The average target price of PYRUM.OL is 540 and suggests 69% 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 69% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 540.0. This suggests 69% 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.

Over the past six months, the stock has consistently fallen, resulting in a 6% total decrease. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 3ppts and its growth accelerated by 1ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

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. 

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

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

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

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. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. 

Pyrum Innovations AG

NOK 320

2

Pyrum Innovations AG

NOK 320

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

NOK 320

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