ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERO - CA2960061091 - Common Stock
29.27 USD
+0.18 (+0.62%)
29.53 USD
+0.26 (+0.89%)
We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 157 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
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.
Each year in the past 5 years ERO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.34%, ERO belongs to the best of the industry, outperforming 80.89% of the companies in the same industry.
ERO has a better Return On Equity (15.57%) than 89.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.11%, ERO is in the better half of the industry, outperforming 75.80% of the companies in the same industry.
ERO had an Average Return On Invested Capital over the past 3 years of 8.14%. This is below the industry average of 10.33%.
The last Return On Invested Capital (9.11%) for ERO is above the 3 year average (8.14%), which is a sign of increasing profitability.
| 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's Profit Margin of 23.43% is amongst the best of the industry. ERO outperforms 86.62% of its industry peers.
Looking at the Operating Margin, with a value of 29.97%, ERO belongs to the top of the industry, outperforming 82.80% of the companies in the same industry.
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 75.80% 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
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.
ERO has a worse debt/assets ratio than last year.
2.2 Solvency
ERO has an Altman-Z score of 2.92. 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.
With a Altman-Z score value of 2.92, ERO perfoms like the industry average, outperforming 46.50% of the companies in the same industry.
The Debt to FCF ratio of ERO is 14.97, which is on the high side as it means it would take ERO, 14.97 years of fcf income to pay off all of its debts.
ERO has a Debt to FCF ratio of 14.97. This is comparable to the rest of the industry: ERO outperforms 58.60% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that ERO is somewhat dependend on debt financing.
The Debt to Equity ratio of ERO (0.64) is worse than 78.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.97
WACC9.41%
2.3 Liquidity
ERO has a Current 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's Current ratio of 0.82 is on the low side compared to the rest of the industry. ERO is outperformed by 87.90% of its industry peers.
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's Quick ratio of 0.44 is on the low side compared to the rest of the industry. ERO is outperformed by 91.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.44% over the past year.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
The Revenue has grown by 26.74% in the past year. This is a very strong growth!
The Revenue has been growing by 10.55% on average over the past years. This is quite good.
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
Based on estimates for the next years, ERO will show a very strong growth in Earnings Per Share. The EPS will grow by 33.36% on average per year.
ERO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.46% yearly.
EPS Next Y178.36%
EPS Next 2Y121.75%
EPS Next 3Y71.79%
EPS Next 5Y33.36%
Revenue Next Year60.62%
Revenue Next 2Y52.71%
Revenue Next 3Y32.18%
Revenue Next 5Y16.46%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.42, which indicates a rather expensive current valuation of ERO.
Compared to the rest of the industry, the Price/Earnings ratio of ERO indicates a somewhat cheap valuation: ERO is cheaper than 79.62% of the companies listed in the same industry.
ERO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 7.63, the valuation of ERO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 93.63% of the companies in the same industry.
ERO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
ERO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERO is cheaper than 68.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERO indicates a somewhat cheap valuation: ERO is cheaper than 67.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.14 | ||
| EV/EBITDA | 13.19 |
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 a very decent profitability rating, which may justify a higher PE ratio.
ERO's earnings are expected to grow with 71.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y121.75%
EPS Next 3Y71.79%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
29.27
+0.18 (+0.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners76%
Inst Owner Change0%
Ins Owners5.99%
Ins Owner ChangeN/A
Market Cap3.03B
Revenue(TTM)588.23M
Net Income(TTM)137.81M
Analysts75
Price Target27.79 (-5.06%)
Short Float %3.09%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)11.48%
PT rev (3m)45.26%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)33.57%
EPS NY rev (1m)1.13%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 7.63 | ||
| P/S | 5.16 | ||
| P/FCF | 71.14 | ||
| P/OCF | 9.28 | ||
| P/B | 3.43 | ||
| P/tB | 3.43 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)1.25
EY4.27%
EPS(NY)3.84
Fwd EY13.1%
FCF(TTM)0.41
FCFY1.41%
OCF(TTM)3.15
OCFY10.78%
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 | 2.92 |
F-Score8
WACC9.41%
ROIC/WACC0.97
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 Y178.36%
EPS Next 2Y121.75%
EPS Next 3Y71.79%
EPS Next 5Y33.36%
Revenue 1Y (TTM)26.74%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%41.86%
Revenue Next Year60.62%
Revenue Next 2Y52.71%
Revenue Next 3Y32.18%
Revenue Next 5Y16.46%
EBIT growth 1Y69.59%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year204.36%
EBIT Next 3Y73.55%
EBIT Next 5Y33.96%
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 fundamental rating for ERO stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERO.
What is the valuation status of ERO COPPER CORP (ERO) stock?
ChartMill assigns a valuation rating of 7 / 10 to ERO COPPER CORP (ERO). This can be considered as Undervalued.
What is the profitability of ERO stock?
ERO COPPER CORP (ERO) has a profitability rating of 7 / 10.
What is the valuation of ERO COPPER CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ERO COPPER CORP (ERO) is 23.42 and the Price/Book (PB) ratio is 3.43.