Ero Copper Corp.
Ero Copper Corp. Fundamental Analysis
Ero Copper Corp. (ERO) shows strong financial fundamentals with a PE ratio of 23.66, profit margin of 23.43%, and ROE of 18.32%. The company generates $0.6B in annual revenue with strong year-over-year growth of 10.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ERO's fundamental strength across five key dimensions:
Efficiency Score
WeakERO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentERO trades at attractive valuation levels.
Growth Score
ModerateERO shows steady but slowing expansion.
Financial Health Score
ModerateERO shows balanced financial health with some risks.
Profitability Score
ExcellentERO achieves industry-leading margins.
Key Financial Metrics
Is ERO Expensive or Cheap?
P/E Ratio
ERO trades at 23.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ERO's PEG of -5.44 indicates potential undervaluation.
Price to Book
The market values Ero Copper Corp. at 3.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.24 times EBITDA. This is generally considered low.
How Well Does ERO Make Money?
Net Profit Margin
For every $100 in sales, Ero Copper Corp. keeps $23.43 as profit after all expenses.
Operating Margin
Core operations generate 30.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.32 in profit for every $100 of shareholder equity.
ROA
Ero Copper Corp. generates $7.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ero Copper Corp. generates strong operating cash flow of $314.83M, reflecting robust business health.
Free Cash Flow
Ero Copper Corp. produces free cash flow of $32.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.32 in free cash annually.
FCF Yield
ERO converts 1.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How ERO Stacks Against Its Sector Peers
| Metric | ERO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.66 | 27.01 | Better (Cheaper) |
| ROE | 18.32% | 949.00% | Weak |
| Net Margin | 23.43% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.72 | 0.48 | Weak (High Leverage) |
| Current Ratio | 0.82 | 4.42 | Weak Liquidity |
| ROA | 7.35% | -6411.00% (disorted) | Weak |
ERO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ero Copper Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.48%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-165.67%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
0.24%
Industry Style: Cyclical, Commodity, Value
Growing