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ERO COPPER CORP (ERO) Stock Fundamental Analysis

NYSE:ERO - New York Stock Exchange, Inc. - CA2960061091 - Common Stock - Currency: USD

13.43  +0.28 (+2.13%)

After market: 13.43 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 152 industry peers in the Metals & Mining industry. ERO has an excellent profitability rating, but there are concerns on its financial health. ERO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

ERO had positive earnings in the past year.
In the past year ERO had a positive cash flow from operations.
Each year in the past 5 years ERO has been profitable.
ERO had a positive operating cash flow in each of the past 5 years.
ERO Yearly Net Income VS EBIT VS OCF VS FCFERO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

With a Return On Assets value of 1.13%, ERO perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
With a Return On Equity value of 2.39%, ERO perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
The Return On Invested Capital of ERO (6.49%) is better than 70.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is significantly above the industry average of 8.75%.
The last Return On Invested Capital (6.49%) for ERO is well below the 3 year average (18.58%), which needs to be investigated, but indicates that ERO had better years and this may not be a problem.
Industry RankSector Rank
ROA 1.13%
ROE 2.39%
ROIC 6.49%
ROA(3y)14.62%
ROA(5y)14.82%
ROE(3y)27.2%
ROE(5y)30.44%
ROIC(3y)18.58%
ROIC(5y)20.71%
ERO Yearly ROA, ROE, ROICERO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

1.3 Margins

ERO's Profit Margin of 3.67% is fine compared to the rest of the industry. ERO outperforms 68.97% of its industry peers.
In the last couple of years the Profit Margin of ERO has grown nicely.
ERO has a Operating Margin of 22.40%. This is amongst the best in the industry. ERO outperforms 80.69% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO has a Gross Margin of 36.63%. This is in the better half of the industry: ERO outperforms 77.93% of its industry peers.
ERO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.4%
PM (TTM) 3.67%
GM 36.63%
OM growth 3Y-21.83%
OM growth 5Y0.75%
PM growth 3Y10.89%
PM growth 5YN/A
GM growth 3Y-14.17%
GM growth 5Y0.8%
ERO Yearly Profit, Operating, Gross MarginsERO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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2

2. Health

2.1 Basic Checks

ERO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ERO has been increased compared to 1 year ago.
The number of shares outstanding for ERO has been increased compared to 5 years ago.
The debt/assets ratio for ERO has been reduced compared to a year ago.
ERO Yearly Shares OutstandingERO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
ERO Yearly Total Debt VS Total AssetsERO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 2.02 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO's Altman-Z score of 2.02 is in line compared to the rest of the industry. ERO outperforms 42.07% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that ERO is somewhat dependend on debt financing.
The Debt to Equity ratio of ERO (0.71) is worse than 84.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF N/A
Altman-Z 2.02
ROIC/WACC0.66
WACC9.81%
ERO Yearly LT Debt VS Equity VS FCFERO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M

2.3 Liquidity

ERO has a Current Ratio of 0.68. This is a bad value and indicates that ERO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.68, ERO is doing worse than 93.10% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that ERO may have some problems paying its short term obligations.
ERO has a Quick ratio of 0.42. This is amonst the worse of the industry: ERO underperforms 93.10% of its industry peers.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.42
ERO Yearly Current Assets VS Current LiabilitesERO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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6

3. Growth

3.1 Past

The earnings per share for ERO have decreased by -8.89% in the last year.
Measured over the past years, ERO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.38% on average per year.
The Revenue has grown by 8.51% in the past year. This is quite good.
ERO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.89% yearly.
EPS 1Y (TTM)-8.89%
EPS 3Y-11.38%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y9.67%
Revenue growth 5Y12.89%
Sales Q2Q%18.67%

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 30.31% on average per year.
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.65% yearly.
EPS Next Y37.76%
EPS Next 2Y101.31%
EPS Next 3Y66.85%
EPS Next 5Y30.31%
Revenue Next Year23.11%
Revenue Next 2Y49.35%
Revenue Next 3Y33.37%
Revenue Next 5Y17.65%

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.
ERO Yearly Revenue VS EstimatesERO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ERO Yearly EPS VS EstimatesERO Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3 4

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.38, which indicates a correct valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued a bit cheaper than 73.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (28.28), we can say ERO is valued slightly cheaper.
The Price/Forward Earnings ratio is 3.81, which indicates a rather cheap valuation of ERO.
Based on the Price/Forward Earnings ratio, ERO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.38
Fwd PE 3.81
ERO Price Earnings VS Forward Price EarningsERO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ERO is valued a bit cheaper than 62.76% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.82
ERO Per share dataERO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

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.
A more expensive valuation may be justified as ERO's earnings are expected to grow with 66.85% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y101.31%
EPS Next 3Y66.85%

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0

5. Dividend

5.1 Amount

ERO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ERO COPPER CORP

NYSE:ERO (1/29/2025, 8:21:22 PM)

After market: 13.43 0 (0%)

13.43

+0.28 (+2.13%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05 2024-11-05/amc
Earnings (Next)N/A N/A
Inst Owners77.27%
Inst Owner Change0.38%
Ins Owners9.47%
Ins Owner ChangeN/A
Market Cap1.39B
Analysts80
Price Target22.81 (69.84%)
Short Float %3.36%
Short Ratio7.38
Dividend
Industry RankSector 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)-3.26%
Min EPS beat(2)-17.83%
Max EPS beat(2)11.31%
EPS beat(4)2
Avg EPS beat(4)7.17%
Min EPS beat(4)-18.14%
Max EPS beat(4)53.36%
EPS beat(8)3
Avg EPS beat(8)0.77%
EPS beat(12)4
Avg EPS beat(12)-10.21%
EPS beat(16)6
Avg EPS beat(16)-6.54%
Revenue beat(2)0
Avg Revenue beat(2)-12.01%
Min Revenue beat(2)-20.39%
Max Revenue beat(2)-3.62%
Revenue beat(4)1
Avg Revenue beat(4)-6.69%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)4.83%
Revenue beat(8)3
Avg Revenue beat(8)-4.78%
Revenue beat(12)4
Avg Revenue beat(12)-5.94%
Revenue beat(16)7
Avg Revenue beat(16)-1.8%
PT rev (1m)-4.06%
PT rev (3m)-14.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-34.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.83%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-18.69%
Valuation
Industry RankSector Rank
PE 16.38
Fwd PE 3.81
P/S 2.99
P/FCF N/A
P/OCF 10.35
P/B 1.95
P/tB 1.95
EV/EBITDA 9.82
EPS(TTM)0.82
EY6.11%
EPS(NY)3.53
Fwd EY26.25%
FCF(TTM)-2.45
FCFYN/A
OCF(TTM)1.3
OCFY9.66%
SpS4.49
BVpS6.89
TBVpS6.89
PEG (NY)0.43
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.13%
ROE 2.39%
ROCE 7.85%
ROIC 6.49%
ROICexc 6.59%
ROICexgc 6.59%
OM 22.4%
PM (TTM) 3.67%
GM 36.63%
FCFM N/A
ROA(3y)14.62%
ROA(5y)14.82%
ROE(3y)27.2%
ROE(5y)30.44%
ROIC(3y)18.58%
ROIC(5y)20.71%
ROICexc(3y)24.15%
ROICexc(5y)25.38%
ROICexgc(3y)24.15%
ROICexgc(5y)25.38%
ROCE(3y)22.45%
ROCE(5y)25.03%
ROICexcg growth 3Y-43.94%
ROICexcg growth 5Y-15.27%
ROICexc growth 3Y-43.94%
ROICexc growth 5Y-15.27%
OM growth 3Y-21.83%
OM growth 5Y0.75%
PM growth 3Y10.89%
PM growth 5YN/A
GM growth 3Y-14.17%
GM growth 5Y0.8%
F-Score3
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF N/A
Debt/EBITDA 2.59
Cap/Depr 419.97%
Cap/Sales 83.36%
Interest Coverage 3.48
Cash Conversion 68.35%
Profit Quality N/A
Current Ratio 0.68
Quick Ratio 0.42
Altman-Z 2.02
F-Score3
WACC9.81%
ROIC/WACC0.66
Cap/Depr(3y)480.33%
Cap/Depr(5y)394.17%
Cap/Sales(3y)71.42%
Cap/Sales(5y)57.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.89%
EPS 3Y-11.38%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y37.76%
EPS Next 2Y101.31%
EPS Next 3Y66.85%
EPS Next 5Y30.31%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y9.67%
Revenue growth 5Y12.89%
Sales Q2Q%18.67%
Revenue Next Year23.11%
Revenue Next 2Y49.35%
Revenue Next 3Y33.37%
Revenue Next 5Y17.65%
EBIT growth 1Y3.42%
EBIT growth 3Y-14.27%
EBIT growth 5Y13.74%
EBIT Next Year150.51%
EBIT Next 3Y88.05%
EBIT Next 5Y39.04%
FCF growth 1Y-180.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.88%
OCF growth 3Y0.06%
OCF growth 5Y14.49%