ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - TSX:ERO - CA2960061091 - Common Stock
23.4 CAD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 807 industry peers in the Metals & Mining industry. ERO has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: ERO is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year ERO was profitable.
In the past year ERO had a positive cash flow from operations.
ERO had positive earnings in 4 of the past 5 years.
ERO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.05%, ERO belongs to the best of the industry, outperforming 92.20% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.33%, ERO belongs to the top of the industry, outperforming 94.09% of the companies in the same industry.
The Return On Invested Capital of ERO (9.33%) is better than 94.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 11.74%.
The last Return On Invested Capital (9.33%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.05% | ||
| ROE | 17.33% | ||
| ROIC | 9.33% |
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
ERO's Profit Margin of 26.62% is amongst the best of the industry. ERO outperforms 95.85% of its industry peers.
ERO has a better Operating Margin (32.35%) than 94.72% 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 (42.71%) than 93.33% of its industry peers.
ERO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.35% | ||
| PM (TTM) | 26.62% | ||
| GM | 42.71% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERO is still creating some value.
The number of shares outstanding for ERO has been increased compared to 1 year ago.
Compared to 5 years ago, ERO has more shares outstanding
Compared to 1 year ago, ERO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO has a Altman-Z score of 2.21. This is comparable to the rest of the industry: ERO outperforms 51.70% of its industry peers.
ERO has a Debt/Equity ratio of 0.70. This is a neutral value indicating ERO is somewhat dependend on debt financing.
ERO's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. ERO is outperformed by 75.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC1.03
WACC9.05%
2.3 Liquidity
ERO has a Current Ratio of 0.84. This is a bad value and indicates that ERO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.84, ERO is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
ERO has a Quick Ratio of 0.84. 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's Quick ratio of 0.52 is on the low side compared to the rest of the industry. ERO is outperformed by 68.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.23% over the past year.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
Looking at the last year, ERO shows a very strong growth in Revenue. The Revenue has grown by 20.59%.
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)71.23%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%155.56%
Revenue 1Y (TTM)20.59%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
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 21.30% on average per year.
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.24% yearly.
EPS Next Y163.16%
EPS Next 2Y88.34%
EPS Next 3Y56.21%
EPS Next 5Y21.3%
Revenue Next Year57.49%
Revenue Next 2Y43.5%
Revenue Next 3Y27.97%
Revenue Next 5Y11.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.53, ERO is valued correctly.
94.72% of the companies in the same industry are more expensive than ERO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (27.30), we can say ERO is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.11, the valuation of ERO can be described as very cheap.
ERO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 96.60% of the companies in the same industry.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 6.11 |
4.2 Price Multiples
93.96% 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 | 9.02 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as ERO's earnings are expected to grow with 56.21% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y88.34%
EPS Next 3Y56.21%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (9/12/2025, 7:00:00 PM)
23.4
0 (0%)
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 Cap2.42B
Analysts81.05
Price Target26.43 (12.95%)
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)2
Avg EPS beat(2)43.75%
Min EPS beat(2)11.2%
Max EPS beat(2)76.3%
EPS beat(4)2
Avg EPS beat(4)6.18%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)4
Avg EPS beat(8)7.42%
EPS beat(12)5
Avg EPS beat(12)-2.7%
EPS beat(16)6
Avg EPS beat(16)-5.04%
Revenue beat(2)0
Avg Revenue beat(2)-5.09%
Min Revenue beat(2)-6.41%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-11.95%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)-3.77%
Revenue beat(8)1
Avg Revenue beat(8)-7.79%
Revenue beat(12)3
Avg Revenue beat(12)-6.75%
Revenue beat(16)5
Avg Revenue beat(16)-5.93%
PT rev (1m)0.07%
PT rev (3m)3.17%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-28.93%
EPS NY rev (1m)-4.61%
EPS NY rev (3m)-4.61%
Revenue NQ rev (1m)-2.76%
Revenue NQ rev (3m)-8.42%
Revenue NY rev (1m)-4.57%
Revenue NY rev (3m)-5.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 6.11 | ||
| P/S | 3.27 | ||
| P/FCF | N/A | ||
| P/OCF | 6.5 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)1.73
EY7.39%
EPS(NY)3.83
Fwd EY16.37%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)3.6
OCFY15.38%
SpS7.16
BVpS11
TBVpS11
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.05% | ||
| ROE | 17.33% | ||
| ROCE | 11.11% | ||
| ROIC | 9.33% | ||
| ROICexc | 9.75% | ||
| ROICexgc | 9.75% | ||
| OM | 32.35% | ||
| PM (TTM) | 26.62% | ||
| GM | 42.71% | ||
| 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-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 333.17% | ||
| Cap/Sales | 53.24% | ||
| Interest Coverage | 4.47 | ||
| Cash Conversion | 103.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.21 |
F-Score7
WACC9.05%
ROIC/WACC1.03
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)71.23%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%155.56%
EPS Next Y163.16%
EPS Next 2Y88.34%
EPS Next 3Y56.21%
EPS Next 5Y21.3%
Revenue 1Y (TTM)20.59%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
Revenue Next Year57.49%
Revenue Next 2Y43.5%
Revenue Next 3Y27.97%
Revenue Next 5Y11.24%
EBIT growth 1Y92.66%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year216.04%
EBIT Next 3Y61.79%
EBIT Next 5Y24.76%
FCF growth 1Y93.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.87%
OCF growth 3Y-26.39%
OCF growth 5Y2.62%