ERO COPPER CORP (ERO) Stock Fundamental Analysis
NYSE:ERO - New York Stock Exchange, Inc. - CA2960061091 - Common Stock - Currency: USD
ERO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. While ERO has a great profitability rating, there are quite some concerns on its financial health. ERO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
Each year in the past 5 years ERO has been profitable.
In the past 5 years ERO always reported a positive cash flow from operatings.
1.2 Ratios
ERO has a Return On Assets (1.13%) which is comparable to the rest of the industry.
With a Return On Equity value of 2.39%, ERO perfoms like the industry average, outperforming 59.86% of the companies in the same industry.
ERO's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. ERO outperforms 68.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERO is significantly above the industry average of 8.67%.
The 3 year average ROIC (18.58%) for ERO is well above the current ROIC(6.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of ERO (3.67%) is better than 65.49% of its industry peers.
In the last couple of years the Profit Margin of ERO has grown nicely.
ERO has a better Operating Margin (22.40%) than 80.28% of its industry peers.
In the last couple of years the Operating Margin of ERO has remained more or less at the same level.
ERO has a better Gross Margin (36.63%) than 77.46% 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERO 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.
Compared to 1 year ago, ERO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO has a Altman-Z score (1.86) which is comparable to the rest of the industry.
ERO has a Debt/Equity ratio of 0.71. This is a neutral value indicating ERO is somewhat dependend on debt financing.
ERO's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. ERO is outperformed by 83.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.67
WACC9.64%
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.
ERO's Current ratio of 0.68 is on the low side compared to the rest of the industry. ERO is outperformed by 92.25% of its industry peers.
ERO has a Quick 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.
ERO has a Quick ratio of 0.42. This is amonst the worse of the industry: ERO underperforms 92.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for ERO have decreased by -8.89% in the last year.
The earnings per share for ERO have been decreasing by -11.38% on average. This is quite bad
ERO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.51%.
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
The Earnings Per Share is expected to grow by 43.41% on average over the next years. This is a very strong growth
ERO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.38% yearly.
EPS Next Y6.17%
EPS Next 2Y62.73%
EPS Next 3Y49.56%
EPS Next 5Y43.41%
Revenue Next Year12.58%
Revenue Next 2Y40.66%
Revenue Next 3Y31.08%
Revenue Next 5Y20.38%
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
The Price/Earnings ratio is 14.04, which indicates a correct valuation of ERO.
ERO's Price/Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 81.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (29.75), we can say ERO is valued rather cheaply.
A Price/Forward Earnings ratio of 5.00 indicates a rather cheap valuation of ERO.
97.89% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
ERO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 5 |
4.2 Price Multiples
66.20% of the companies in the same industry are more expensive than ERO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 49.56% in the coming years.
PEG (NY)2.28
PEG (5Y)N/A
EPS Next 2Y62.73%
EPS Next 3Y49.56%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ERO (3/4/2025, 11:53:30 AM)
11.51
+0.12 (+1.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.35%
Inst Owner Change-3.86%
Ins Owners7.7%
Ins Owner ChangeN/A
Market Cap1.19B
Analysts81.25
Price Target22.05 (91.57%)
Short Float %5.37%
Short Ratio10.57
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)-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)0%
PT rev (3m)-10.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.57%
EPS NY rev (1m)-19.91%
EPS NY rev (3m)-22.94%
Revenue NQ rev (1m)-8.27%
Revenue NQ rev (3m)-14.2%
Revenue NY rev (1m)-8.56%
Revenue NY rev (3m)-9.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 5 | ||
| P/S | 2.57 | ||
| P/FCF | N/A | ||
| P/OCF | 8.89 | ||
| P/B | 1.67 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)0.82
EY7.12%
EPS(NY)2.3
Fwd EY20.02%
FCF(TTM)-2.44
FCFYN/A
OCF(TTM)1.29
OCFY11.24%
SpS4.48
BVpS6.87
TBVpS6.87
PEG (NY)2.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.86 |
F-Score3
WACC9.64%
ROIC/WACC0.67
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 Y6.17%
EPS Next 2Y62.73%
EPS Next 3Y49.56%
EPS Next 5Y43.41%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y9.67%
Revenue growth 5Y12.89%
Sales Q2Q%18.67%
Revenue Next Year12.58%
Revenue Next 2Y40.66%
Revenue Next 3Y31.08%
Revenue Next 5Y20.38%
EBIT growth 1Y3.42%
EBIT growth 3Y-14.27%
EBIT growth 5Y13.74%
EBIT Next Year150.51%
EBIT Next 3Y88.05%
EBIT Next 5Y49.63%
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%