ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
TSX:ERO - Toronto Stock Exchange - CA2960061091 - Common Stock - Currency: CAD
ERO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 818 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, but there are concerns on its financial health. ERO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
Each year in the past 5 years ERO has been profitable.
Each year in the past 5 years ERO had a positive operating cash flow.
1.2 Ratios
ERO has a Return On Assets of 1.13%. This is amongst the best in the industry. ERO outperforms 86.89% of its industry peers.
ERO has a better Return On Equity (2.39%) than 87.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, ERO belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
ERO had an Average Return On Invested Capital over the past 3 years of 18.58%. This is significantly above the industry average of 11.82%.
The last Return On Invested Capital (6.49%) for ERO is well below the 3 year average (18.58%), which needs to be investigated, but indicates that ERO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.39% | ||
| ROIC | 6.49% |
ROA(3y)14.62%
ROA(5y)14.82%
ROE(3y)27.2%
ROE(5y)30.44%
ROIC(3y)18.58%
ROIC(5y)20.71%
1.3 Margins
ERO's Profit Margin of 3.67% is amongst the best of the industry. ERO outperforms 90.95% of its industry peers.
ERO's Profit Margin has improved in the last couple of years.
ERO has a Operating Margin of 22.40%. This is amongst the best in the industry. ERO outperforms 94.05% 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's Gross Margin of 36.63% is amongst the best of the industry. ERO outperforms 93.38% of its industry peers.
In the last couple of years the Gross Margin of ERO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.4% | ||
| PM (TTM) | 3.67% | ||
| GM | 36.63% |
OM growth 3Y-21.83%
OM growth 5Y0.75%
PM growth 3Y10.89%
PM growth 5YN/A
GM growth 3Y-14.17%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERO is creating value.
ERO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERO has more shares outstanding
ERO has a better debt/assets ratio than last year.
2.2 Solvency
ERO has an Altman-Z score of 1.97. This is not the best score and indicates that ERO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.97, ERO perfoms like the industry average, outperforming 53.24% of the companies in the same industry.
ERO has a Debt/Equity ratio of 0.71. This is a neutral value indicating ERO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, ERO is doing worse than 81.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.68
WACC9.61%
2.3 Liquidity
ERO has a Current Ratio of 0.68. This is a bad value and indicates that ERO is not financially healthy enough and could expect problems in meeting its short term obligations.
ERO has a worse Current ratio (0.68) than 70.41% of its industry peers.
A Quick Ratio of 0.42 indicates that ERO may have some problems paying its short term obligations.
ERO's Quick ratio of 0.42 is on the low side compared to the rest of the industry. ERO is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
ERO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.89%.
Measured over the past years, ERO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.38% on average per year.
ERO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.51%.
The Revenue has been growing by 12.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.89%
EPS 3Y-11.38%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y9.67%
Revenue growth 5Y12.89%
Sales Q2Q%18.67%
3.2 Future
Based on estimates for the next years, ERO will show a very strong growth in Earnings Per Share. The EPS will grow by 43.41% on average per year.
The Revenue is expected to grow by 20.38% on average over the next years. This is a very strong growth
EPS Next Y6.17%
EPS Next 2Y62.73%
EPS Next 3Y49.56%
EPS Next 5Y43.41%
Revenue Next Year12.58%
Revenue Next 2Y40.66%
Revenue Next 3Y31.08%
Revenue Next 5Y20.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 15.67 indicates a correct valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaply inside the industry as 91.35% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (29.62), we can say ERO is valued slightly cheaper.
A Price/Forward Earnings ratio of 5.56 indicates a rather cheap valuation of ERO.
ERO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 96.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERO to the average of the S&P500 Index (22.70), we can say ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 5.56 |
4.2 Price Multiples
91.76% of the companies in the same industry are more expensive than ERO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ERO may justify a higher PE ratio.
A more expensive valuation may be justified as ERO's earnings are expected to grow with 49.56% in the coming years.
PEG (NY)2.54
PEG (5Y)N/A
EPS Next 2Y62.73%
EPS Next 3Y49.56%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (2/21/2025, 7:00:00 PM)
18.18
-1.08 (-5.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.35%
Inst Owner ChangeN/A
Ins Owners7.7%
Ins Owner ChangeN/A
Market Cap1.88B
Analysts81.25
Price Target27.96 (53.8%)
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)-3.26%
Min EPS beat(2)-17.83%
Max EPS beat(2)11.31%
EPS beat(4)2
Avg EPS beat(4)7.17%
Min EPS beat(4)-18.14%
Max EPS beat(4)53.36%
EPS beat(8)3
Avg EPS beat(8)0.77%
EPS beat(12)4
Avg EPS beat(12)-10.21%
EPS beat(16)6
Avg EPS beat(16)-6.54%
Revenue beat(2)0
Avg Revenue beat(2)-12.01%
Min Revenue beat(2)-20.39%
Max Revenue beat(2)-3.62%
Revenue beat(4)1
Avg Revenue beat(4)-6.69%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)4.83%
Revenue beat(8)3
Avg Revenue beat(8)-4.78%
Revenue beat(12)4
Avg Revenue beat(12)-5.94%
Revenue beat(16)7
Avg Revenue beat(16)-1.8%
PT rev (1m)-14.72%
PT rev (3m)-18.33%
EPS NQ rev (1m)-10.57%
EPS NQ rev (3m)-10.57%
EPS NY rev (1m)-22.94%
EPS NY rev (3m)-31.42%
Revenue NQ rev (1m)-14.2%
Revenue NQ rev (3m)-14.04%
Revenue NY rev (1m)-8.56%
Revenue NY rev (3m)-20.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 5.56 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | 9.9 | ||
| P/B | 1.86 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)1.16
EY6.38%
EPS(NY)3.27
Fwd EY17.99%
FCF(TTM)-3.47
FCFYN/A
OCF(TTM)1.84
OCFY10.11%
SpS6.36
BVpS9.76
TBVpS9.76
PEG (NY)2.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.39% | ||
| ROCE | 7.85% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 6.59% | ||
| OM | 22.4% | ||
| PM (TTM) | 3.67% | ||
| GM | 36.63% | ||
| FCFM | N/A |
ROA(3y)14.62%
ROA(5y)14.82%
ROE(3y)27.2%
ROE(5y)30.44%
ROIC(3y)18.58%
ROIC(5y)20.71%
ROICexc(3y)24.15%
ROICexc(5y)25.38%
ROICexgc(3y)24.15%
ROICexgc(5y)25.38%
ROCE(3y)22.45%
ROCE(5y)25.03%
ROICexcg growth 3Y-43.94%
ROICexcg growth 5Y-15.27%
ROICexc growth 3Y-43.94%
ROICexc growth 5Y-15.27%
OM growth 3Y-21.83%
OM growth 5Y0.75%
PM growth 3Y10.89%
PM growth 5YN/A
GM growth 3Y-14.17%
GM growth 5Y0.8%
F-Score3
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 419.97% | ||
| Cap/Sales | 83.36% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 68.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.97 |
F-Score3
WACC9.61%
ROIC/WACC0.68
Cap/Depr(3y)480.33%
Cap/Depr(5y)394.17%
Cap/Sales(3y)71.42%
Cap/Sales(5y)57.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.89%
EPS 3Y-11.38%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y6.17%
EPS Next 2Y62.73%
EPS Next 3Y49.56%
EPS Next 5Y43.41%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y9.67%
Revenue growth 5Y12.89%
Sales Q2Q%18.67%
Revenue Next Year12.58%
Revenue Next 2Y40.66%
Revenue Next 3Y31.08%
Revenue Next 5Y20.38%
EBIT growth 1Y3.42%
EBIT growth 3Y-14.27%
EBIT growth 5Y13.74%
EBIT Next Year150.51%
EBIT Next 3Y88.05%
EBIT Next 5Y49.63%
FCF growth 1Y-180.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.88%
OCF growth 3Y0.06%
OCF growth 5Y14.49%