ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
30.93 USD
-0.21 (-0.67%)
31.89 USD
+0.96 (+3.1%)
Overall ERO gets a fundamental rating of 5 out of 10. We evaluated ERO against 156 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, 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
- In the past year ERO was profitable.
- In the past year ERO had a positive cash flow from operations.
- 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
- The Return On Assets of ERO (7.34%) is better than 81.41% of its industry peers.
- With an excellent Return On Equity value of 15.57%, ERO belongs to the best of the industry, outperforming 89.10% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.11%, ERO is doing good in the industry, outperforming 76.28% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 10.34%.
- 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 87.18% of its industry peers.
- The Operating Margin of ERO (29.97%) is better than 82.69% 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 fine compared to the rest of the industry. ERO outperforms 76.28% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ERO 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 3.05 indicates that ERO is not in any danger for bankruptcy at the moment.
- ERO has a Altman-Z score (3.05) which is in line with its industry peers.
- 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.
- With a Debt to FCF ratio value of 14.97, ERO perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
- ERO has a Debt/Equity ratio of 0.64. This is a neutral value indicating ERO is somewhat dependend on debt financing.
- ERO has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: ERO underperforms 77.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.94
WACC9.69%
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 has a Current ratio of 0.82. This is amonst the worse of the industry: ERO underperforms 88.46% 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: 92.31% 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.
- 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
- ERO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.51% yearly.
- ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.22% yearly.
EPS Next Y178.36%
EPS Next 2Y121.75%
EPS Next 3Y71.79%
EPS Next 5Y31.51%
Revenue Next Year60.62%
Revenue Next 2Y52.71%
Revenue Next 3Y32.18%
Revenue Next 5Y16.22%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.74 indicates a rather expensive 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 82.05% of the companies listed in the same industry.
- ERO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- A Price/Forward Earnings ratio of 8.06 indicates a reasonable valuation of ERO.
- Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 93.59% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ERO to the average of the S&P500 Index (24.32), we can say ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERO indicates a somewhat cheap valuation: ERO is cheaper than 70.51% of the companies listed in the same industry.
- 66.67% of the companies in the same industry are more expensive than ERO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.17 | ||
| EV/EBITDA | 13.98 |
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 decent profitability rating of ERO 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)0.14
PEG (5Y)N/A
EPS Next 2Y121.75%
EPS Next 3Y71.79%
5. Dividend
5.1 Amount
- ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.93
-0.21 (-0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners76%
Inst Owner Change0.08%
Ins Owners5.99%
Ins Owner ChangeN/A
Market Cap3.20B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts75
Price Target28.5 (-7.86%)
Short Float %3.61%
Short Ratio2.73
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)5.46%
PT rev (3m)48.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.81%
EPS NY rev (1m)1.13%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 8.06 | ||
| P/S | 5.45 | ||
| P/FCF | 75.17 | ||
| P/OCF | 9.81 | ||
| P/B | 3.62 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 13.98 |
EPS(TTM)1.25
EY4.04%
EPS(NY)3.84
Fwd EY12.4%
FCF(TTM)0.41
FCFY1.33%
OCF(TTM)3.15
OCFY10.2%
SpS5.68
BVpS8.54
TBVpS8.54
PEG (NY)0.14
PEG (5Y)N/A
Graham Number15.5
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 | 3.05 |
F-Score8
WACC9.69%
ROIC/WACC0.94
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 5Y31.51%
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 5Y16.22%
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 FAQ
What is the fundamental rating for ERO stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERO.
What is the valuation status of ERO COPPER CORP (ERO) stock?
ChartMill assigns a valuation rating of 7 / 10 to ERO COPPER CORP (ERO). This can be considered as Undervalued.
What is the profitability of ERO stock?
ERO COPPER CORP (ERO) has a profitability rating of 7 / 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) is 24.74 and the Price/Book (PB) ratio is 3.62.