ERO COPPER CORP (ERO) Stock Fundamental Analysis
USA - NYSE:ERO - CA2960061091 - Common Stock
21.35 USD
-0.14 (-0.65%)
21.53 USD
+0.18 (+0.84%)
We assign a fundamental rating of 5 out of 10 to ERO. ERO was compared to 154 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. 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
ERO had positive earnings in the past year.
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
The Return On Assets of ERO (8.05%) is better than 83.77% of its industry peers.
ERO has a Return On Equity of 17.33%. This is amongst the best in the industry. ERO outperforms 88.96% of its industry peers.
ERO has a better Return On Invested Capital (9.33%) than 80.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERO is below the industry average of 12.54%.
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 90.91% of its industry peers.
The Operating Margin of ERO (32.35%) is better than 84.42% of its industry peers.
In the last couple of years the Operating Margin of ERO has remained more or less at the same level.
The Gross Margin of ERO (42.71%) is better than 81.17% 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.
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
An Altman-Z score of 2.50 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.50, ERO is in line with its industry, outperforming 42.21% of the companies in the same 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 82.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC1.11
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.84 indicates that ERO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, ERO is doing worse than 88.31% of the companies in the same industry.
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.
The Quick ratio of ERO (0.52) is worse than 88.96% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
The Revenue has grown by 20.59% 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)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.
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
Based on the Price/Earnings ratio of 17.08, the valuation of ERO can be described as rather expensive.
84.42% of the companies in the same industry are more expensive than ERO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.11. ERO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 7.70, the valuation of ERO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ERO is valued cheaper than 91.56% of the companies in the same industry.
ERO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.8 |
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.
A more expensive valuation may be justified as ERO's earnings are expected to grow with 56.19% in the coming years.
PEG (NY)0.1
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 |
21.35
-0.14 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.32%
Inst Owner Change-5.74%
Ins Owners6.14%
Ins Owner ChangeN/A
Market Cap2.21B
Revenue(TTM)535.97M
Net Income(TTM)142.69M
Analysts81.11
Price Target23.19 (8.62%)
Short Float %5.8%
Short Ratio5.86
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)21.29%
PT rev (3m)16.2%
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 | 17.08 | ||
| Fwd PE | 7.7 | ||
| P/S | 4.13 | ||
| P/FCF | N/A | ||
| P/OCF | 8.22 | ||
| P/B | 2.69 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)1.25
EY5.85%
EPS(NY)2.77
Fwd EY12.98%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)2.6
OCFY12.17%
SpS5.17
BVpS7.95
TBVpS7.95
PEG (NY)0.1
PEG (5Y)N/A
Graham Number14.95
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 | 2.5 |
F-Score7
WACC8.41%
ROIC/WACC1.11
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 FAQ
What is the ChartMill fundamental rating of ERO COPPER CORP (ERO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERO.
What is the valuation status for ERO stock?
ChartMill assigns a valuation rating of 7 / 10 to ERO COPPER CORP (ERO). This can be considered as Undervalued.
How profitable is ERO COPPER CORP (ERO) stock?
ERO COPPER CORP (ERO) has a profitability rating of 8 / 10.
What is the financial health of ERO COPPER CORP (ERO) stock?
The financial health rating of ERO COPPER CORP (ERO) is 1 / 10.
What is the expected EPS growth for ERO COPPER CORP (ERO) stock?
The Earnings per Share (EPS) of ERO COPPER CORP (ERO) is expected to grow by 163.4% in the next year.