Ercros
🇪🇸 ECR.MC · Madrid · ES0125140A14
Materials
EUR 3.42 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2025-12-31
Why N/A?
EPS (TTM) = -0.59 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 17.5
Based on analyst estimates
Reference: Provider P/E (Forward): 17.5
Net Debt/EBITDA (TTM)
20.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
-17.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
64.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Ercros is a European chemical manufacturer operating in a highly cyclical and severely distressed market environment. The combination of seven consecutive quarters of net losses, a highly distressed Net Debt/EBITDA ratio of 20.3x, and recent severe dividend cuts makes this company fundamentally incompatible with a stable income strategy. Not recommended for new positions given the ongoing earnings collapse and structural industry headwinds.
Sector Context
Ercros is a Spanish chemical manufacturer that produces basic chemicals, plastics, and pharmaceuticals. The basic chemical sector is highly cyclical and vulnerable to fluctuating energy costs and global commodity pricing, making it generally unsuitable for conservative dividend strategies that require stable, predictable cash flows.
Temporary Opportunity Identified
Severe cyclical downturn in the European chemical sector compounded by structural headwinds like high energy costs and non-EU competition.
📊 Strategy Analysis
- • Maintains a manageable Debt/Equity ratio of 0.78x despite the prolonged earnings downturn.
- • Generates positive free cash flow of €22 million, providing some liquidity buffer during the current crisis.
⚠ What to Watch
- • Fundamentally misaligned with the strategy's focus on stable essential services, operating as a cyclical price-taker with seven consecutive quarters of net losses.
- • Earnings collapse has driven Net Debt/EBITDA to a highly distressed level of 20.33x, severely breaching conservative leverage thresholds.
- • The dividend was severely cut by 34.5% in 2024 due to significant business decline and failure to meet internal shareholder remuneration conditions.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.