Eramet SA Cash And Equivalents vs. Return On Asset

ERMAY Stock  USD 5.46  0.24  4.21%   
Based on the key profitability measurements obtained from Eramet SA's financial statements, Eramet SA ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Eramet SA's ability to earn profits and add value for shareholders.
For Eramet SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eramet SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eramet SA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eramet SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eramet SA ADR over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Eramet SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eramet SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eramet SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Eramet SA ADR Return On Asset vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Eramet SA's current stock value. Our valuation model uses many indicators to compare Eramet SA value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15MALRFIPGDFIIDDYILKAFNICMFAUMTFERMAY -0.15-0.10-0.0500.050.100.15 0500M1B1.5B2B2.5B
Eramet SA ADR is rated # 2 in cash and equivalents category among its peers. It also is rated # 2 in return on asset category among its peers . The ratio of Cash And Equivalents to Return On Asset for Eramet SA ADR is about  9,429,657,795 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Eramet SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Eramet SA's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Eramet Return On Asset vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Eramet SA

Cash

 = 

Bank Deposits

+

Liquidities

 = 
1.24 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Eramet SA

Return On Asset

 = 

Net Income

Total Assets

 = 
0.13
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Eramet Return On Asset Comparison

0.13150.15820.08430.0584100%
Eramet SA is currently under evaluation in return on asset category among its peers.

Eramet SA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Eramet SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eramet SA will eventually generate negative long term returns. The profitability progress is the general direction of Eramet SA's change in net profit over the period of time. It can combine multiple indicators of Eramet SA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
ERAMET S.A. operates as a mining and metallurgical company worldwide. ERAMET S.A. was incorporated in 1880 and is headquartered in Paris, France. Eramet Sa operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange. It employs 13500 people.

Eramet Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Eramet SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Eramet SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Eramet SA's important profitability drivers and their relationship over time.

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Use Investing Themes to Complement your Eramet SA position

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FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 69 constituents at this time.
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Additional Tools for Eramet Pink Sheet Analysis

When running Eramet SA's price analysis, check to measure Eramet SA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Eramet SA is operating at the current time. Most of Eramet SA's value examination focuses on studying past and present price action to predict the probability of Eramet SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eramet SA's price. Additionally, you may evaluate how the addition of Eramet SA to your portfolios can decrease your overall portfolio volatility.