ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - TSX:ERO - CA2960061091 - Common Stock
33.92 CAD
+0.85 (+2.57%)
Overall ERO gets a fundamental rating of 5 out of 10. We evaluated ERO against 810 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
ERO had positive earnings in the past year.
In the past year ERO had a positive cash flow from operations.
Of the past 5 years ERO 4 years were profitable.
ERO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERO has a Return On Assets of 8.05%. This is amongst the best in the industry. ERO outperforms 91.60% of its industry peers.
The Return On Equity of ERO (17.33%) is better than 94.07% of its industry peers.
The Return On Invested Capital of ERO (9.33%) is better than 94.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 12.06%.
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
With an excellent Profit Margin value of 26.62%, ERO belongs to the best of the industry, outperforming 96.05% of the companies in the same industry.
ERO's Operating Margin of 32.35% is amongst the best of the industry. ERO outperforms 95.06% of its industry peers.
In the last couple of years the Operating Margin of ERO has remained more or less at the same level.
With an excellent Gross Margin value of 42.71%, ERO belongs to the best of the industry, outperforming 93.58% 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
ERO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 2.68 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ERO (2.68) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that 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 73.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.68 |
ROIC/WACC1.04
WACC8.97%
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.
ERO's Current ratio of 0.84 is on the low side compared to the rest of the industry. ERO is outperformed by 63.70% of its industry peers.
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 has a Quick ratio of 0.52. This is in the lower half of the industry: ERO underperforms 68.15% 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.
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.
The Revenue has grown by 20.59% in the past year. This is a very strong growth!
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
ERO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.30% yearly.
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 Y163.4%
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.27, which indicates a rather expensive current valuation of ERO.
Compared to the rest of the industry, the Price/Earnings ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 93.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.53. ERO is valued slightly cheaper when compared to this.
ERO is valuated reasonably with a Price/Forward Earnings ratio of 8.71.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 95.56% of the companies in the same industry.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaply inside the industry as 93.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.92 |
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 56.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
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 (10/15/2025, 7:00:00 PM)
33.92
+0.85 (+2.57%)
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 Cap3.51B
Analysts81.11
Price Target26.68 (-21.34%)
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)1.17%
PT rev (3m)1.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.87%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.05%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-5.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 8.71 | ||
| P/S | 4.67 | ||
| P/FCF | N/A | ||
| P/OCF | 9.3 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)1.76
EY5.19%
EPS(NY)3.89
Fwd EY11.48%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)3.65
OCFY10.76%
SpS7.27
BVpS11.16
TBVpS11.16
PEG (NY)0.12
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 | 2.68 |
F-Score7
WACC8.97%
ROIC/WACC1.04
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%