XRM  Xerium Technologies Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Textiles

Market Cap.

85.62M

Vuru Grade

14.92/100

Current Price

$5.31
+0.02 (+0.38%)

Company Metrics

  • P/E 7.65
  • P/S 0.18
  • P/B 6.71
  • EPS -1.19
  • Cash ROIC -1.53%
  • Cash Ratio 0.09
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 33,386.00
  • Shares 16.12M
  • Market Cap. 85.62M

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

Trading Covered Calls: Xerium Technologies Inc (NYSE:XRM) : Using Covered ...
CML News - Jan 24, 2017
As we look at Xerium Technologies Inc we note that a covered call is one of the most common implementations of an option strategy, but the analysis completed when employing the covered call often times lacks the necessary rigor especially surrounding ...
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 ...
News Xerium Technologies Inc.XRM
Wall Street Journal - Feb 11, 2011
News Xerium Technologies Inc.XRM. Significant News Only. 12/16/16; Press Release. Xerium Announces Exchange Offer to Exchange Its Unregistered 9.500% Senior Secured Notes Issued in August 2016 for Registered 9.500% Senior Secured Notes.
Xerium Technologies Inc. to close Virginia manufacturing plant
Triangle Business Journal - Oct 16, 2015
Youngsville-based Xerium Technologies Inc. (NYSE: XRM) says it will close its roll manufacturing plant in Middletown, Virginia, by March 2016.
Stock Returns: Gencor Industries Inc (NASDAQ:GENC) is Beating Xerium ...
CML News - Feb 24, 2017
This is a snapshot to compare the stock returns for Gencor Industries Inc (NASDAQ:GENC) versus Xerium Technologies Inc (NYSE:XRM) .
Xerium Technologies, Inc. Announces Pricing of Senior Secured Notes Offering
Business Wire (press release) - Jul 27, 2016
YOUNGSVILLE, N.C.--(BUSINESS WIRE)--Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, today announced the pricing of its $480 million aggregate principal amount of 9.500% Senior ...
Xerium Technologies (XRM) Misses Q1 EPS by 23c; Acquires JJ Plank Corporation
StreetInsider.com - May 4, 2016
Xerium Technologies also announced that it has acquired the business of J.J. Plank Corporation, including its Spencer Johnston brand spreader roll line and related family of product lines for $18 million, comprised of $16.25 million in cash at closing ...
Xerium Technologies (XRM) Says Second Process to Market Company is Unnecessary
StreetInsider.com - Apr 1, 2016
Xerium Technologies, Inc. (“Xerium” or the “Company”) has received inquiries from certain investors regarding whether the Board of Directors (the “Board”) is considering a process to sell the Company.
Xerium Technologies' (XRM) CEO Harold Bevis on Q3 2016 Results - Earnings Call ...
Seeking Alpha - Oct 28, 2016
Ladies and gentlemen, welcome to the Xerium Technologies 2016 Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode.
Xerium Technologies Inc Stock Volatility Hits An Amplified Level
CML News - Feb 22, 2017
This is a proprietary realized volatility rating created by Capital Market Laboratories (CMLviz) based on a large number of data interactions for Xerium Technologies Inc (NYSE:XRM) . We examine the little used gem of daily stock volatility over a 20 ...
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.

$5.31 Current Price

$-14.88 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$163.77 Book Price

Undervalued by 2,984.15%


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 $1.53 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 15.05M 17.62M -8.03M -38.33M -19.71M
divided by
Invested Capital 531.06M 477.12M 484.33M 481.94M 431.80M
Cash ROIC 2.83% 3.69% -1.66% -7.95% -4.56%

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
20112012201320142015
Net Income 8.19M -18.04M 4.15M -7.38M -4.38M
divided by
Stockholders' Equity -2.31M -29.06M -11.45M -74.11M -113.07M
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
2006200720082009201020112012201320142015
Free Cash Flow 36.78M 41.16M 38.04M -3.40M -7.19M 15.05M 17.62M -8.03M -38.33M -19.71M

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
2006200720082009201020112012201320142015
Cash 16.82M 24.22M 34.73M 23.04M 38.70M 43.57M 34.78M 25.72M 9.52M 9.84M
Current Assets 254.06M 286.34M 234.11M 216.41M 247.96M 239.90M 220.85M 221.47M 200.32M 173.62M
Total Assets 990.73M 891.44M 811.57M 693.51M 700.14M 665.72M 618.84M 624.06M 594.04M 550.37M
Current Liabilities 109.03M 768.02M 175.90M 713.58M 102.34M 91.10M 106.95M 114.02M 102.59M 108.74M
Total Liabilities 874.15M 892.49M 839.15M 813.17M 681.41M 668.03M 647.90M 635.51M 668.15M 663.44M
Stockholder' Equity 116.58M -1.05M -27.58M -119.66M 18.74M -2.31M -29.06M -11.45M -74.11M -113.07M
Current Ratio 2.33 0.37 1.33 0.30 2.42 2.63 2.06 1.94 1.95 1.60
TL-to-TA 0.88 1.00 1.03 1.17 0.97 1.00 1.05 1.02 1.12 1.21

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
2006200720082009201020112012201320142015
Retained Earnings -74.57M -245.51M -218.92M -330.91M -403.99M -395.80M -413.84M -409.69M -417.07M -421.45M
Retained Earnings Growth - -229.23% 10.83% -51.16% -22.09% 2.03% -4.56% 1.00% -1.80% -1.05%

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.

$5.45 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 29.54M -150.21M 26.60M -111.99M -73.09M 8.19M -18.04M 4.15M -7.38M -4.38M
divided by
Revenue 601.44M 615.43M 638.14M 500.09M 548.33M 586.96M 538.74M 546.89M 542.93M 477.24M
Net Profit Margin 4.91% -24.41% 4.17% -22.39% -13.33% 1.40% -3.35% 0.76% -1.36% -0.92%

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.

$44.87 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
2006200720082009201020112012201320142015
Gross Profit 247.87M 253.51M 243.67M 187.50M 214.38M 574.86M 193.57M 209.64M 215.77M 188.73M
divided by
Revenue 601.44M 615.43M 638.14M 500.09M 548.33M 586.96M 538.74M 546.89M 542.93M 477.24M
Gross Margin 41.21% 41.19% 38.18% 37.49% 39.10% 97.94% 35.93% 38.33% 39.74% 39.55%

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.

421.94% 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
2006200720082009201020112012201320142015
Capital Expenditure 32.46M 47.86M 39.03M 19.53M 27.93M 30.15M 21.71M 44.15M 45.22M 50.87M
divided by
Net Income 29.54M -150.21M 26.60M -111.99M -73.09M 8.19M -18.04M 4.15M -7.38M -4.38M
Capital Expenditure Ratio 109.86% -31.86% 146.74% -17.44% -38.21% 368.18% -120.35% 1,062.97% -612.54% -1,161.44%

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
2006200720082009201020112012201320142015
Dividend Paid 39.40M 11.78M - - - - - - - -
divided by
Shares Outstanding 2.19M 2.24M 2.31M 2.45M 10.02M 15.08M 15.22M 15.88M 15.46M 15.64M
Dividend Paid Per Share 17.95 5.27 - - - - - - - -
Price at Year End 181.18 105.60 12.80 16.80 16.05 6.54 3.05 15.41 15.90 11.88
Dividend Yield 9.91% 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
2006200720082009201020112012201320142015
Shares Outstanding 2.19M 2.24M 2.31M 2.45M 10.02M 15.08M 15.22M 15.88M 15.46M 15.64M
Stock Bought Back - -1.90% -3.14% -5.54% -75.59% -33.58% -0.91% -4.16% 2.74% -1.16%
Share your thoughts about XRM

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!