ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
25.27 USD
-0.68 (-2.62%)
25.03 USD
-0.24 (-0.95%)
We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 156 industry peers in the Metals & Mining industry. While ERO has a great profitability rating, there are quite some 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 7.34%, ERO is doing good in the industry, outperforming 79.35% of the companies in the same industry.
The Return On Equity of ERO (15.57%) is better than 87.74% of its industry peers.
With a decent Return On Invested Capital value of 9.11%, ERO is doing good in the industry, outperforming 75.48% 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 significantly below the industry average of 13.23%.
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
ERO has a better Profit Margin (23.43%) than 86.45% of its industry peers.
ERO's Operating Margin of 29.97% is amongst the best of the industry. ERO outperforms 82.58% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO's Gross Margin of 39.72% is fine compared to the rest 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
ERO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ERO has more shares outstanding than it did 1 year ago.
ERO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ERO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.68 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 2.68. This is comparable to the rest of the industry: ERO outperforms 42.58% of its industry peers.
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.
The Debt to FCF ratio of ERO (14.97) 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.
ERO has a Debt to Equity ratio of 0.64. This is amonst the worse of the industry: ERO underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.96
WACC9.52%
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: 89.68% of the companies in the same industry are doing better.
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 93.55% 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.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
The Revenue has grown by 26.74% in the past year. This is a very strong growth!
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
Based on estimates for the next years, ERO will show a quite strong growth in Revenue. The Revenue will grow by 16.46% on average per year.
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
With a Price/Earnings ratio of 20.22, ERO is valued on the expensive side.
Based on the Price/Earnings ratio, ERO is valued cheaper than 83.23% of the companies in the same industry.
ERO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.74, which indicates a rather cheap valuation of ERO.
ERO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 94.84% of the companies in the same industry.
ERO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
ERO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERO is cheaper than 70.32% of the companies 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 | 61.41 | ||
| EV/EBITDA | 11.74 |
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.
ERO has a very decent profitability rating, which may justify a higher PE ratio.
ERO's earnings are expected to grow with 71.24% in the coming years. This may justify a more expensive valuation.
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 | 0% |
25.27
-0.68 (-2.62%)
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 Cap2.62B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.84
Price Target27.02 (6.93%)
Short Float %3.21%
Short Ratio2.86
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)17.27%
PT rev (3m)41.31%
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)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 6.74 | ||
| P/S | 4.45 | ||
| P/FCF | 61.41 | ||
| P/OCF | 8.01 | ||
| P/B | 2.96 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)1.25
EY4.95%
EPS(NY)3.75
Fwd EY14.84%
FCF(TTM)0.41
FCFY1.63%
OCF(TTM)3.15
OCFY12.48%
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 | 2.68 |
F-Score8
WACC9.52%
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.