ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
TSX:ERO - Toronto Stock Exchange - CA2960061091 - Common Stock - Currency: CAD
Taking everything into account, ERO scores 5 out of 10 in our fundamental rating. ERO was compared to 808 industry peers in the Metals & Mining industry. While ERO has a great profitability rating, there are quite some concerns on its financial health. ERO is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
ERO had positive earnings in the past year.
ERO had a positive operating cash flow in the past year.
Of the past 5 years ERO 4 years were profitable.
Each year in the past 5 years ERO had a positive operating cash flow.
1.2 Ratios
ERO's Return On Assets of 1.12% is amongst the best of the industry. ERO outperforms 86.14% of its industry peers.
ERO has a better Return On Equity (2.65%) than 87.38% of its industry peers.
The Return On Invested Capital of ERO (8.65%) is better than 94.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 12.36%.
The 3 year average ROIC (8.14%) for ERO is below the current ROIC(8.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROIC | 8.65% |
ROA(3y)3.34%
ROA(5y)9.91%
ROE(3y)6.26%
ROE(5y)18.84%
ROIC(3y)8.14%
ROIC(5y)19.2%
1.3 Margins
Looking at the Profit Margin, with a value of 3.86%, ERO belongs to the top of the industry, outperforming 90.35% of the companies in the same industry.
ERO has a better Operating Margin (30.81%) than 94.55% of its industry peers.
In the last couple of years the Operating Margin of ERO has remained more or less at the same level.
ERO has a better Gross Margin (41.85%) than 94.06% of its industry peers.
ERO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 3.86% | ||
| GM | 41.85% |
OM growth 3Y-22.63%
OM growth 5Y-1.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.13%
GM growth 5Y-1.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERO is creating some value.
Compared to 1 year ago, ERO has more shares outstanding
ERO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ERO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.17 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO's Altman-Z score of 2.17 is in line compared to the rest of the industry. ERO outperforms 56.31% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that ERO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, ERO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC1.07
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ERO should not have too much problems paying its short term obligations.
ERO has a Current ratio (1.05) which is comparable to the rest of the industry.
A Quick Ratio of 0.78 indicates that ERO may have some problems paying its short term obligations.
ERO has a Quick ratio of 0.78. This is in the lower half of the industry: ERO underperforms 61.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ERO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.78%, which is quite impressive.
ERO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.60% yearly.
Looking at the last year, ERO shows a quite strong growth in Revenue. The Revenue has grown by 13.24% in the last year.
ERO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.55% yearly.
EPS 1Y (TTM)22.78%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%118.75%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%18.24%
3.2 Future
ERO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.14% yearly.
Based on estimates for the next years, ERO will show a quite strong growth in Revenue. The Revenue will grow by 19.76% on average per year.
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y46.14%
Revenue Next Year66.59%
Revenue Next 2Y41.49%
Revenue Next 3Y27.6%
Revenue Next 5Y19.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.39 indicates a rather expensive valuation of ERO.
Compared to the rest of the industry, the Price/Earnings ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 91.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (27.45), we can say ERO is valued slightly cheaper.
ERO is valuated cheaply with a Price/Forward Earnings ratio of 5.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 95.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 5.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaper than 92.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.21 |
4.3 Compensation for Growth
ERO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ERO has an outstanding profitability rating, which may justify a higher PE ratio.
ERO's earnings are expected to grow with 64.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y97.55%
EPS Next 3Y64.71%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (7/3/2025, 7:00:00 PM)
22.96
-0.75 (-3.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner ChangeN/A
Ins Owners6.17%
Ins Owner ChangeN/A
Market Cap2.38B
Analysts82.22
Price Target26.32 (14.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.68%
Min EPS beat(2)-44.95%
Max EPS beat(2)76.3%
EPS beat(4)2
Avg EPS beat(4)6.21%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)3
Avg EPS beat(8)4.95%
EPS beat(12)4
Avg EPS beat(12)-7.23%
EPS beat(16)6
Avg EPS beat(16)-5.64%
Revenue beat(2)0
Avg Revenue beat(2)-10.51%
Min Revenue beat(2)-17.25%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-11.26%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)-3.62%
Revenue beat(8)1
Avg Revenue beat(8)-7.62%
Revenue beat(12)3
Avg Revenue beat(12)-7.35%
Revenue beat(16)6
Avg Revenue beat(16)-3.91%
PT rev (1m)6.34%
PT rev (3m)-1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.22%
EPS NY rev (1m)0%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 5.53 | ||
| P/S | 3.56 | ||
| P/FCF | N/A | ||
| P/OCF | 9 | ||
| P/B | 2.44 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 10.21 |
EPS(TTM)1.32
EY5.75%
EPS(NY)4.15
Fwd EY18.09%
FCF(TTM)-1.26
FCFYN/A
OCF(TTM)2.55
OCFY11.11%
SpS6.45
BVpS9.41
TBVpS9.41
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROCE | 10.31% | ||
| ROIC | 8.65% | ||
| ROICexc | 9.15% | ||
| ROICexgc | 9.15% | ||
| OM | 30.81% | ||
| PM (TTM) | 3.86% | ||
| GM | 41.85% | ||
| FCFM | N/A |
ROA(3y)3.34%
ROA(5y)9.91%
ROE(3y)6.26%
ROE(5y)18.84%
ROIC(3y)8.14%
ROIC(5y)19.2%
ROICexc(3y)9.9%
ROICexc(5y)23.79%
ROICexgc(3y)9.9%
ROICexgc(5y)23.79%
ROCE(3y)9.69%
ROCE(5y)22.87%
ROICexcg growth 3Y-45.44%
ROICexcg growth 5Y-14.21%
ROICexc growth 3Y-45.44%
ROICexc growth 5Y-14.21%
OM growth 3Y-22.63%
OM growth 5Y-1.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.13%
GM growth 5Y-1.36%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 349.72% | ||
| Cap/Sales | 59.1% | ||
| Interest Coverage | 4.22 | ||
| Cash Conversion | 82.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.17 |
F-Score6
WACC8.05%
ROIC/WACC1.07
Cap/Depr(3y)480.9%
Cap/Depr(5y)425.39%
Cap/Sales(3y)82.97%
Cap/Sales(5y)64.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.78%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%118.75%
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y46.14%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%18.24%
Revenue Next Year66.59%
Revenue Next 2Y41.49%
Revenue Next 3Y27.6%
Revenue Next 5Y19.76%
EBIT growth 1Y76.53%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year216.04%
EBIT Next 3Y61.79%
EBIT Next 5Y45.5%
FCF growth 1Y54.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.22%
OCF growth 3Y-26.39%
OCF growth 5Y2.62%