ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ERO - CA2960061091 - Common Stock
35.1 CAD
-0.05 (-0.14%)
We assign a fundamental rating of 6 out of 10 to ERO. ERO was compared to 796 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, but there are 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
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.
Each year in the past 5 years ERO had a positive operating cash flow.
1.2 Ratios
ERO's Return On Assets of 7.34% is amongst the best of the industry. ERO outperforms 90.33% of its industry peers.
The Return On Equity of ERO (15.57%) is better than 93.22% of its industry peers.
The Return On Invested Capital of ERO (9.11%) is better than 93.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 12.63%.
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 94.85% of its industry peers.
Looking at the Operating Margin, with a value of 29.97%, ERO belongs to the top of the industry, outperforming 94.60% of the companies in the same industry.
ERO's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 39.72%, ERO belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERO is still creating some value.
The number of shares outstanding for ERO has been increased compared to 1 year ago.
Compared to 5 years ago, ERO has more shares outstanding
ERO has a worse debt/assets ratio than last year.
2.2 Solvency
ERO has an Altman-Z score of 2.67. This is not the best score and indicates that ERO is in the grey zone with still only limited risk for bankruptcy at the moment.
ERO has a Altman-Z score (2.67) which is comparable to the rest of the industry.
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 89.07% 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.
The Debt to Equity ratio of ERO (0.64) is worse than 74.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.02
WACC8.97%
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's Current ratio of 0.82 is on the low side compared to the rest of the industry. ERO is outperformed by 65.58% of its industry peers.
A Quick Ratio of 0.44 indicates that ERO may have some problems paying its short term obligations.
With a Quick ratio value of 0.44, ERO is not doing good in the industry: 72.49% 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
The Earnings Per Share has grown by an impressive 52.44% 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 26.74% in the past year. This is a very strong growth!
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
The Revenue is expected to grow by 16.46% on average over the next years. This is quite good.
EPS Next Y155%
EPS Next 2Y100.32%
EPS Next 3Y61.87%
EPS Next 5Y33.36%
Revenue Next Year56.46%
Revenue Next 2Y46.59%
Revenue Next 3Y28.84%
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
The Price/Earnings ratio is 20.06, which indicates a rather expensive current valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaper than 91.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, ERO is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.03, the valuation of ERO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 94.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaply inside the industry as 93.72% 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 91.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.06 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
ERO's 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.
ERO's earnings are expected to grow with 61.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y100.32%
EPS Next 3Y61.87%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (12/4/2025, 7:00:00 PM)
35.1
-0.05 (-0.14%)
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 Cap3.64B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.67
Price Target34.97 (-0.37%)
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)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)31.06%
PT rev (3m)32.96%
EPS NQ rev (1m)6.57%
EPS NQ rev (3m)19.65%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)3.45%
Revenue NQ rev (3m)5.66%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 8.03 | ||
| P/S | 4.43 | ||
| P/FCF | 61.06 | ||
| P/OCF | 7.96 | ||
| P/B | 2.94 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)1.75
EY4.99%
EPS(NY)4.37
Fwd EY12.46%
FCF(TTM)0.57
FCFY1.64%
OCF(TTM)4.41
OCFY12.56%
SpS7.93
BVpS11.94
TBVpS11.94
PEG (NY)0.13
PEG (5Y)N/A
Graham Number21.68
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 | 2.67 |
F-Score8
WACC8.97%
ROIC/WACC1.02
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 Y155%
EPS Next 2Y100.32%
EPS Next 3Y61.87%
EPS Next 5Y33.36%
Revenue 1Y (TTM)26.74%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%41.86%
Revenue Next Year56.46%
Revenue Next 2Y46.59%
Revenue Next 3Y28.84%
Revenue Next 5Y16.46%
EBIT growth 1Y69.59%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year194.25%
EBIT Next 3Y61.44%
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 3 / 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 155% in the next year.