ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - TSX:ERO - CA2960061091 - Common Stock
28.99 CAD
-0.96 (-3.21%)
We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 792 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, but there are 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.
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
With an excellent Return On Assets value of 8.05%, ERO belongs to the best of the industry, outperforming 91.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.33%, ERO belongs to the top of the industry, outperforming 93.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.33%, ERO belongs to the best of the industry, outperforming 94.19% 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 12.40%.
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 96.09% of its industry peers.
Looking at the Operating Margin, with a value of 32.35%, ERO belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
ERO's Operating Margin has been stable in the last couple of years.
The Gross Margin of ERO (42.71%) is better than 93.81% of its industry peers.
ERO's Gross Margin has been stable in the last couple of years.
| 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) just above the Cost of Capital (WACC), ERO is creating some 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
ERO has an Altman-Z score of 2.45. 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 2.45, ERO is in line with its industry, outperforming 49.12% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that ERO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, ERO is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC1.1
WACC8.46%
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: 64.52% of the companies in the same industry are doing better.
ERO has a Quick Ratio of 0.84. This is a bad value and indicates that ERO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, ERO is doing worse than 68.94% of the companies in the same industry.
| 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.
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.
ERO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.59%.
The Revenue has been growing by 10.55% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 21.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.24% on average over the next years. This is quite good.
EPS Next Y163.4%
EPS Next 2Y88.5%
EPS Next 3Y56.19%
EPS Next 5Y21.3%
Revenue Next Year57.74%
Revenue Next 2Y43.85%
Revenue Next 3Y27.97%
Revenue Next 5Y11.24%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ERO is valuated correctly with a Price/Earnings ratio of 16.47.
92.55% of the companies in the same industry are more expensive than ERO, based on the Price/Earnings ratio.
ERO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.45 indicates a rather cheap valuation of ERO.
94.82% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.53. ERO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaper than 93.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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.
ERO has an outstanding profitability rating, which may justify a higher PE ratio.
ERO's earnings are expected to grow with 56.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y88.5%
EPS Next 3Y56.19%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (11/3/2025, 7:00:00 PM)
28.99
-0.96 (-3.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner ChangeN/A
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap3.00B
Revenue(TTM)535.97M
Net Income(TTM)142.69M
Analysts81.11
Price Target32.28 (11.35%)
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)22.12%
PT rev (3m)17.82%
EPS NQ rev (1m)-20.18%
EPS NQ rev (3m)-30.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)-7.77%
Revenue NQ rev (3m)-12.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 7.45 | ||
| P/S | 3.99 | ||
| P/FCF | N/A | ||
| P/OCF | 7.95 | ||
| P/B | 2.6 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)1.76
EY6.07%
EPS(NY)3.89
Fwd EY13.43%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)3.65
OCFY12.59%
SpS7.26
BVpS11.16
TBVpS11.16
PEG (NY)0.1
PEG (5Y)N/A
Graham Number21.02
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%
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-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 | 2.45 |
F-Score7
WACC8.46%
ROIC/WACC1.1
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 Y163.4%
EPS Next 2Y88.5%
EPS Next 3Y56.19%
EPS Next 5Y21.3%
Revenue 1Y (TTM)20.59%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
Revenue Next Year57.74%
Revenue Next 2Y43.85%
Revenue Next 3Y27.97%
Revenue Next 5Y11.24%
EBIT growth 1Y92.66%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year194.25%
EBIT Next 3Y61.44%
EBIT Next 5Y24.76%
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%
ERO COPPER CORP / ERO.CA FAQ
What is the ChartMill fundamental rating of ERO COPPER CORP (ERO.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERO.CA.
What is the valuation status for ERO stock?
ChartMill assigns a valuation rating of 8 / 10 to ERO COPPER CORP (ERO.CA). This can be considered as Undervalued.
How profitable is ERO COPPER CORP (ERO.CA) stock?
ERO COPPER CORP (ERO.CA) has a profitability rating of 8 / 10.
What is the financial health of ERO COPPER CORP (ERO.CA) stock?
The financial health rating of ERO COPPER CORP (ERO.CA) is 1 / 10.
What is the expected EPS growth for ERO COPPER CORP (ERO.CA) stock?
The Earnings per Share (EPS) of ERO COPPER CORP (ERO.CA) is expected to grow by 163.4% in the next year.