ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ERO - CA2960061091 - Common Stock
39.89 CAD
+1.06 (+2.73%)
Taking everything into account, ERO scores 6 out of 10 in our fundamental rating. ERO was compared to 804 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
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 has a better Return On Assets (7.34%) than 90.80% of its industry peers.
ERO's Return On Equity of 15.57% is amongst the best of the industry. ERO outperforms 93.53% of its industry peers.
ERO has a better Return On Invested Capital (9.11%) than 93.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERO is below the industry average of 13.07%.
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 Profit Margin of 23.43%. This is amongst the best in the industry. ERO outperforms 94.65% of its industry peers.
The Operating Margin of ERO (29.97%) is better than 94.65% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO's Gross Margin of 39.72% is amongst the best of the industry. ERO outperforms 93.03% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ERO is destroying value.
Compared to 1 year ago, ERO has more shares outstanding
ERO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ERO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.87 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 2.87. This is comparable to the rest of the industry: ERO outperforms 51.24% of its industry peers.
ERO has a debt to FCF ratio of 14.97. This is a negative value and a sign of low solvency as ERO would need 14.97 years to pay back of all of its debts.
ERO has a better Debt to FCF ratio (14.97) than 89.43% 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.
With a Debt to Equity ratio value of 0.64, ERO is not doing good in the industry: 71.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.97
WACC9.35%
2.3 Liquidity
A Current Ratio of 0.82 indicates that ERO may have some problems paying its short term obligations.
ERO's Current ratio of 0.82 is on the low side compared to the rest of the industry. ERO is outperformed by 63.81% of its industry peers.
A Quick Ratio of 0.44 indicates that ERO may have some problems paying its short term obligations.
The Quick ratio of ERO (0.44) is worse than 70.02% of its industry peers.
| 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.
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 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 33.36% on average over the next years. This is a very strong growth
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.46% yearly.
EPS Next Y178.36%
EPS Next 2Y121.75%
EPS Next 3Y71.79%
EPS Next 5Y33.36%
Revenue Next Year60.62%
Revenue Next 2Y52.71%
Revenue Next 3Y32.18%
Revenue Next 5Y16.46%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.33, ERO is valued on the expensive side.
ERO's Price/Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 91.29% of the companies in the same industry.
ERO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 7.60 indicates a rather cheap valuation of ERO.
95.27% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
93.28% of the companies in the same industry are more expensive than ERO, based on the Enterprise Value to EBITDA ratio.
ERO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERO is cheaper than 92.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.81 | ||
| EV/EBITDA | 12.92 |
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)0.13
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 (1/2/2026, 7:00:00 PM)
39.89
+1.06 (+2.73%)
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 Cap4.13B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.84
Price Target38.43 (-3.66%)
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)9.9%
PT rev (3m)45.42%
EPS NQ rev (1m)13.34%
EPS NQ rev (3m)33.57%
EPS NY rev (1m)9.16%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)2.66%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 7.6 | ||
| P/S | 5.13 | ||
| P/FCF | 70.81 | ||
| P/OCF | 9.24 | ||
| P/B | 3.41 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)1.71
EY4.29%
EPS(NY)5.25
Fwd EY13.16%
FCF(TTM)0.56
FCFY1.41%
OCF(TTM)4.32
OCFY10.83%
SpS7.77
BVpS11.7
TBVpS11.7
PEG (NY)0.13
PEG (5Y)N/A
Graham Number21.21
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 | 2.87 |
F-Score8
WACC9.35%
ROIC/WACC0.97
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 5Y33.36%
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 5Y16.46%
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 9 / 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 23.33 and the Price/Book (PB) ratio is 3.41.