ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - TSX:ERO - CA2960061091 - Common Stock
28.99 CAD
-0.96 (-3.21%)
Taking everything into account, ERO scores 5 out of 10 in our fundamental rating. ERO was compared to 792 industry peers in the Metals & Mining industry. While ERO belongs to the best of the industry regarding profitability, 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
ERO had positive earnings in the past year.
In the past year ERO had a positive cash flow from operations.
ERO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ERO had a positive operating cash flow.
1.2 Ratios
ERO's Return On Assets of 8.05% is amongst the best of the industry. ERO outperforms 91.29% of its industry peers.
With an excellent Return On Equity value of 17.33%, ERO belongs to the best of the industry, outperforming 93.69% of the companies in the same industry.
ERO has a Return On Invested Capital of 9.33%. This is amongst the best in the industry. ERO outperforms 94.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 12.40%.
The 3 year average ROIC (8.14%) for ERO is below the current ROIC(9.33%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 26.62%. This is amongst the best in the industry. ERO outperforms 96.09% of its industry peers.
ERO's Operating Margin of 32.35% is amongst the best of the industry. ERO outperforms 95.08% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 42.71%, ERO belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
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 | 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.
Compared to 1 year ago, ERO has more shares outstanding
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 2.45 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO has a Altman-Z score (2.45) which is comparable to the rest of the industry.
ERO has a Debt/Equity ratio of 0.70. This is a neutral value indicating ERO is somewhat dependend on debt financing.
ERO has a worse Debt to Equity ratio (0.70) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC1.1
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.84 indicates that ERO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, ERO is doing worse than 64.52% of the companies in the same industry.
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 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ERO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.23%, which is quite impressive.
Measured over the past years, ERO shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.60% on average per year.
ERO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.59%.
Measured over the past years, ERO shows a quite strong growth in Revenue. The Revenue has been growing by 10.55% on average per year.
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.
The Revenue is expected to grow by 11.24% on average over the next years. This is quite good.
EPS Next Y163.4%
EPS Next 2Y88.5%
EPS Next 3Y56.19%
EPS Next 5Y21.3%
Revenue Next Year57.74%
Revenue Next 2Y43.85%
Revenue Next 3Y27.97%
Revenue Next 5Y11.24%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.47, which indicates a correct valuation of ERO.
ERO's Price/Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 93.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (26.51), we can say ERO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 7.45, the valuation of ERO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 95.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERO to the average of the S&P500 Index (22.53), we can say ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaply inside the industry as 94.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.51 |
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.
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 56.19% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y88.5%
EPS Next 3Y56.19%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (11/3/2025, 7:00:00 PM)
28.99
-0.96 (-3.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner ChangeN/A
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap3.00B
Revenue(TTM)535.97M
Net Income(TTM)142.69M
Analysts81.11
Price Target32.28 (11.35%)
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)22.12%
PT rev (3m)17.82%
EPS NQ rev (1m)-20.18%
EPS NQ rev (3m)-30.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)-7.77%
Revenue NQ rev (3m)-12.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 7.45 | ||
| P/S | 3.99 | ||
| P/FCF | N/A | ||
| P/OCF | 7.95 | ||
| P/B | 2.6 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)1.76
EY6.07%
EPS(NY)3.89
Fwd EY13.43%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)3.65
OCFY12.59%
SpS7.26
BVpS11.16
TBVpS11.16
PEG (NY)0.1
PEG (5Y)N/A
Graham Number21.02
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%
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-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 | 2.45 |
F-Score7
WACC8.46%
ROIC/WACC1.1
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 Y163.4%
EPS Next 2Y88.5%
EPS Next 3Y56.19%
EPS Next 5Y21.3%
Revenue 1Y (TTM)20.59%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
Revenue Next Year57.74%
Revenue Next 2Y43.85%
Revenue Next 3Y27.97%
Revenue Next 5Y11.24%
EBIT growth 1Y92.66%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year194.25%
EBIT Next 3Y61.44%
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%
ERO COPPER CORP / ERO.CA FAQ
What is the ChartMill fundamental rating of ERO COPPER CORP (ERO.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERO.CA.
What is the valuation status for ERO stock?
ChartMill assigns a valuation rating of 8 / 10 to ERO COPPER CORP (ERO.CA). This can be considered as Undervalued.
How profitable is ERO COPPER CORP (ERO.CA) stock?
ERO COPPER CORP (ERO.CA) has a profitability rating of 8 / 10.
What is the financial health of ERO COPPER CORP (ERO.CA) stock?
The financial health rating of ERO COPPER CORP (ERO.CA) is 1 / 10.
What is the expected EPS growth for ERO COPPER CORP (ERO.CA) stock?
The Earnings per Share (EPS) of ERO COPPER CORP (ERO.CA) is expected to grow by 163.4% in the next year.