ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
21.6 USD
+0.66 (+3.15%)
21.6 USD
0 (0%)
Overall ERO gets a fundamental rating of 5 out of 10. We evaluated ERO against 154 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, but there are concerns on its financial health. ERO is growing strongly while it also seems undervalued. This is an interesting 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.
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
The Return On Assets of ERO (7.34%) is better than 80.52% of its industry peers.
With an excellent Return On Equity value of 15.57%, ERO belongs to the best of the industry, outperforming 88.31% of the companies in the same industry.
The Return On Invested Capital of ERO (9.11%) is better than 76.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 12.85%.
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
ERO has a Profit Margin of 23.43%. This is amongst the best in the industry. ERO outperforms 88.31% of its industry peers.
With an excellent Operating Margin value of 29.97%, ERO belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
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 76.62% 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
ERO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
The debt/assets ratio for ERO is higher compared to a year ago.
2.2 Solvency
ERO has an Altman-Z score of 2.41. 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.
The Altman-Z score of ERO (2.41) 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.
Looking at the Debt to FCF ratio, with a value of 14.97, ERO is in line with its industry, outperforming 59.74% 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's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. ERO is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.04
WACC8.8%
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 88.96% of its industry peers.
ERO has a Quick 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.
With a Quick ratio value of 0.44, ERO is not doing good in the industry: 91.56% 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.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
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
Based on estimates for the next years, ERO will show a very strong growth in Earnings Per Share. The EPS will grow by 21.30% on average per year.
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.87% yearly.
EPS Next Y155%
EPS Next 2Y100.32%
EPS Next 3Y61.87%
EPS Next 5Y21.3%
Revenue Next Year56.46%
Revenue Next 2Y46.59%
Revenue Next 3Y28.84%
Revenue Next 5Y17.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 17.28 indicates a rather expensive valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaper than 83.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. ERO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 6.90, which indicates a rather cheap valuation of ERO.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 92.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. ERO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 6.9 |
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 72.08% of the companies listed in the same industry.
ERO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERO is cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.5 | ||
| EV/EBITDA | 10.09 |
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 decent profitability rating of ERO may justify a higher PE ratio.
A more expensive valuation may be justified as ERO's earnings are expected to grow with 61.87% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y100.32%
EPS Next 3Y61.87%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.6
+0.66 (+3.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner Change13.4%
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap2.24B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.67
Price Target23.04 (6.67%)
Short Float %4.55%
Short Ratio4.22
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)-13.85%
Min EPS beat(2)-38.9%
Max EPS beat(2)11.2%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)4
Avg EPS beat(8)4.04%
EPS beat(12)5
Avg EPS beat(12)0.82%
EPS beat(16)6
Avg EPS beat(16)-7.43%
Revenue beat(2)0
Avg Revenue beat(2)-9.82%
Min Revenue beat(2)-13.23%
Max Revenue beat(2)-6.41%
Revenue beat(4)0
Avg Revenue beat(4)-10.16%
Min Revenue beat(4)-17.25%
Max Revenue beat(4)-3.77%
Revenue beat(8)1
Avg Revenue beat(8)-8.43%
Revenue beat(12)3
Avg Revenue beat(12)-6.57%
Revenue beat(16)4
Avg Revenue beat(16)-7%
PT rev (1m)20.44%
PT rev (3m)17.1%
EPS NQ rev (1m)8.81%
EPS NQ rev (3m)12.8%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-7.57%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-5.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 6.9 | ||
| P/S | 3.8 | ||
| P/FCF | 52.5 | ||
| P/OCF | 6.85 | ||
| P/B | 2.53 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)1.25
EY5.79%
EPS(NY)3.13
Fwd EY14.49%
FCF(TTM)0.41
FCFY1.9%
OCF(TTM)3.15
OCFY14.6%
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 | 2.41 |
F-Score8
WACC8.8%
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)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 5Y21.3%
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 5Y17.87%
EBIT growth 1Y69.59%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year194.25%
EBIT Next 3Y61.44%
EBIT Next 5Y36.92%
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 155% in the next year.