ERO COPPER CORP (ERO) Stock Fundamental Analysis
NYSE:ERO - New York Stock Exchange, Inc. - CA2960061091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ERO. 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
ERO had positive earnings in the past year.
ERO had a positive operating cash flow in the past year.
Of the past 5 years ERO 4 years were profitable.
In the past 5 years ERO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.12%, ERO is doing good in the industry, outperforming 61.29% of the companies in the same industry.
The Return On Equity of ERO (2.65%) is better than 63.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.65%, ERO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ERO had an Average Return On Invested Capital over the past 3 years of 8.14%. This is below the industry average of 11.61%.
The last Return On Invested Capital (8.65%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROIC | 8.65% |
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 better Profit Margin (3.86%) than 68.39% of its industry peers.
ERO's Operating Margin of 30.81% is amongst the best of the industry. ERO outperforms 86.45% 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 41.85%, ERO belongs to the top of the industry, outperforming 83.23% 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 | 30.81% | ||
| PM (TTM) | 3.86% | ||
| GM | 41.85% |
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.
Compared to 1 year ago, ERO has more shares outstanding
ERO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ERO is higher compared to a year ago.
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 has a Altman-Z score of 2.02. This is in the lower half of the industry: ERO underperforms 60.00% of its industry peers.
ERO has a Debt/Equity ratio of 0.84. This is a neutral value indicating ERO is somewhat dependend on debt financing.
ERO's Debt to Equity ratio of 0.84 is on the low side compared to the rest of the industry. ERO is outperformed by 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.97
WACC8.93%
2.3 Liquidity
ERO has a Current Ratio of 1.05. This is a normal value and indicates that ERO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.05, ERO is doing worse than 84.52% of the companies in the same industry.
ERO has a Quick Ratio of 1.05. 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 worse Quick ratio (0.78) than 79.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.78% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.24%.
Measured over the past years, ERO shows a quite strong growth in Revenue. The Revenue has been growing by 10.55% on average per year.
EPS 1Y (TTM)22.78%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%118.75%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%18.24%
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 46.14% on average per year.
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.76% yearly.
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y46.14%
Revenue Next Year66.59%
Revenue Next 2Y41.49%
Revenue Next 3Y27.6%
Revenue Next 5Y19.76%
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
With a Price/Earnings ratio of 15.57, ERO is valued correctly.
83.23% 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 27.30. ERO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 4.96, the valuation of ERO can be described as very cheap.
ERO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 95.48% of the companies in the same industry.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 4.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued a bit cheaper than the industry average as 72.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.2 |
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 64.71% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y97.55%
EPS Next 3Y64.71%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.1
+0.34 (+2.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner Change0%
Ins Owners6.17%
Ins Owner ChangeN/A
Market Cap1.56B
Analysts82.22
Price Target19.17 (26.95%)
Short Float %4.27%
Short Ratio8.39
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)15.68%
Min EPS beat(2)-44.95%
Max EPS beat(2)76.3%
EPS beat(4)2
Avg EPS beat(4)6.21%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)3
Avg EPS beat(8)4.95%
EPS beat(12)4
Avg EPS beat(12)-7.23%
EPS beat(16)6
Avg EPS beat(16)-5.64%
Revenue beat(2)0
Avg Revenue beat(2)-10.51%
Min Revenue beat(2)-17.25%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-11.26%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)-3.62%
Revenue beat(8)1
Avg Revenue beat(8)-7.62%
Revenue beat(12)3
Avg Revenue beat(12)-7.35%
Revenue beat(16)6
Avg Revenue beat(16)-3.91%
PT rev (1m)2.8%
PT rev (3m)3.61%
EPS NQ rev (1m)1%
EPS NQ rev (3m)2.39%
EPS NY rev (1m)0%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 4.96 | ||
| P/S | 3.2 | ||
| P/FCF | N/A | ||
| P/OCF | 8.08 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)0.97
EY6.42%
EPS(NY)3.04
Fwd EY20.16%
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)1.87
OCFY12.38%
SpS4.73
BVpS6.89
TBVpS6.89
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROCE | 10.31% | ||
| ROIC | 8.65% | ||
| ROICexc | 9.15% | ||
| ROICexgc | 9.15% | ||
| OM | 30.81% | ||
| PM (TTM) | 3.86% | ||
| GM | 41.85% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-45.44%
ROICexcg 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-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 349.72% | ||
| Cap/Sales | 59.1% | ||
| Interest Coverage | 4.22 | ||
| Cash Conversion | 82.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.02 |
F-Score6
WACC8.93%
ROIC/WACC0.97
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)22.78%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%118.75%
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y46.14%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%18.24%
Revenue Next Year66.59%
Revenue Next 2Y41.49%
Revenue Next 3Y27.6%
Revenue Next 5Y19.76%
EBIT growth 1Y76.53%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year216.04%
EBIT Next 3Y61.79%
EBIT Next 5Y45.5%
FCF growth 1Y54.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.22%
OCF growth 3Y-26.39%
OCF growth 5Y2.62%