XRM  Xerium Technologies Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Textiles

Market Cap.

78.76M

Vuru Grade

13.92/100

Current Price

$4.82
+0.07 (+1.47%)

Company Metrics

  • P/E 7.65
  • P/S 0.16
  • P/B 6.71
  • EPS -1.77
  • Cash ROIC -0.99%
  • Cash Ratio 0.11
  • Dividend 0 / 0%
  • Avg. Vol. 58,835.00
  • Shares 16.34M
  • Market Cap. 78.76M

Company Description

Xerium Technologies, Inc. engages in the manufacture and supply of consumable products that are used in the production of paper primarily in North America, Europe, South America, and the Asia-Pacific. It operates in two segments: Clothing and Roll Covers. The Clothing segment manufactures clothing products, such as forming fabrics, press felts, and dryer fabrics that are used on paper-making machi... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Xerium Schedules Third Quarter 2017 Earnings Conference Call
Business Wire (press release) - Oct 16, 2017
YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE: XRM), a leading global provider of industrial consumable products and services, today announced that it plans to release its financial results for the third quarter 2017 after the ...
290196 Shares in Xerium Technologies, Inc. (XRM) Purchased by Rutabaga Capital ... - StockNewsTimes
Xerium: Highly Levered, But Paper Industry Is Better Placed
Seeking Alpha - Oct 18, 2016
Xerium Technologies (XRM) is a heavily levered micro-cap supplier of consumables used in paper manufacturing. Barely followed, it is hardly the kind of name that institutional investors find comfortable to own during difficult times, but with prospects ...
Anti-Xerium Technologies Inc Institutional Investors Sentiment Runs Low in 2017 Q2
Weekly Register - 14 hours ago
Xerium Technologies Inc (NYSE:XRM) institutional sentiment decreased to 0.81 in Q2 2017. Its down -0.32, from 1.13 in 2017Q1.
OxFORD Asset Management LLP Sells 35018 Shares of Xerium Technologies, Inc. (XRM) - TrueBlueTribune
Rutabaga Capital Management LLC MA Invests $2.09 Million in Xerium ... - StockNewsTimes
Xerium Technologies' (XRM) CEO Mark Staton on Q2 2017 Results - Earnings Call ...
Seeking Alpha - Jul 31, 2017
Xerium Technologies' (XRM) CEO Mark Staton on Q2 2017 Results - Earnings Call Transcript. Jul.31.17 ... Ladies and gentlemen, welcome to the Xerium Technologies 2017 Second Quarter Financial Results Conference Call. At this time, all ... As it relates ...
Xerium Technologies (XRM) Names Mark Staton President and CEO
StreetInsider.com - May 1, 2017
Xerium Technologies, Inc. (NYSE: XRM) announced today that the Company's Board of Directors has appointed Mark Staton President and Chief Executive Officer, replacing Harold Bevis, effective April 28, 2017.
Xerium Technologies Granted Patent for EnerVent Roll Cover Venting Technology
Business Wire (press release) - Jan 31, 2017
YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE: XRM), a leading producer of fabrics and roll covers used in the production of paper and packaging, nonwovens, and other industrial manufacturing processes, announced today that ...
Xerium Technologies' (XRM) CEO Mark Staton on Q1 2017 Results - Earnings Call ...
Seeking Alpha - May 1, 2017
We are confident that our repositioning efforts over the past five years on our improved financial performance, as evidenced in our first quarter 2017 financial results, have the company well positioned to continue to shift our focus away from large ...
Xerium Technologies' (XRM) CEO Harold Bevis on Q4 2016 Results - Earnings Call ...
Seeking Alpha - Mar 2, 2017
Xerium Technologies' (XRM) CEO Harold Bevis on Q4 2016 Results - Earnings Call Transcript. Mar. 2.17 | About: Xerium ... Ladies and gentlemen, welcome to the Xerium Technologies 2016 Fourth Quarter Financial Results Conference Call. At this time, all ...
Xerium Introduces Maximus Press Felt Technology Portfolio
Business Wire (press release) - Oct 12, 2017
YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE: XRM), a leading global provider of industrial consumable products and services, recently introduced Maximus - a totally new portfolio of press felt technology for today's most ...
Dividend Growth and Technical Update on Xerium Technologies, Inc. (NYSE:XRM)
Lenox Ledger - 9 hours ago
Xerium Technologies, Inc. (NYSE:XRM) currently has a 10-year dividend growth rate of -0.99900. This number is calculated using the geometric average which provides the typical value of dividend growth over the specified period using the product of ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for XRM to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate XRM's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$4.82 Current Price

$-0.01 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$228.44 Book Price

Undervalued by 4,639.46%


Very Poor Cash Return on Invested Capital over the past 5 years

XRM has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

XRM has lost $0.99 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 17.62M -8.03M -38.33M -19.71M 22.80M
divided by
Invested Capital 477.12M 484.33M 481.94M 431.80M 412.49M
Cash ROIC 3.69% -1.66% -7.95% -4.56% 5.53%

Poor Return on Equity over the past 5 years

XRM has shown an inability to deliver strong results for shareholders. This could be due to poor management, XRM operating in a highly competitive industry, or having a weak business in general.

XRM has only generated $- of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -18.04M 4.15M -7.38M -4.38M -21.62M
divided by
Stockholders' Equity -29.06M -11.45M -74.11M -113.07M -146.91M
Return on Equity - - - - -

Mediocre Business Performance over the past 10 years

XRM isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

XRM has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 41.16M 38.04M -3.40M -7.19M 15.05M 17.62M -8.03M -38.33M -19.71M 22.80M

Very Weak Balance Sheet

XRM is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of XRM's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 24.22M 34.73M 23.04M 38.70M 43.57M 34.78M 25.72M 9.52M 9.84M 12.81M
Current Assets 286.34M 234.11M 216.41M 247.96M 239.90M 220.85M 221.47M 200.32M 173.62M 174.41M
Total Assets 891.44M 811.57M 693.51M 700.14M 665.72M 618.84M 624.06M 594.04M 550.37M 541.91M
Current Liabilities 768.02M 175.90M 713.58M 102.34M 91.10M 106.95M 114.02M 102.59M 108.74M 116.62M
Total Liabilities 892.49M 839.15M 813.17M 681.41M 668.03M 647.90M 635.51M 668.15M 663.44M 688.82M
Stockholder' Equity -1.05M -27.58M -119.66M 18.74M -2.31M -29.06M -11.45M -74.11M -113.07M -146.91M
Current Ratio 0.37 1.33 0.30 2.42 2.63 2.06 1.94 1.95 1.60 1.50
TL-to-TA 1.00 1.03 1.17 0.97 1.00 1.05 1.02 1.12 1.21 1.27

Low or No Reinvestment of Profits over the past 10 years

XRM has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to XRM operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -245.51M -218.92M -330.91M -403.99M -395.80M -413.84M -409.69M -417.07M -421.45M -443.07M
Retained Earnings Growth - 10.83% -51.16% -22.09% 2.03% -4.56% 1.00% -1.80% -1.05% -5.13%

Loss Making Entity over the past 10 years

XRM has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$6.40 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -150.21M 26.60M -111.99M -73.09M 8.19M -18.04M 4.15M -7.38M -4.38M -21.62M
divided by
Revenue 615.43M 638.14M 500.09M 548.33M 586.96M 538.74M 546.89M 542.93M 477.24M 471.32M
Net Profit Margin -24.41% 4.17% -22.39% -13.33% 1.40% -3.35% 0.76% -1.36% -0.92% -4.59%

Varying Pricing Power over the past 10 years

XRM has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$44.51 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 253.51M 243.67M 187.50M 214.38M 574.86M 193.57M 209.64M 215.77M 188.73M 177.48M
divided by
Revenue 615.43M 638.14M 500.09M 548.33M 586.96M 538.74M 546.89M 542.93M 477.24M 471.32M
Gross Margin 41.19% 38.18% 37.49% 39.10% 97.94% 35.93% 38.33% 39.74% 39.55% 37.66%

High Capital Intensity over the past 10 years

XRM spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

525.96% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 47.86M 39.03M 19.53M 27.93M 30.15M 21.71M 44.15M 45.22M 50.87M 13.71M
divided by
Net Income -150.21M 26.60M -111.99M -73.09M 8.19M -18.04M 4.15M -7.38M -4.38M -21.62M
Capital Expenditure Ratio -31.86% 146.74% -17.44% -38.21% 368.18% -120.35% 1,062.97% -612.54% -1,161.44% -63.40%

Inconsistent Dividend History over the past 10 years

XRM has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 11.78M - - - - - - - - -
divided by
Shares Outstanding 2.24M 2.31M 2.45M 10.02M 15.08M 15.22M 15.88M 15.46M 15.64M 15.99M
Dividend Paid Per Share 5.27 - - - - - - - - -
Price at Year End 105.60 12.80 16.80 16.05 6.54 3.05 15.41 15.90 11.88 5.62
Dividend Yield 4.99% - - - - - - - - -

History of Stock Buybacks over the past 10 years

XRM has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 2.24M 2.31M 2.45M 10.02M 15.08M 15.22M 15.88M 15.46M 15.64M 15.99M
Stock Bought Back - -3.14% -5.54% -75.59% -33.58% -0.91% -4.16% 2.74% -1.16% -2.21%
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