ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
25.37 USD
+1.19 (+4.92%)
25.3 USD
-0.07 (-0.28%)
Taking everything into account, ERO scores 5 out of 10 in our fundamental rating. ERO was compared to 154 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, but there are 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.
ERO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ERO had a positive operating cash flow.
1.2 Ratios
ERO has a Return On Assets of 7.34%. This is amongst the best in the industry. ERO outperforms 80.39% of its industry peers.
Looking at the Return On Equity, with a value of 15.57%, ERO belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.11%, ERO is doing good in the industry, outperforming 77.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 13.09%.
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 has a Profit Margin of 23.43%. This is amongst the best in the industry. ERO outperforms 86.93% of its industry peers.
ERO's Operating Margin of 29.97% is amongst the best of the industry. ERO outperforms 83.01% 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 (39.72%) than 76.47% 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 just above the Cost of Capital (WACC), so ERO is still creating some value.
The number of shares outstanding for ERO has been increased compared to 1 year ago.
Compared to 5 years ago, ERO has more shares outstanding
The debt/assets ratio for ERO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 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 2.61. This is comparable to the rest of the industry: ERO outperforms 43.79% 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.
With a Debt to Equity ratio value of 0.64, ERO is not doing good in the industry: 81.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.05
WACC8.69%
2.3 Liquidity
A Current Ratio of 0.82 indicates that ERO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, ERO is doing worse than 88.89% of the companies in the same industry.
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 Quick ratio of 0.44. This is amonst the worse of the industry: ERO underperforms 91.50% 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.
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.
Looking at the last year, ERO shows a very strong growth in Revenue. The Revenue has grown by 26.74%.
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)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
ERO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.30% yearly.
The Revenue is expected to grow by 17.87% on average over the next years. This is quite good.
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
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.
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
ERO is valuated rather expensively with a Price/Earnings ratio of 20.30.
ERO's Price/Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 83.66% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERO to the average of the S&P500 Index (26.31), we can say ERO is valued slightly cheaper.
ERO is valuated reasonably with a Price/Forward Earnings ratio of 8.11.
91.50% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ERO to the average of the S&P500 Index (36.59), we can say ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued a bit cheaper than the industry average as 69.93% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ERO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.66 | ||
| EV/EBITDA | 11.32 |
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 61.87% in the coming years.
PEG (NY)0.13
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 |
25.37
+1.19 (+4.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner Change13.47%
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap2.63B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts76.67
Price Target24.93 (-1.73%)
Short Float %4.55%
Short Ratio4.22
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)30.31%
PT rev (3m)31.63%
EPS NQ rev (1m)25.58%
EPS NQ rev (3m)30.19%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)10.12%
Revenue NQ rev (3m)11.98%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 8.11 | ||
| P/S | 4.47 | ||
| P/FCF | 61.66 | ||
| P/OCF | 8.04 | ||
| P/B | 2.97 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)1.25
EY4.93%
EPS(NY)3.13
Fwd EY12.34%
FCF(TTM)0.41
FCFY1.62%
OCF(TTM)3.15
OCFY12.43%
SpS5.68
BVpS8.54
TBVpS8.54
PEG (NY)0.13
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 | 2.61 |
F-Score8
WACC8.69%
ROIC/WACC1.05
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.