ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
TSX:ERO - CA2960061091 - Common Stock
19.93 CAD
+0.44 (+2.26%)
Overall ERO gets a fundamental rating of 5 out of 10. We evaluated ERO against 791 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.
In the past 5 years ERO always reported a positive cash flow from operatings.
1.2 Ratios
ERO's Return On Assets of 8.05% is amongst the best of the industry. ERO outperforms 91.91% of its industry peers.
The Return On Equity of ERO (17.33%) is better than 93.93% of its industry peers.
ERO's Return On Invested Capital of 9.33% is amongst the best of the industry. ERO outperforms 94.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 11.97%.
The last Return On Invested Capital (9.33%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.05% | ||
| ROE | 17.33% | ||
| ROIC | 9.33% |
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 26.62%. This is amongst the best in the industry. ERO outperforms 95.83% of its industry peers.
Looking at the Operating Margin, with a value of 32.35%, ERO belongs to the top of the industry, outperforming 94.56% of the companies in the same industry.
ERO's Operating Margin has been stable in the last couple of years.
ERO has a better Gross Margin (42.71%) than 93.17% 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 | 32.35% | ||
| PM (TTM) | 26.62% | ||
| GM | 42.71% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
ERO has an Altman-Z score of 2.05. 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.
Looking at the Altman-Z score, with a value of 2.05, ERO is in line with its industry, outperforming 53.22% of the companies in the same industry.
ERO has a Debt/Equity ratio of 0.70. This is a neutral value indicating ERO is somewhat dependend on debt financing.
The Debt to Equity ratio of ERO (0.70) is worse than 74.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.98
WACC9.47%
2.3 Liquidity
A Current Ratio of 0.84 indicates that ERO may have some problems paying its short term obligations.
With a Current ratio value of 0.84, ERO is not doing good in the industry: 62.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that ERO may have some problems paying its short term obligations.
ERO's Quick ratio of 0.52 is on the low side compared to the rest of the industry. ERO is outperformed by 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ERO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.23%, which is quite impressive.
ERO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.60% yearly.
ERO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.59%.
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)71.23%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%155.56%
Revenue 1Y (TTM)20.59%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
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.
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.34% yearly.
EPS Next Y163.16%
EPS Next 2Y88.34%
EPS Next 3Y56.21%
EPS Next 5Y21.3%
Revenue Next Year57.86%
Revenue Next 2Y43.28%
Revenue Next 3Y27.89%
Revenue Next 5Y11.34%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.52 indicates a reasonable valuation of ERO.
ERO's Price/Earnings ratio is rather cheap when compared to the industry. ERO is cheaper than 94.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. ERO is valued rather cheaply when compared to this.
ERO is valuated cheaply with a Price/Forward Earnings ratio of 5.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 96.46% of the companies listed in the same industry.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 5.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.02 |
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 excellent profitability rating of ERO may justify a higher PE ratio.
ERO's earnings are expected to grow with 56.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y88.34%
EPS Next 3Y56.21%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (8/22/2025, 7:00:00 PM)
19.93
+0.44 (+2.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner ChangeN/A
Ins Owners6.17%
Ins Owner ChangeN/A
Market Cap2.06B
Analysts81.05
Price Target26.3 (31.96%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)43.75%
Min EPS beat(2)11.2%
Max EPS beat(2)76.3%
EPS beat(4)2
Avg EPS beat(4)6.18%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)4
Avg EPS beat(8)7.42%
EPS beat(12)5
Avg EPS beat(12)-2.7%
EPS beat(16)6
Avg EPS beat(16)-5.04%
Revenue beat(2)0
Avg Revenue beat(2)-5.09%
Min Revenue beat(2)-6.41%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-11.95%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)-3.77%
Revenue beat(8)1
Avg Revenue beat(8)-7.79%
Revenue beat(12)3
Avg Revenue beat(12)-6.75%
Revenue beat(16)5
Avg Revenue beat(16)-5.93%
PT rev (1m)-3.99%
PT rev (3m)6.25%
EPS NQ rev (1m)-11.42%
EPS NQ rev (3m)-27.5%
EPS NY rev (1m)-4.61%
EPS NY rev (3m)-4.61%
Revenue NQ rev (1m)-2.36%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-5.24%
Revenue NY rev (3m)-5.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 5.21 | ||
| P/S | 2.79 | ||
| P/FCF | N/A | ||
| P/OCF | 5.55 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)1.73
EY8.68%
EPS(NY)3.83
Fwd EY19.19%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)3.59
OCFY18.02%
SpS7.15
BVpS10.99
TBVpS10.99
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.05% | ||
| ROE | 17.33% | ||
| ROCE | 11.11% | ||
| ROIC | 9.33% | ||
| ROICexc | 9.75% | ||
| ROICexgc | 9.75% | ||
| OM | 32.35% | ||
| PM (TTM) | 26.62% | ||
| GM | 42.71% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-45.44%
ROICexcg 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-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 333.17% | ||
| Cap/Sales | 53.24% | ||
| Interest Coverage | 4.47 | ||
| Cash Conversion | 103.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.05 |
F-Score7
WACC9.47%
ROIC/WACC0.98
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)71.23%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%155.56%
EPS Next Y163.16%
EPS Next 2Y88.34%
EPS Next 3Y56.21%
EPS Next 5Y21.3%
Revenue 1Y (TTM)20.59%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
Revenue Next Year57.86%
Revenue Next 2Y43.28%
Revenue Next 3Y27.89%
Revenue Next 5Y11.34%
EBIT growth 1Y92.66%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year216.04%
EBIT Next 3Y61.79%
EBIT Next 5Y24.7%
FCF growth 1Y93.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.87%
OCF growth 3Y-26.39%
OCF growth 5Y2.62%