TSX:ERO

Stock Analysis Report

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Executive Summary

Ero Copper Corp., a base metals mining company, focuses on the production and sale of copper in Brazil. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

How has Ero Copper's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ERO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.0%

ERO

-1.5%

CA Metals and Mining

-1.6%

CA Market


1 Year Return

16.3%

ERO

48.7%

CA Metals and Mining

-6.3%

CA Market

Return vs Industry: ERO underperformed the Canadian Metals and Mining industry which returned 48.8% over the past year.

Return vs Market: ERO exceeded the Canadian Market which returned -5.5% over the past year.


Shareholder returns

EROIndustryMarket
7 Day-8.0%-1.5%-1.6%
30 Day3.5%-0.5%-0.8%
90 Day19.9%-4.7%-0.7%
1 Year16.3%16.3%49.9%48.7%-2.9%-6.3%
3 Year278.1%278.1%52.9%49.8%3.4%-6.6%
5 Yearn/a143.7%136.4%31.6%11.4%

Price Volatility Vs. Market

How volatile is Ero Copper's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ero Copper undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERO (CA$19.32) is trading below our estimate of fair value (CA$62.41)

Significantly Below Fair Value: ERO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ERO is poor value based on its PE Ratio (77.6x) compared to the CA Metals and Mining industry average (22.1x).

PE vs Market: ERO is poor value based on its PE Ratio (77.6x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: ERO is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ERO is overvalued based on its PB Ratio (13.3x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

How is Ero Copper forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERO's forecast earnings growth (34.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ERO's earnings (34.7% per year) are forecast to grow faster than the Canadian market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ERO's revenue (4.1% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: ERO's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ERO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ero Copper performed over the past 5 years?

56.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERO has high quality earnings.

Growing Profit Margin: ERO's current net profit margins (5.9%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: ERO's earnings have grown significantly by 56.6% per year over the past 5 years.

Accelerating Growth: ERO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ERO had negative earnings growth (-65.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (48.1%).


Return on Equity

High ROE: ERO's Return on Equity (17.2%) is considered low.


Next Steps

Financial Health

How is Ero Copper's financial position?


Financial Position Analysis

Short Term Liabilities: ERO's short term assets ($91.0M) do not cover its short term liabilities ($116.7M).

Long Term Liabilities: ERO's short term assets ($91.0M) do not cover its long term liabilities ($207.9M).


Debt to Equity History and Analysis

Debt Level: ERO's debt to equity ratio (191.5%) is considered high.

Reducing Debt: Insufficient data to determine if ERO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ERO's debt is well covered by operating cash flow (79.2%).

Interest Coverage: ERO's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Ero Copper current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ERO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ERO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ERO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

David Strang (52 yo)

4.42yrs

Tenure

US$2,386,746

Compensation

Mr. David Maxwell Strang serves as a Managing Partner of Ero Resource Partners. Mr. Strang serves as the Chief Executive Officer and President of Ero Copper Corp. He has approximately 20 years of corporate ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.39M) is about average for companies of similar size in the Canadian market ($USD2.05M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Dunn
Executive Chairman of the Board4.42yrsUS$2.39m3.22%
$ 53.7m
David Strang
CEO, President & Director4.42yrsUS$2.39m6.09%
$ 101.5m
Wayne Drier
Chief Financial Officer3.58yrsUS$1.14m0.27%
$ 4.5m
Makko DeFilippo
Vice President of Corporate Development3.67yrsUS$792.69k0.012%
$ 199.5k
Michel Richard
Chief Geological Officer3.75yrsUS$1.29m2.37%
$ 39.6m
Anthea Bath
Vice President of Technical Services2.25yrsno datano data
Deepk Hundal
VP, General Counsel & Corporate Secretary3.25yrsno data0.012%
$ 203.3k
Pablo Mejia-Herrera
Vice President of Exploration2.33yrsno datano data
Eduardo de Come
Co-CEO & CFO of MCSAno datano datano data
Manoel de Brito
Co-CEO & COO of MCSAno datano datano data

3.6yrs

Average Tenure

54yo

Average Age

Experienced Management: ERO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Dunn
Executive Chairman of the Board4.42yrsUS$2.39m3.22%
$ 53.7m
David Strang
CEO, President & Director4.42yrsUS$2.39m6.09%
$ 101.5m
Robert Getz
Independent Director2.33yrsUS$173.00k0.20%
$ 3.3m
Steven Busby
Independent Director4.25yrsUS$170.50k0.42%
$ 7.1m
John Wright
Independent Lead Directorno dataUS$180.50k1.01%
$ 16.8m
Chantal Gosselin
Independent Director1.17yrsUS$154.45k0.00072%
$ 12.0k
Sally Eyre
Independent Director1.17yrsUS$154.45kno data
Lyle Braaten
Independent Director4.25yrsUS$170.50k0.37%
$ 6.1m
Matthew Wubs
Independent Director4.25yrsUS$175.50k2.47%
$ 41.3m

4.3yrs

Average Tenure

56yo

Average Age

Experienced Board: ERO's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ero Copper Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ero Copper Corp.
  • Ticker: ERO
  • Exchange: TSX
  • Founded: 2016
  • Industry: Copper
  • Sector: Materials
  • Market Cap: CA$1.668b
  • Shares outstanding: 86.32m
  • Website: https://www.erocopper.com

Number of Employees


Location

  • Ero Copper Corp.
  • 625 Howe Street
  • Suite 1050
  • Vancouver
  • British Columbia
  • V6C 2T6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EROTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2017
ERRP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2017
E0BDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2017

Biography

Ero Copper Corp., a base metals mining company, focuses on the production and sale of copper in Brazil. The company also explores for gold and silver deposits. Its principal property is the Vale do Curaçá ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 00:07
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.