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ERO

Ero Copper TSX:ERO Stock Report

Last Price

CA$13.85

Market Cap

CA$1.3b

7D

13.4%

1Y

-43.1%

Updated

13 Aug, 2022

Data

Company Financials +
ERO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ERO Stock Overview

Ero Copper Corp., a base metals mining company, engages in the exploration, development, and production of mining projects in Brazil.

Ero Copper Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ero Copper
Historical stock prices
Current Share PriceCA$13.85
52 Week HighCA$25.83
52 Week LowCA$10.54
Beta2.4
1 Month Change24.66%
3 Month Change1.17%
1 Year Change-43.05%
3 Year Change-32.47%
5 Year Changen/a
Change since IPO191.58%

Recent News & Updates

Aug 05
Ero Copper Corp. (TSE:ERO) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Ero Copper Corp. (TSE:ERO) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Ero Copper Corp. ( TSE:ERO ) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to...

Shareholder Returns

EROCA Metals and MiningCA Market
7D13.4%4.4%3.0%
1Y-43.1%-14.2%0.7%

Return vs Industry: ERO underperformed the Canadian Metals and Mining industry which returned -14.2% over the past year.

Return vs Market: ERO underperformed the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is ERO's price volatile compared to industry and market?
ERO volatility
ERO Average Weekly Movement9.7%
Metals and Mining Industry Average Movement11.7%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: ERO is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ERO's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20162,457David Stranghttps://www.erocopper.com

Ero Copper Corp., a base metals mining company, engages in the exploration, development, and production of mining projects in Brazil. It engages in the production and sale of copper concentrate from the MCSA Mining Complex located within the Curaçá Valley, northeastern Bahia state, as well as gold and silver byproducts. The company also holds a 100% interest in the Boa Esperança property, a copper development project located within southeastern Pará state; and NX Gold property located in Mato Grosso state.

Ero Copper Fundamentals Summary

How do Ero Copper's earnings and revenue compare to its market cap?
ERO fundamental statistics
Market CapUS$982.17m
Earnings (TTM)US$161.81m
Revenue (TTM)US$470.48m

6.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERO income statement (TTM)
RevenueUS$470.48m
Cost of RevenueUS$206.44m
Gross ProfitUS$264.04m
Other ExpensesUS$102.23m
EarningsUS$161.81m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.78
Gross Margin56.12%
Net Profit Margin34.39%
Debt/Equity Ratio83.7%

How did ERO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ERO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERO?

Other financial metrics that can be useful for relative valuation.

ERO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA3.7x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does ERO's PE Ratio compare to its peers?

ERO PE Ratio vs Peers
The above table shows the PE ratio for ERO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10x
CS Capstone Copper
9.9x29.4%CA$2.4b
CMMC Copper Mountain Mining
11.7x54.2%CA$369.9m
TKO Taseko Mines
11.9x41.0%CA$403.8m
LUN Lundin Mining
6.4x-2.1%CA$5.7b
ERO Ero Copper
6.1x34.2%CA$1.3b

Price-To-Earnings vs Peers: ERO is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (10x).


Price to Earnings Ratio vs Industry

How does ERO's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Earnings vs Industry: ERO is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Canadian Metals and Mining industry average (10.1x)


Price to Earnings Ratio vs Fair Ratio

What is ERO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ratio21.4x

Price-To-Earnings vs Fair Ratio: ERO is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (21.4x).


Share Price vs Fair Value

What is the Fair Price of ERO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ERO (CA$13.85) is trading below our estimate of fair value (CA$118.38)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Ero Copper forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


34.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERO's forecast earnings growth (34.2% per year) is above the savings rate (1.6%).

Earnings vs Market: ERO's earnings (34.2% per year) are forecast to grow faster than the Canadian market (8.2% per year).

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

Revenue vs Market: ERO's revenue (21.6% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: ERO's revenue (21.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERO's Return on Equity is forecast to be high in 3 years time (28%)


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Past Performance

How has Ero Copper performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


59.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERO has a high level of non-cash earnings.

Growing Profit Margin: ERO's current net profit margins (34.4%) are lower than last year (49.4%).


Past Earnings Growth Analysis

Earnings Trend: ERO's earnings have grown significantly by 59% 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 (-23.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (-16.2%).


Return on Equity

High ROE: ERO's Return on Equity (32.5%) is considered high.


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Financial Health

How is Ero Copper's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ERO's short term assets ($523.2M) exceed its short term liabilities ($105.5M).

Long Term Liabilities: ERO's short term assets ($523.2M) exceed its long term liabilities ($520.0M).


Debt to Equity History and Analysis

Debt Level: ERO has more cash than its total debt.

Reducing Debt: ERO's debt to equity ratio has reduced from 380.8% to 83.7% over the past 5 years.

Debt Coverage: ERO's debt is well covered by operating cash flow (67.6%).

Interest Coverage: ERO's interest payments on its debt are well covered by EBIT (30.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ERO has not reported any payouts.


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Management

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

4.2yrs

Average management tenure


CEO

David Strang (54 yo)

6.25yrs

Tenure

US$2,468,233

Compensation

Mr. David Maxwell Strang serves as the Chief Executive Officer and Director of Ero Copper Corp. since May 16, 2016 and served as its President since May 16, 2016 until January 4, 2021. He is Co-Managing Pa...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.47M) is above average for companies of similar size in the Canadian market ($USD1.68M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ERO's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: ERO's board of directors are considered experienced (6.1 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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ero Copper Corp.
  • Ticker: ERO
  • Exchange: TSX
  • Founded: 2016
  • Industry: Copper
  • Sector: Materials
  • Implied Market Cap: CA$1.257b
  • Shares outstanding: 90.74m
  • Website: https://www.erocopper.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.