ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ERO - CA2960061091 - Common Stock
43.04 CAD
+2.35 (+5.78%)
Taking everything into account, ERO scores 6 out of 10 in our fundamental rating. ERO was compared to 813 industry peers in the Metals & Mining industry. While ERO has a great profitability rating, there are quite some 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.
ERO had a positive operating cash flow in the past year.
ERO had positive earnings in 4 of the past 5 years.
In the past 5 years ERO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.34%, ERO belongs to the best of the industry, outperforming 91.02% of the companies in the same industry.
With an excellent Return On Equity value of 15.57%, ERO belongs to the best of the industry, outperforming 93.60% of the companies in the same industry.
ERO has a better Return On Invested Capital (9.11%) than 93.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 11.94%.
The last Return On Invested Capital (9.11%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 15.57% | ||
| ROIC | 9.11% |
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 has a better Profit Margin (23.43%) than 94.71% of its industry peers.
ERO's Operating Margin of 29.97% is amongst the best of the industry. ERO outperforms 94.59% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO has a better Gross Margin (39.72%) than 92.99% of its industry peers.
ERO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.97% | ||
| PM (TTM) | 23.43% | ||
| GM | 39.72% |
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
ERO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ERO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ERO has been increased compared to 5 years ago.
The debt/assets ratio for ERO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that ERO is not in any danger for bankruptcy at the moment.
ERO has a Altman-Z score (3.04) which is in line with its industry peers.
The Debt to FCF ratio of ERO is 14.97, which is on the high side as it means it would take ERO, 14.97 years of fcf income to pay off all of its debts.
ERO has a better Debt to FCF ratio (14.97) than 89.42% of its industry peers.
ERO has a Debt/Equity ratio of 0.64. This is a neutral value indicating ERO is somewhat dependend on debt financing.
ERO has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: ERO underperforms 72.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.98
WACC9.29%
2.3 Liquidity
ERO has a Current Ratio of 0.82. 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 Current ratio of 0.82. This is in the lower half of the industry: ERO underperforms 64.08% of its industry peers.
ERO has a Quick Ratio of 0.82. 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 Quick ratio value of 0.44, ERO is not doing good in the industry: 69.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
ERO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.44%, 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.
ERO shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.74%.
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)52.44%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%0%
Revenue 1Y (TTM)26.74%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%41.86%
3.2 Future
The Earnings Per Share is expected to grow by 31.51% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.22% on average over the next years. This is quite good.
EPS Next Y178.36%
EPS Next 2Y121.75%
EPS Next 3Y71.79%
EPS Next 5Y31.51%
Revenue Next Year60.62%
Revenue Next 2Y52.71%
Revenue Next 3Y32.18%
Revenue Next 5Y16.22%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.88, which indicates a rather expensive current valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaply inside the industry as 91.39% of the companies are valued more expensively.
ERO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 8.09 indicates a reasonable valuation of ERO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 95.45% of the companies listed in the same industry.
ERO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaply inside the industry as 93.11% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 92.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.41 | ||
| EV/EBITDA | 13.93 |
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.
ERO's earnings are expected to grow with 71.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y121.75%
EPS Next 3Y71.79%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:ERO (1/12/2026, 7:00:00 PM)
43.04
+2.35 (+5.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners76%
Inst Owner ChangeN/A
Ins Owners5.99%
Ins Owner ChangeN/A
Market Cap4.46B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts75
Price Target38.43 (-10.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-16.33%
Min EPS beat(2)-43.87%
Max EPS beat(2)11.2%
EPS beat(4)2
Avg EPS beat(4)-0.33%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)4
Avg EPS beat(8)3.42%
EPS beat(12)5
Avg EPS beat(12)0.41%
EPS beat(16)6
Avg EPS beat(16)-7.74%
Revenue beat(2)0
Avg Revenue beat(2)-13.19%
Min Revenue beat(2)-19.98%
Max Revenue beat(2)-6.41%
Revenue beat(4)0
Avg Revenue beat(4)-11.85%
Min Revenue beat(4)-19.98%
Max Revenue beat(4)-3.77%
Revenue beat(8)1
Avg Revenue beat(8)-9.27%
Revenue beat(12)3
Avg Revenue beat(12)-7.14%
Revenue beat(16)4
Avg Revenue beat(16)-7.42%
PT rev (1m)1.83%
PT rev (3m)44.03%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)33.57%
EPS NY rev (1m)1.13%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 8.09 | ||
| P/S | 5.47 | ||
| P/FCF | 75.41 | ||
| P/OCF | 9.84 | ||
| P/B | 3.63 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 13.93 |
EPS(TTM)1.73
EY4.02%
EPS(NY)5.32
Fwd EY12.36%
FCF(TTM)0.57
FCFY1.33%
OCF(TTM)4.38
OCFY10.17%
SpS7.88
BVpS11.85
TBVpS11.85
PEG (NY)0.14
PEG (5Y)N/A
Graham Number21.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 15.57% | ||
| ROCE | 10.86% | ||
| ROIC | 9.11% | ||
| ROICexc | 9.5% | ||
| ROICexgc | 9.5% | ||
| OM | 29.97% | ||
| PM (TTM) | 23.43% | ||
| GM | 39.72% | ||
| FCFM | 7.25% |
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%
ROICexgc growth 3Y-45.44%
ROICexgc 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-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 297.66% | ||
| Cap/Sales | 48.31% | ||
| Interest Coverage | 4.25 | ||
| Cash Conversion | 120.25% | ||
| Profit Quality | 30.94% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.04 |
F-Score8
WACC9.29%
ROIC/WACC0.98
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)52.44%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%0%
EPS Next Y178.36%
EPS Next 2Y121.75%
EPS Next 3Y71.79%
EPS Next 5Y31.51%
Revenue 1Y (TTM)26.74%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%41.86%
Revenue Next Year60.62%
Revenue Next 2Y52.71%
Revenue Next 3Y32.18%
Revenue Next 5Y16.22%
EBIT growth 1Y69.59%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year204.36%
EBIT Next 3Y73.55%
EBIT Next 5Y33.96%
FCF growth 1Y115.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y121.29%
OCF growth 3Y-26.39%
OCF growth 5Y2.62%
ERO COPPER CORP / ERO.CA FAQ
What is the fundamental rating for ERO stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERO.CA.
What is the valuation status of ERO COPPER CORP (ERO.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to ERO COPPER CORP (ERO.CA). This can be considered as Undervalued.
What is the profitability of ERO stock?
ERO COPPER CORP (ERO.CA) has a profitability rating of 8 / 10.
What is the valuation of ERO COPPER CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ERO COPPER CORP (ERO.CA) is 24.88 and the Price/Book (PB) ratio is 3.63.