Eramet SA (ERA) AI Stock Analysis

• Market Cap: €2.07B
• Dividend Yield: 2.83%
• Average Volume (3M): 41.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• 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: 43,349
• 30 Day Avg. Volume: 41,061
• 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: €54.00
• Price Target Upside: -26.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €70.00 ▼(-4.57% Downside)

The score is held back primarily by strained financial performance (declining revenue, very thin margins, high leverage, and persistently negative free cash flow). Technicals are supportive due to a strong uptrend and positive MACD, but overbought RSI/Stochastic readings add pullback risk. Valuation is mixed: a negative P/E reduces confidence in earnings-based valuation despite a modest dividend yield.

Positive Factors

High gross profit margin

A ~58% gross margin indicates Eramet captures substantial value at the production/processing level, reflecting cost advantages or strong product pricing. This structural margin buffer can absorb commodity volatility and supports the potential for durable operating leverage if overheads are controlled.

Diversified business model including recycling

Eramet’s mix of extraction, metallurgy and recycling plus long-term industrial contracts reduces reliance on spot cycles. Recycling provides alternate feedstock and sustainability alignment, while contracts smooth demand—structural features that support more predictable revenue and strategic resilience.

Position in essential metals for growth industries

Exposure to nickel and manganese ties Eramet to long-term structural demand drivers (automotive, energy systems, aerospace). This end-market linkage supports medium-term demand visibility and strategic relevance, underpinning the company’s role in critical industrial supply chains.

Negative Factors

Sustained revenue decline

Consecutive annual revenue declines reduce scale, compress margins and limit reinvestment capacity. Over several quarters this trend can indicate weakening market position or demand loss, making it harder to cover fixed costs and sustain long-term growth without strategic corrective actions.

Persistently negative free cash flow

Two years of negative free cash flow and a large year-over-year deterioration signal poor cash conversion and mounting liquidity strain. This undermines capacity to fund capex, deleverage, or invest in growth without external financing, elevating structural funding and execution risk.

High leverage and low return on equity

Elevated debt relative to equity and a very low ROE imply the company is capital-intensive but not generating commensurate returns. High leverage increases vulnerability to commodity or rate shocks and constrains strategic flexibility, while low ROE signals inefficiency in deploying shareholder capital.

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 generates revenue through multiple streams, primarily by extracting and processing minerals and metals. The company profits from the sale of its core products, including nickel and manganese alloys, which are sold to manufacturers across various industries. Additionally, Eramet benefits from its recycling operations, which allow it to recover valuable metals from waste materials. Key revenue streams include long-term contracts with industrial customers and spot market sales, allowing the company to capitalize on fluctuating metal prices. Partnerships with other mining firms and collaboration with customers in the automotive and aerospace sectors also contribute to its earnings, as these alliances help Eramet secure stable demand for its products.

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: Positive
• Last Price: 73.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ERA, the sentiment is Positive. The current price of 73.35 is above the 20-day moving average (MA) of 59.32, above the 50-day MA of 55.43, and above the 200-day MA of 51.93, indicating a bullish trend. The MACD of 5.70 indicates Negative momentum. The RSI at 85.93 is Negative, neither overbought nor oversold. The STOCH value of 98.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ERA.

Eramet SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VK	66 Neutral	€3.96B	11.06	16.47%	9.68%	-15.12%	-10.10%
AKE	62 Neutral	€4.05B	28.26	2.27%	7.05%	-2.71%	-57.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NK	56 Neutral	€2.13B	-12.60	-5.29%	6.28%	-7.71%	-451.19%
ERA	53 Neutral	€2.07B	-21.61	-7.36%	2.83%	-6.91%	-222.35%