ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ERO - CA2960061091 - Common Stock
36.9 CAD
+0.68 (+1.88%)
ERO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 814 industry peers in the Metals & Mining industry. While ERO has a great profitability rating, there are quite some concerns on its financial health. ERO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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 Return On Assets of 7.34%. This is amongst the best in the industry. ERO outperforms 90.66% of its industry peers.
Looking at the Return On Equity, with a value of 15.57%, ERO belongs to the top of the industry, outperforming 93.37% of the companies in the same industry.
ERO has a Return On Invested Capital of 9.11%. This is amongst the best in the industry. ERO outperforms 93.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERO is below the industry average of 12.95%.
The 3 year average ROIC (8.14%) for ERO is below the current ROIC(9.11%), indicating increased profibility in the last year.
| 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
The Profit Margin of ERO (23.43%) is better than 94.59% of its industry peers.
ERO has a better Operating Margin (29.97%) than 94.59% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO has a Gross Margin of 39.72%. This is amongst the best in the industry. ERO outperforms 92.75% 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.
Compared to 1 year ago, ERO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ERO (2.74) is comparable to the rest of the industry.
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.
With an excellent Debt to FCF ratio value of 14.97, ERO belongs to the best of the industry, outperforming 89.31% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that ERO is somewhat dependend on debt financing.
ERO has a worse Debt to Equity ratio (0.64) than 73.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.97
WACC9.37%
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 65.85% of its industry peers.
A Quick Ratio of 0.44 indicates that ERO may have some problems paying its short term obligations.
ERO has a worse Quick ratio (0.44) than 71.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.44% over the past year.
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%.
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)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
Based on estimates for the next years, ERO will show a very strong growth in Earnings Per Share. The EPS will grow by 33.36% on average per year.
Based on estimates for the next years, ERO will show a quite strong growth in Revenue. The Revenue will grow by 16.46% on average per year.
EPS Next Y175.26%
EPS Next 2Y119.29%
EPS Next 3Y71.24%
EPS Next 5Y33.36%
Revenue Next Year61.04%
Revenue Next 2Y53.57%
Revenue Next 3Y32.84%
Revenue Next 5Y16.46%
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
Based on the Price/Earnings ratio of 21.45, the valuation of ERO can be described as rather expensive.
91.65% of the companies in the same industry are more expensive than ERO, based on the Price/Earnings ratio.
ERO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.13, the valuation of ERO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 95.95% of the companies 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 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 7.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaper than 93.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERO is valued cheaply inside the industry as 92.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.02 | ||
| EV/EBITDA | 12.12 |
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 71.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y119.29%
EPS Next 3Y71.24%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:ERO (12/22/2025, 7:00:00 PM)
36.9
+0.68 (+1.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners72.24%
Inst Owner ChangeN/A
Ins Owners5.97%
Ins Owner ChangeN/A
Market Cap3.82B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.84
Price Target37.74 (2.28%)
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)16.93%
PT rev (3m)42.8%
EPS NQ rev (1m)4.17%
EPS NQ rev (3m)33.57%
EPS NY rev (1m)7.95%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)-5.64%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 7.13 | ||
| P/S | 4.71 | ||
| P/FCF | 65.02 | ||
| P/OCF | 8.48 | ||
| P/B | 3.13 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)1.72
EY4.66%
EPS(NY)5.17
Fwd EY14.02%
FCF(TTM)0.57
FCFY1.54%
OCF(TTM)4.35
OCFY11.79%
SpS7.83
BVpS11.78
TBVpS11.78
PEG (NY)0.12
PEG (5Y)N/A
Graham Number21.35
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 | 2.74 |
F-Score8
WACC9.37%
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 Y175.26%
EPS Next 2Y119.29%
EPS Next 3Y71.24%
EPS Next 5Y33.36%
Revenue 1Y (TTM)26.74%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%41.86%
Revenue Next Year61.04%
Revenue Next 2Y53.57%
Revenue Next 3Y32.84%
Revenue Next 5Y16.46%
EBIT growth 1Y69.59%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year204.03%
EBIT Next 3Y71.16%
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 ChartMill fundamental rating of ERO COPPER CORP (ERO.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERO.CA.
What is the valuation status for ERO stock?
ChartMill assigns a valuation rating of 9 / 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 2 / 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 175.26% in the next year.