ERO COPPER CORP (ERO.CA) Stock Fundamental Analysis
TSX:ERO - Toronto Stock Exchange - CA2960061091 - Common Stock - Currency: CAD
Overall ERO gets a fundamental rating of 6 out of 10. We evaluated ERO against 794 industry peers in the Metals & Mining industry. ERO scores excellent on profitability, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: ERO is growing strongly while it also seems undervalued.
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
The Return On Assets of ERO (1.12%) is better than 85.77% of its industry peers.
Looking at the Return On Equity, with a value of 2.65%, ERO belongs to the top of the industry, outperforming 87.03% of the companies in the same industry.
ERO's Return On Invested Capital of 8.65% is amongst the best of the industry. ERO outperforms 93.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 11.36%.
The last Return On Invested Capital (8.65%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROIC | 8.65% |
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
With an excellent Profit Margin value of 3.86%, ERO belongs to the best of the industry, outperforming 90.05% of the companies in the same industry.
ERO has a Operating Margin of 30.81%. This is amongst the best in the industry. ERO outperforms 94.46% of its industry peers.
ERO's Operating Margin has been stable in the last couple of years.
ERO's Gross Margin of 41.85% is amongst the best of the industry. ERO outperforms 93.83% of its industry peers.
ERO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 3.86% | ||
| GM | 41.85% |
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.
Compared to 1 year ago, ERO has more shares outstanding
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 1.93 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 1.93. This is comparable to the rest of the industry: ERO outperforms 52.52% of its industry peers.
ERO has a Debt/Equity ratio of 0.84. This is a neutral value indicating ERO is somewhat dependend on debt financing.
ERO has a worse Debt to Equity ratio (0.84) than 75.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.95
WACC9.1%
2.3 Liquidity
ERO has a Current Ratio of 1.05. This is a normal value and indicates that ERO is financially healthy and should not expect problems in meeting its short term obligations.
ERO has a Current ratio (1.05) which is in line with its industry peers.
ERO has a Quick Ratio of 1.05. 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 0.78. This is in the lower half of the industry: ERO underperforms 61.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 |
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.
Looking at the last year, ERO shows a quite strong growth in Revenue. The Revenue has grown by 10.01% in the last year.
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)10.01%
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 46.14% 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 19.76% on average per year.
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y46.14%
Revenue Next Year65.03%
Revenue Next 2Y43.21%
Revenue Next 3Y27.68%
Revenue Next 5Y19.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 10.87 indicates a reasonable valuation of ERO.
Based on the Price/Earnings ratio, ERO is valued cheaply inside the industry as 94.84% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.41. ERO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.45, the valuation of ERO can be described as very cheap.
96.73% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 4.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERO indicates a rather cheap valuation: ERO is cheaper than 92.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.52 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
ERO's earnings are expected to grow with 64.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y97.55%
EPS Next 3Y64.71%
5. Dividend
5.1 Amount
No dividends for ERO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ERO (8/11/2025, 7:00:00 PM)
18.69
-0.54 (-2.81%)
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 Cap1.94B
Analysts81.05
Price Target26.41 (41.31%)
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)1
Avg EPS beat(2)15.68%
Min EPS beat(2)-44.95%
Max EPS beat(2)76.3%
EPS beat(4)2
Avg EPS beat(4)6.21%
Min EPS beat(4)-44.95%
Max EPS beat(4)76.3%
EPS beat(8)3
Avg EPS beat(8)4.95%
EPS beat(12)4
Avg EPS beat(12)-7.23%
EPS beat(16)6
Avg EPS beat(16)-5.64%
Revenue beat(2)0
Avg Revenue beat(2)-10.51%
Min Revenue beat(2)-17.25%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-11.26%
Min Revenue beat(4)-20.39%
Max Revenue beat(4)-3.62%
Revenue beat(8)1
Avg Revenue beat(8)-7.62%
Revenue beat(12)3
Avg Revenue beat(12)-7.35%
Revenue beat(16)6
Avg Revenue beat(16)-3.91%
PT rev (1m)0.33%
PT rev (3m)6.69%
EPS NQ rev (1m)-5.66%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-8.46%
Revenue NQ rev (3m)-12.32%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 4.45 | ||
| P/S | 2.87 | ||
| P/FCF | N/A | ||
| P/OCF | 7.25 | ||
| P/B | 1.97 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)1.72
EY9.2%
EPS(NY)4.2
Fwd EY22.45%
FCF(TTM)-1.27
FCFYN/A
OCF(TTM)2.58
OCFY13.78%
SpS6.51
BVpS9.5
TBVpS9.5
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.65% | ||
| ROCE | 10.31% | ||
| ROIC | 8.65% | ||
| ROICexc | 9.15% | ||
| ROICexgc | 9.15% | ||
| OM | 30.81% | ||
| PM (TTM) | 3.86% | ||
| GM | 41.85% | ||
| 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-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 349.72% | ||
| Cap/Sales | 59.1% | ||
| Interest Coverage | 4.22 | ||
| Cash Conversion | 82.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.93 |
F-Score6
WACC9.1%
ROIC/WACC0.95
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 Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y46.14%
Revenue 1Y (TTM)10.01%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%39.63%
Revenue Next Year65.03%
Revenue Next 2Y43.21%
Revenue Next 3Y27.68%
Revenue Next 5Y19.76%
EBIT growth 1Y76.53%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year216.04%
EBIT Next 3Y61.79%
EBIT Next 5Y45.5%
FCF growth 1Y54.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.22%
OCF growth 3Y-26.39%
OCF growth 5Y2.62%