ERAMET Investors, You Need to Know This

Today we're going to take a closer look at Mid-Cap Basic Materials company ERAMET, whose shares are currently trading at $90.62. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:

ERAMET S.A. operates as a mining and metallurgical company in France, Asia, Europe, North America, and internationally. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 10.03 and an average price to book (P/B) ratio of 2.08. In contrast, ERAMET has a trailing 12 month P/E ratio of 2.7 and a P/B ratio of 1.36.

ERAMET has moved -2735.9% over the last year compared to 1412.7% for the S&P 500 — a difference of -4149.0%. ERAMET has a 52 week high of $124.75 and a 52 week low of $66.75.

Wider Gross Margins Than the Industry Average of 32.76%:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $3,683 $3,553 $3,668 $5,014
Gross Margins 15.3% 55.3% 66.7% 64.8%
Operating Margins 6.6% 1.2% 20.8% 25.4%
Net Margins -5.0% -19.0% 8.12% 14.76%
Net Income (MM) -$184 -$675 $298 $740
Net Interest Expense (MM) -119 -122 -121 -96
Net Interest Expense (MM) -$119 -$122 -$121 -$96
Depreciation & Amort. (MM) -$313 -$754 -$142 -$489
Earnings Per Share -$6.93 -$25.46 $10.37 $33.67
EPS Growth n/a -267.39% 140.73% 224.69%
Diluted Shares (MM) 27 27 29 29
Free Cash Flow (MM) -$370 -$33 $331 $461
Capital Expenditures (MM) -$456 -$342 -$312 -$530
Net Current Assets (MM) -$1,668 -$2,009 -$1,791 -$932
Current Ratio 1.65 2.3 1.45 1.58
Long Term Debt (MM) $1,558 $2,830 $1,578 $1,393
Net Debt / EBITDA 3.34 5.13 1.91 0.51

ERAMET benefits from growing revenues and increasing reinvestment in the business, exceptional EPS growth, and a pattern of improving cash flows. The company's financial statements show low leverage and wider gross margins than its peer group. However, the firm has weak operating margins with a positive growth rate. Finally, we note that ERAMET has a decent current ratio.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.