ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
Canada - TSX:ERO - CA2960061091 - Common Stock
30.23 CAD
+0.31 (+1.04%)
Overall ERO gets a fundamental rating of 5 out of 10. We evaluated ERO against 818 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
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.
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 91.69% of the companies in the same industry.
ERO has a Return On Equity of 17.33%. This is amongst the best in the industry. ERO outperforms 94.13% of its industry peers.
With an excellent Return On Invested Capital value of 9.33%, ERO belongs to the best of the industry, outperforming 94.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ERO is below the industry average of 12.11%.
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 96.21% of its industry peers.
ERO's Operating Margin of 32.35% is amongst the best of the industry. ERO outperforms 95.35% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO has a Gross Margin of 42.71%. This is amongst the best in the industry. ERO outperforms 93.89% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERO is still creating some value.
Compared to 1 year ago, ERO has more shares outstanding
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 2.52. 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.
The Altman-Z score of ERO (2.52) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that ERO is somewhat dependend on debt financing.
The Debt to Equity ratio of ERO (0.70) is worse than 74.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.52 |
ROIC/WACC1.08
WACC8.63%
2.3 Liquidity
ERO has a Current 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.
With a Current ratio value of 0.84, ERO is not doing good in the industry: 63.69% 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 68.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.23% over the past year.
ERO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.60% yearly.
The Revenue has grown by 20.59% in the past year. This is a very strong growth!
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)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
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.24% yearly.
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
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
With a Price/Earnings ratio of 17.27, ERO is valued on the expensive side.
Based on the Price/Earnings ratio, ERO is valued cheaply inside the industry as 93.40% of the companies are valued more expensively.
ERO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.81, which indicates a rather cheap valuation of ERO.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 96.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued cheaper than 94.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.92 |
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)0.11
PEG (5Y)N/A
EPS Next 2Y88.5%
EPS Next 3Y56.19%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (10/6/2025, 7:00:00 PM)
30.23
+0.31 (+1.04%)
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 Cap3.13B
Analysts81.11
Price Target26.68 (-11.74%)
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)1.45%
PT rev (3m)1.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.87%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.05%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-5.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 7.81 | ||
| P/S | 4.19 | ||
| P/FCF | N/A | ||
| P/OCF | 8.33 | ||
| P/B | 2.72 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)1.75
EY5.79%
EPS(NY)3.87
Fwd EY12.8%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)3.63
OCFY12%
SpS7.22
BVpS11.09
TBVpS11.09
PEG (NY)0.11
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 | 2.52 |
F-Score7
WACC8.63%
ROIC/WACC1.08
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%