ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
30.99 USD
+1.47 (+4.98%)
31.19 USD
+0.2 (+0.65%)
We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 156 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
- ERO had positive earnings in the past year.
- ERO had a positive operating cash flow in the past year.
- ERO had positive earnings in 4 of the past 5 years.
- In the past 5 years ERO always reported a positive cash flow from operatings.
1.2 Ratios
- ERO's Return On Assets of 7.34% is amongst the best of the industry. ERO outperforms 81.41% of its industry peers.
- The Return On Equity of ERO (15.57%) is better than 89.10% of its industry peers.
- ERO has a better Return On Invested Capital (9.11%) than 76.28% of its industry peers.
- ERO had an Average Return On Invested Capital over the past 3 years of 8.14%. This is below the industry average of 10.34%.
- 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 87.18% of its industry peers.
- ERO has a better Operating Margin (29.97%) than 82.69% of its industry peers.
- In the last couple of years the Operating Margin of ERO has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 39.72%, ERO is in the better half of the industry, outperforming 76.28% 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
- ERO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ERO has more shares outstanding
- Compared to 5 years ago, ERO has more shares outstanding
- Compared to 1 year ago, ERO has a worse debt to assets ratio.
2.2 Solvency
- ERO has an Altman-Z score of 2.94. 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.
- With a Altman-Z score value of 2.94, ERO perfoms like the industry average, outperforming 42.95% of the companies in the same 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 Debt to FCF ratio (14.97) which is comparable to the rest of the industry.
- 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 77.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.94
WACC9.68%
2.3 Liquidity
- A Current Ratio of 0.82 indicates that ERO may have some problems paying its short term obligations.
- ERO has a worse Current ratio (0.82) than 88.46% of its industry peers.
- A Quick Ratio of 0.44 indicates that ERO may have some problems paying its short term obligations.
- ERO has a worse Quick ratio (0.44) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
- ERO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.44%, which is quite impressive.
- ERO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.60% yearly.
- Looking at the last year, ERO shows a very strong growth in Revenue. 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
- 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
- ERO is valuated rather expensively with a Price/Earnings ratio of 24.79.
- 83.97% of the companies in the same industry are more expensive than ERO, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.94. ERO is around the same levels.
- Based on the Price/Forward Earnings ratio of 8.08, the valuation of ERO can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 94.23% of the companies listed in the same industry.
- ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 8.08 |
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.
- Based on the Price/Free Cash Flow ratio, ERO is valued a bit cheaper than 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.32 | ||
| EV/EBITDA | 13.36 |
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.
- ERO has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ERO's earnings are expected to grow with 71.79% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y121.75%
EPS Next 3Y71.79%
5. Dividend
5.1 Amount
- No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.99
+1.47 (+4.98%)
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 Cap3.21B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts75
Price Target28.5 (-8.03%)
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 | 24.79 | ||
| Fwd PE | 8.08 | ||
| P/S | 5.46 | ||
| P/FCF | 75.32 | ||
| P/OCF | 9.83 | ||
| P/B | 3.63 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)1.25
EY4.03%
EPS(NY)3.84
Fwd EY12.38%
FCF(TTM)0.41
FCFY1.33%
OCF(TTM)3.15
OCFY10.18%
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 | 2.94 |
F-Score8
WACC9.68%
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 24.79 and the Price/Book (PB) ratio is 3.63.