ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
25.95 USD
+0.8 (+3.18%)
26.0001 USD
+0.05 (+0.19%)
Overall ERO gets a fundamental rating of 5 out of 10. We evaluated ERO against 155 industry peers in the Metals & Mining industry. While ERO belongs to the best of the industry regarding profitability, 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.
Of the past 5 years ERO 4 years were profitable.
ERO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERO has a Return On Assets of 7.34%. This is in the better half of the industry: ERO outperforms 80.00% of its industry peers.
ERO has a Return On Equity of 15.57%. This is amongst the best in the industry. ERO outperforms 87.74% of its industry peers.
ERO has a Return On Invested Capital of 9.11%. This is in the better half of the industry: ERO outperforms 76.13% of its industry peers.
ERO had an Average Return On Invested Capital over the past 3 years of 8.14%. This is significantly below the industry average of 13.15%.
The last Return On Invested Capital (9.11%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 23.43%, ERO belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
ERO has a better Operating Margin (29.97%) than 82.58% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO has a Gross Margin of 39.72%. This is in the better half of the industry: ERO outperforms 75.48% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ERO is destroying value.
ERO has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.72 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.72, ERO perfoms like the industry average, outperforming 42.58% of the companies in the same 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.
With a Debt to FCF ratio value of 14.97, ERO perfoms like the industry average, outperforming 56.77% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that 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 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.96
WACC9.51%
2.3 Liquidity
A Current Ratio of 0.82 indicates that ERO may have some problems paying its short term obligations.
ERO has a Current ratio of 0.82. This is amonst the worse of the industry: ERO underperforms 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 has a Quick ratio of 0.44. This is amonst the worse of the industry: ERO underperforms 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.
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 a strong growth in Revenue. In the last year, the Revenue has grown by 26.74%.
The Revenue has been growing by 10.55% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 33.36% on average over the next years. This is a very strong growth
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 20.76 indicates a rather expensive valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaper than 81.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. ERO is valued slightly cheaper when compared to this.
ERO is valuated cheaply with a Price/Forward Earnings ratio of 6.92.
Based on the Price/Forward Earnings ratio, ERO is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ERO to the average of the S&P500 Index (23.96), we can say ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 6.92 |
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 69.68% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ERO is valued a bit cheaper than 67.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.07 | ||
| EV/EBITDA | 12 |
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 71.24% in the coming years.
PEG (NY)0.12
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 |
25.95
+0.8 (+3.18%)
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 Cap2.69B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.84
Price Target27.02 (4.12%)
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 | 20.76 | ||
| Fwd PE | 6.92 | ||
| P/S | 4.57 | ||
| P/FCF | 63.07 | ||
| P/OCF | 8.23 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 12 |
EPS(TTM)1.25
EY4.82%
EPS(NY)3.75
Fwd EY14.45%
FCF(TTM)0.41
FCFY1.59%
OCF(TTM)3.15
OCFY12.15%
SpS5.68
BVpS8.54
TBVpS8.54
PEG (NY)0.12
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 | 2.72 |
F-Score8
WACC9.51%
ROIC/WACC0.96
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 1 / 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.