ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - NYSE:ERO - CA2960061091 - Common Stock
21.52 USD
-0.52 (-2.36%)
21.52 USD
0 (0%)
ERO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 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 evaluated to be cheap and growing strongly. This does not happen too often!
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.
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
ERO's Return On Assets of 7.34% is amongst the best of the industry. ERO outperforms 81.17% of its industry peers.
ERO has a better Return On Equity (15.57%) than 88.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.11%, ERO is in the better half of the industry, outperforming 77.92% 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 12.75%.
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's Profit Margin of 23.43% is amongst the best of the industry. ERO outperforms 88.31% of its industry peers.
ERO has a Operating Margin of 29.97%. This is amongst the best in the industry. ERO outperforms 83.12% 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 76.62% 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
ERO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ERO has more shares outstanding
The number of shares outstanding for ERO has been increased compared to 5 years ago.
The debt/assets ratio for ERO is higher compared to a year ago.
2.2 Solvency
ERO has an Altman-Z score of 2.48. 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.
ERO has a Altman-Z score (2.48) which is comparable to the rest of the 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's Debt to FCF ratio of 14.97 is fine compared to the rest of the industry. ERO outperforms 60.39% of its industry peers.
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 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.09
WACC8.36%
2.3 Liquidity
A Current Ratio of 0.82 indicates that ERO may have some problems paying its short term obligations.
With a Current ratio value of 0.82, ERO is not doing good in the industry: 87.66% of the companies in the same industry are doing better.
ERO has a Quick Ratio of 0.82. 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 (0.44) than 90.91% 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.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
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
The Earnings Per Share is expected to grow by 21.30% 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 17.87% yearly.
EPS Next Y155%
EPS Next 2Y100.32%
EPS Next 3Y61.87%
EPS Next 5Y21.3%
Revenue Next Year56.46%
Revenue Next 2Y46.59%
Revenue Next 3Y28.84%
Revenue Next 5Y17.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.22 indicates a rather expensive valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
ERO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.88, the valuation of ERO can be described as very cheap.
93.51% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
ERO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERO is cheaper than 72.08% of the companies in the same industry.
67.53% of the companies in the same industry are more expensive than ERO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.3 | ||
| EV/EBITDA | 10.51 |
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.
ERO's earnings are expected to grow with 61.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y100.32%
EPS Next 3Y61.87%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.52
-0.52 (-2.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner Change-2.26%
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap2.23B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.67
Price Target23.04 (7.06%)
Short Float %5.8%
Short Ratio5.86
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)-13.85%
Min EPS beat(2)-38.9%
Max EPS beat(2)11.2%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)4
Avg EPS beat(8)4.04%
EPS beat(12)5
Avg EPS beat(12)0.82%
EPS beat(16)6
Avg EPS beat(16)-7.43%
Revenue beat(2)0
Avg Revenue beat(2)-9.82%
Min Revenue beat(2)-13.23%
Max Revenue beat(2)-6.41%
Revenue beat(4)0
Avg Revenue beat(4)-10.16%
Min Revenue beat(4)-17.25%
Max Revenue beat(4)-3.77%
Revenue beat(8)1
Avg Revenue beat(8)-8.43%
Revenue beat(12)3
Avg Revenue beat(12)-6.57%
Revenue beat(16)4
Avg Revenue beat(16)-7%
PT rev (1m)21.24%
PT rev (3m)17.87%
EPS NQ rev (1m)-20.18%
EPS NQ rev (3m)-25.47%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-7.57%
Revenue NQ rev (1m)-7.77%
Revenue NQ rev (3m)-10.31%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-5.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 6.88 | ||
| P/S | 3.79 | ||
| P/FCF | 52.3 | ||
| P/OCF | 6.82 | ||
| P/B | 2.52 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)1.25
EY5.81%
EPS(NY)3.13
Fwd EY14.54%
FCF(TTM)0.41
FCFY1.91%
OCF(TTM)3.15
OCFY14.66%
SpS5.68
BVpS8.54
TBVpS8.54
PEG (NY)0.11
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 | 2.48 |
F-Score8
WACC8.36%
ROIC/WACC1.09
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 Y155%
EPS Next 2Y100.32%
EPS Next 3Y61.87%
EPS Next 5Y21.3%
Revenue 1Y (TTM)26.74%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%41.86%
Revenue Next Year56.46%
Revenue Next 2Y46.59%
Revenue Next 3Y28.84%
Revenue Next 5Y17.87%
EBIT growth 1Y69.59%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year194.25%
EBIT Next 3Y61.44%
EBIT Next 5Y36.92%
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 2 / 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 155% in the next year.