ERO COPPER CORP (ERO) Stock Fundamental Analysis
NYSE:ERO - New York Stock Exchange, Inc. - CA2960061091 - Common Stock - Currency: USD
Taking everything into account, ERO scores 5 out of 10 in our fundamental rating. ERO was compared to 153 industry peers in the Metals & Mining industry. While ERO has a great profitability rating, there are quite some 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.
ERO had a positive operating cash flow in the past year.
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
ERO's Return On Assets of 1.12% is fine compared to the rest of the industry. ERO outperforms 60.78% of its industry peers.
ERO's Return On Equity of 2.65% is fine compared to the rest of the industry. ERO outperforms 62.75% of its industry peers.
ERO has a better Return On Invested Capital (8.65%) than 79.08% of its industry peers.
ERO had an Average Return On Invested Capital over the past 3 years of 8.14%. This is in line with the industry average of 8.62%.
The 3 year average ROIC (8.14%) for ERO is below the current ROIC(8.65%), indicating increased profibility in the last year.
| 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
ERO has a better Profit Margin (3.86%) than 69.93% of its industry peers.
ERO has a Operating Margin of 30.81%. This is amongst the best in the industry. ERO outperforms 87.58% 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 83.66% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ERO is destroying value.
The number of shares outstanding for ERO has been increased compared to 1 year ago.
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 1.97 indicates that ERO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERO has a Altman-Z score (1.97) which is in line with its industry peers.
A Debt/Equity ratio of 0.84 indicates that ERO is somewhat dependend on debt financing.
The Debt to Equity ratio of ERO (0.84) is worse than 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.97
WACC8.96%
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's Current ratio of 1.05 is on the low side compared to the rest of the industry. ERO is outperformed by 83.66% of 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's Quick ratio of 0.78 is on the low side compared to the rest of the industry. ERO is outperformed by 77.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.78% over the past year.
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.
The Revenue has grown by 13.24% in the past year. This is quite good.
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)22.78%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%118.75%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%18.24%
3.2 Future
ERO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.64% yearly.
Based on estimates for the next years, ERO will show a very strong growth in Revenue. The Revenue will grow by 22.51% on average per year.
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y60.64%
Revenue Next Year66.59%
Revenue Next 2Y41.49%
Revenue Next 3Y27.6%
Revenue Next 5Y22.51%
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.
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
The Price/Earnings ratio is 14.73, which indicates a correct valuation of ERO.
84.31% of the companies in the same industry are more expensive than ERO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.17, ERO is valued a bit cheaper.
ERO is valuated cheaply with a Price/Forward Earnings ratio of 4.69.
97.39% of the companies in the same industry are more expensive than ERO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ERO to the average of the S&P500 Index (22.10), we can say ERO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 4.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERO indicates a somewhat cheap valuation: ERO is cheaper than 69.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.84 |
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.
A more expensive valuation may be justified as ERO's earnings are expected to grow with 64.71% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y97.55%
EPS Next 3Y64.71%
5. Dividend
5.1 Amount
ERO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.29
+0.17 (+1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners73.35%
Inst Owner Change-1.45%
Ins Owners7.7%
Ins Owner ChangeN/A
Market Cap1.48B
Analysts81.11
Price Target17.95 (25.61%)
Short Float %5.08%
Short Ratio9.21
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)-3.01%
PT rev (3m)-18.59%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)-33.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.59%
Revenue NQ rev (1m)-4.22%
Revenue NQ rev (3m)-16.99%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 4.69 | ||
| P/S | 3.02 | ||
| P/FCF | N/A | ||
| P/OCF | 7.64 | ||
| P/B | 2.07 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)0.97
EY6.79%
EPS(NY)3.04
Fwd EY21.3%
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)1.87
OCFY13.08%
SpS4.73
BVpS6.89
TBVpS6.89
PEG (NY)0.08
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 | 1.97 |
F-Score6
WACC8.96%
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)22.78%
EPS 3Y-30.56%
EPS 5Y-2.6%
EPS Q2Q%118.75%
EPS Next Y175.88%
EPS Next 2Y97.55%
EPS Next 3Y64.71%
EPS Next 5Y60.64%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-1.36%
Revenue growth 5Y10.55%
Sales Q2Q%18.24%
Revenue Next Year66.59%
Revenue Next 2Y41.49%
Revenue Next 3Y27.6%
Revenue Next 5Y22.51%
EBIT growth 1Y76.53%
EBIT growth 3Y-23.68%
EBIT growth 5Y9.03%
EBIT Next Year216.04%
EBIT Next 3Y61.79%
EBIT Next 5Y53.71%
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%