ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
25 USD
-0.13 (-0.52%)
25.143 USD
+0.14 (+0.57%)
Taking everything into account, ERO scores 5 out of 10 in our fundamental rating. ERO was compared to 155 industry peers in the Metals & Mining industry. ERO has an excellent profitability rating, 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.
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
Looking at the Return On Assets, with a value of 7.34%, ERO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.57%, ERO belongs to the top of the industry, outperforming 87.74% of the companies in the same industry.
ERO has a better Return On Invested Capital (9.11%) than 76.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERO is significantly below the industry average of 13.15%.
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
With an excellent Profit Margin value of 23.43%, ERO belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
ERO's Operating Margin of 29.97% is amongst the best of the industry. ERO outperforms 83.23% of its industry peers.
In the last couple of years the Operating Margin of ERO has remained more or less at the same level.
ERO's Gross Margin of 39.72% is fine compared to the rest of the industry. ERO outperforms 76.13% 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) just above the Cost of Capital (WACC), ERO is creating some value.
Compared to 1 year ago, ERO has more shares outstanding
ERO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ERO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO has a Altman-Z score (2.66) 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.
ERO's Debt to FCF ratio of 14.97 is in line compared to the rest of the industry. ERO outperforms 57.42% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that 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: 80.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.01
WACC9.02%
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.
The Current ratio of ERO (0.82) is worse than 89.68% of its industry peers.
A Quick Ratio of 0.44 indicates that ERO may have some problems paying its short term obligations.
ERO's Quick ratio of 0.44 is on the low side compared to the rest of the industry. ERO is outperformed by 93.55% 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.
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
ERO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.36% yearly.
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 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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ERO is valuated rather expensively with a Price/Earnings ratio of 20.00.
Based on the Price/Earnings ratio, ERO is valued cheaper than 81.94% of the companies in the same industry.
ERO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.66 indicates a rather cheap valuation of ERO.
Based on the Price/Forward Earnings ratio, ERO is valued cheaply inside the industry as 92.90% of the companies are valued more expensively.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued a bit cheaper than 69.68% of the companies in the same industry.
67.74% 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 | 60.76 | ||
| EV/EBITDA | 11.64 |
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 a very decent 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)0.11
PEG (5Y)N/A
EPS Next 2Y119.29%
EPS Next 3Y71.24%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25
-0.13 (-0.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners72.24%
Inst Owner Change13.47%
Ins Owners5.97%
Ins Owner ChangeN/A
Market Cap2.59B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.84
Price Target27.02 (8.08%)
Short Float %3.21%
Short Ratio2.86
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)16.5%
PT rev (3m)42.68%
EPS NQ rev (1m)20.24%
EPS NQ rev (3m)33.58%
EPS NY rev (1m)7.95%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)3.45%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 6.66 | ||
| P/S | 4.4 | ||
| P/FCF | 60.76 | ||
| P/OCF | 7.93 | ||
| P/B | 2.93 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)1.25
EY5%
EPS(NY)3.75
Fwd EY15%
FCF(TTM)0.41
FCFY1.65%
OCF(TTM)3.15
OCFY12.62%
SpS5.68
BVpS8.54
TBVpS8.54
PEG (NY)0.11
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 | 2.66 |
F-Score8
WACC9.02%
ROIC/WACC1.01
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 FAQ
What is the ChartMill fundamental rating of ERO COPPER CORP (ERO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERO.
What is the valuation status for ERO stock?
ChartMill assigns a valuation rating of 8 / 10 to ERO COPPER CORP (ERO). This can be considered as Undervalued.
How profitable is ERO COPPER CORP (ERO) stock?
ERO COPPER CORP (ERO) has a profitability rating of 7 / 10.
What is the financial health of ERO COPPER CORP (ERO) stock?
The financial health rating of ERO COPPER CORP (ERO) is 2 / 10.
What is the expected EPS growth for ERO COPPER CORP (ERO) stock?
The Earnings per Share (EPS) of ERO COPPER CORP (ERO) is expected to grow by 175.26% in the next year.