equity, limit internal funding for operations and investments, raise refinancing and covenant risks, and reduce strategic flexibility until profitability is restored.

Persistent negative operating and free cash flow

Operating cash flow turned negative in 2024–2025 and free cash flow has been negative since 2023. Persistent cash burn forces reliance on external financing or asset sales, constraining capex, dividends and strategic investment, and elevating liquidity and solvency risk in the medium term.

Rising leverage and weakened balance sheet

Debt increased relative to equity in 2025 while equity declined, leaving a more fragile balance sheet. Higher leverage increases interest and refinancing burdens, reduces financial flexibility, and amplifies downside from commodity volatility unless management can deleverage or recapitalize.

Eramet SA Business Overview & Revenue Model

Company Description

ERAMET S.A. operates as a mining and metallurgical company worldwide. The company extracts and processes manganese ore, nickel ore, and mineral sands. It also produces ferronickel, high purity nickel metal, nickel salts, nickel and cobalt chlorides, nickel carbonate, nickel ferroalloys, and other metallic salts used in stainless steel, catalysis and pigments, and alloy steel and casting; manganese alloys, such as high-carbon ferromanganese, silicomanganese, low and medium-carbon ferromanganese, and low-carbon silicomanganese for use in batteries, fertilizers, pigments, different reagents, construction, and automotive industries; and mineral sands, such as titanium dioxide, high-purity pig iron, zircon, and ilmenite used in ceramics and pigments. In addition, it operates Moanda mine in Gabon; nickel mines in New Caledonia and Indonesia; and mineral sand mine in Senegal and Argentina. ERAMET S.A. was incorporated in 1880 and is headquartered in Paris, France.

How the Company Makes Money

Eramet primarily makes money by producing and selling mined and processed metals and mineral products to industrial customers, with revenues largely linked to volumes sold and prevailing commodity prices. Its main revenue streams typically include: (1) Manganese: sale of manganese ore and manganese-based products (including manganese alloys used mainly in steelmaking), where earnings depend on global steel demand, alloy demand, and manganese price dynamics; (2) Nickel: sale of nickel products (including nickel for batteries and specialty alloys), where earnings depend on nickel market prices, customer contract structures, and the product mix between higher value-added and more standard nickel products; (3) Mineral sands: sale of mineral sands concentrates/products (such as titanium and zircon-bearing materials) used in pigments, ceramics, and other industrial applications, with profitability influenced by end-market construction/industrial cycles and product pricing; and (4) services and other: to the extent applicable, contributions from logistics/transport, marketing/trading, and other support activities tied to moving and selling its commodities. Across these segments, operating profit is driven by the spread between realized selling prices and the company’s cost base (mining, energy, processing, labor, logistics), as well as operational performance (ore grades, recovery rates, plant uptime) and currency movements (because many commodity sales are priced in U.S. dollars while costs can be incurred in other currencies). Material partnerships and joint ventures can also affect earnings through equity-accounted results or consolidated sales depending on the ownership structure, but specific partner details are null.

Eramet SA Financial Statement Overview

Summary

Financials are weak overall: revenue and profitability deteriorated after 2022, with a sizable net loss in 2025 and negative operating margins in 2023 and 2025. Balance sheet risk increased as equity fell and leverage rose in 2025. Cash flow is the biggest concern, with negative operating cash flow in 2024–2025 and consistently negative free cash flow since 2023, despite solid gross margins.

Income Statement

Eramet’s revenue base has been volatile, with strong growth in 2021–2022 followed by declines in 2023–2025. Profitability also deteriorated sharply: the company moved from healthy profits in 2021–2022 to much weaker results in 2023–2024 and a sizable net loss in 2025, with negative operating profit margins in 2023 and 2025. A key positive is consistently solid gross margin (particularly 2023–2025), but it has not translated into stable operating or bottom-line profitability, indicating pressure from operating costs, pricing, or non-operating items.

Balance Sheet

Leverage is a clear constraint. Debt relative to equity increased meaningfully in 2025 (after improvement in 2023–2024), and equity fell substantially versus prior years, which amplifies financial risk. Returns on equity swung from very strong in 2021–2022 to modest in 2023–2024 and deeply negative in 2025, reflecting the earnings downturn and weaker capital base. While total assets remain sizable, the balance sheet profile is currently more fragile due to the combination of higher leverage and depressed profitability.

Cash Flow

Cash generation has weakened materially: operating cash flow turned negative in 2024 and 2025, and free cash flow has been consistently negative since 2023 (and deeply negative in 2024–2025). The company produced strong positive free cash flow in 2021–2022, but that strength has not persisted, suggesting heavier spending and/or weaker operating performance. Although 2025 free cash flow improved versus 2024, cash flow remains a major concern given ongoing cash burn.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.75B	2.93B	3.34B	5.01B	3.71B
Gross Profit	1.47B	1.71B	2.00B	1.23B	762.00M
EBITDA	138.00M	231.00M	209.00M	1.32B	1.15B
Net Income	-477.00M	14.00M	109.00M	740.00M	298.00M
Balance Sheet
Total Assets	5.88B	6.46B	6.28B	7.28B	6.35B
Cash, Cash Equivalents and Short-Term Investments	591.00M	913.00M	1.61B	1.66B	1.18B
Total Debt	2.52B	2.22B	2.23B	2.00B	2.11B
Total Liabilities	4.39B	4.48B	4.28B	5.04B	4.91B
Stockholders Equity	718.00M	1.44B	1.60B	1.78B	1.01B
Cash Flow
Free Cash Flow	-785.00M	-812.00M	-423.00M	428.00M	461.00M
Operating Cash Flow	-313.00M	-125.00M	172.00M	1.02B	773.00M
Investing Cash Flow	-136.00M	-306.00M	-557.00M	-538.00M	-421.00M
Financing Cash Flow	437.00M	-12.00M	269.00M	-60.00M	-1.03B

Eramet SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 55.25 is above the 20-day moving average (MA) of 54.80, below the 50-day MA of 64.77, and below the 200-day MA of 55.84, indicating a bearish trend. The MACD of -3.20 indicates Positive momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 15.92 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
VK	73 Outperform	€4.61B	10.37	21.20%	9.68%	-15.12%	-10.10%
AKE	62 Neutral	€3.86B	62.51	2.27%	7.05%	-2.71%	-57.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NK	47 Neutral	€1.78B	-4.95	-11.01%	6.28%	-7.71%	-451.19%
ERA	41 Neutral	€1.41B	-1.27	-7.36%	2.83%	-6.91%	-222.35%