The average target price of PYRUM.OL is 540 and suggests 74% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 540.0. This translates into 74% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 540.0. This suggests 74% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Pyrum Innovations AG develops, builds, and operates recycling plants for used tires worldwide. It recycles used tires and produces secondary raw materials, such as rubber granules, carbon/recovered carbon black, thermolysis oils, and steel wires. Pyrum Innovations AG was founded in 2008 and is headquartered in Dillingen, Germany.

Germany

Pyrum Innovations AG

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

PYRUM.OL reported revenue of EUR 4mn in the last 12 months, up 249% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 14% from FY23 to EUR -3.35. Market expects EPS to reach EUR -3.09 in FY25.

The stock has been falling steadily in the past six months, losing 8% in total. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 0ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -184.0% in the last 12 months, up from -604.3% in FY23. 

Historically, PYRUM.OL has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -271.0%, a growth from -826.1% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -20.7%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -18.8% in the last 12 months, an increase from -18.9% in FY23. 

Pyrum Innovations AG reported a return on equity (RoE) of -54.1% in the last 12 months, down from -35.1% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -5.5 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

PYRUM.OL has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, and inadequate interest coverage. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, PYRUM.OL is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, PYRUM.OL is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. 

Pyrum Innovations AG

NOK 310

2

Pyrum Innovations AG

NOK 310

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

NOK 310

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