Eisen- und Hüttenwerke AG :EIS-DE: Earnings Analysis: For the six months ended March 31, 2017 : May 30, 2017

Eisen- und Hüttenwerke AG reports financial results for the half-year ended March 31, 2017.

We analyze the earnings along side the following peers of Eisen- und Hüttenwerke AG – Salzgitter AG and SKW Stahl-Metallurgie Holding AG (SZG-DE and SK1A-DE) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of EUR 0.14 million, Net Earnings of EUR 0.15 million.
  • Year-on-year change in operating cash flow of 23.59% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • One-time items weakened operating performance.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2017-03-31 2016-09-30 2016-03-31 2015-09-30 2015-03-31
Relevant Numbers (Semi-Annual)
Revenues 0.14 0.14 0.14 0.14 0.14
Revenue Growth (YOY) 3.6 3.6 2.96 3.73 2.27
Earnings 0.15 21.96 0.39 17.51 0.31
Earnings Growth (YOY) -60.72 25.4 26.06 13.59 -15.66
Net Margin 105.56 15246.53 278.42 12595.68 227.41
EPS 0.01 1.25 0.02 0.99 0.02
Return on Equity 0.21 30.45 0.55 25.51 0.45
Return on Assets 0.2 29.92 0.54 25.01 0.45

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Market Share Versus Profits

Revenues History
Earnings History

EIS-DE‘s change in revenue this period compared to the same period last year of 3.60% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that EIS-DE is holding onto its market share. Also, for comparison purposes, revenues changed by 0% and earnings by -99.31% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

EIS-DE‘s change in operating cash flow of 23.59% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

Margins

The expansion in operating (EBIT) margins from -256.83% to -254.86% has also impacted the company’s earnings growth. However, one-time items have been a drag on the operating performance. As a result, the company’s pretax margins contracted from 387.05% to 145.83%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

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Company Profile

Eisen- und Hüttenwerke AG engages in acquisition, management, and sale of investments in companies that manufactures and processes iron, steel as well as other metals and materials. The company was founded in 1918 and is headquartered in Andernach, Germany.

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