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ERO

Ero CopperTSX:ERO Stock Report

Market Cap

CA$1.9b

7D

-7.4%

1Y

-4.9%

Updated

30 Nov, 2021

Data

Company Financials +
ERO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance6/6
Financial Health5/6
Dividends0/6

ERO Stock Overview

Ero Copper Corp., a mining company, focuses on the production, exploration, and development of mining projects in Brazil.

Price History & Performance

Summary of all time highs, changes and price drops for Ero Copper
Historical stock prices
Current Share PriceCA$21.19
52 Week HighCA$29.76
52 Week LowCA$17.24
Beta2.35
1 Month Change-8.23%
3 Month Change-11.34%
1 Year Change-4.89%
3 Year Change98.22%
5 Year Changen/a
Change since IPO346.11%

Recent News & Updates

Sep 27
Should You Be Adding Ero Copper (TSE:ERO) To Your Watchlist Today?

Should You Be Adding Ero Copper (TSE:ERO) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 09
Does Ero Copper (TSE:ERO) Have A Healthy Balance Sheet?

Does Ero Copper (TSE:ERO) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

EROCA Metals and MiningCA Market
7D-7.4%-2.4%-1.3%
1Y-4.9%5.8%23.7%

Return vs Industry: ERO underperformed the Canadian Metals and Mining industry which returned 5.8% over the past year.

Return vs Market: ERO underperformed the Canadian Market which returned 23.7% over the past year.

Price Volatility

Is ERO's price volatile compared to industry and market?
ERO volatility
ERO Average Weekly Movement6.4%
Metals and Mining Industry Average Movement10.7%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.5%

Stable Share Price: ERO is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ERO's weekly volatility (6%) has been stable over the past year.

About the Company

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

Ero Copper Corp., a mining company, focuses on the production, exploration, and development of mining projects in Brazil. The company also explores for copper, gold, and silver deposits. Its principal property is the Vale do Curaçá property covering an area of approximately 153,741 hectares located in the northeastern Bahia State, Brazil.

Ero Copper Fundamentals Summary

How do Ero Copper's earnings and revenue compare to its market cap?
ERO fundamental statistics
Market CapUS$1.47b
Earnings (TTM)US$207.04m
Revenue (TTM)US$446.29m

7.2x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERO income statement (TTM)
RevenueUS$446.29m
Cost of RevenueUS$153.45m
Gross ProfitUS$292.84m
ExpensesUS$85.81m
EarningsUS$207.04m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.31
Gross Margin65.62%
Net Profit Margin46.39%
Debt/Equity Ratio15.7%

How did ERO perform over the long term?

See historical performance and comparison

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$21.19) is trading below our estimate of fair value (CA$532.37)

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


Price To Earnings Ratio

PE vs Industry: ERO is good value based on its PE Ratio (7.2x) compared to the Canadian Metals and Mining industry average (9.7x).

PE vs Market: ERO is good value based on its PE Ratio (7.2x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ERO is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ERO is overvalued based on its PB Ratio (4.3x) compared to the CA Metals and Mining industry average (2.4x).


Future Growth

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

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERO's forecast earnings growth (25.6% per year) is above the savings rate (1.6%).

Earnings vs Market: ERO's earnings (25.6% per year) are forecast to grow faster than the Canadian market (10.5% per year).

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

Revenue vs Market: ERO's revenue (16.5% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: ERO's revenue (16.5% 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


Past Performance

How has Ero Copper performed over the past 5 years?

67.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERO has high quality earnings.

Growing Profit Margin: ERO's current net profit margins (46.4%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: ERO's earnings have grown significantly by 67.2% per year over the past 5 years.

Accelerating Growth: ERO's earnings growth over the past year (567.7%) exceeds its 5-year average (67.2% per year).

Earnings vs Industry: ERO earnings growth over the past year (567.7%) exceeded the Metals and Mining industry 126.9%.


Return on Equity

High ROE: ERO's Return on Equity (59.4%) is considered outstanding.


Financial Health

How is Ero Copper's financial position?


Financial Position Analysis

Short Term Liabilities: ERO's short term assets ($187.0M) exceed its short term liabilities ($105.7M).

Long Term Liabilities: ERO's short term assets ($187.0M) exceed its long term liabilities ($167.6M).


Debt to Equity History and Analysis

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

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 (607.7%).

Interest Coverage: ERO's interest payments on its debt are well covered by EBIT (45.7x coverage).


Balance Sheet


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?

3.9yrs

Average management tenure


CEO

David Strang (53 yo)

5.5yrs

Tenure

US$2,172,443

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 ($USD2.17M) is about average for companies of similar size in the Canadian market ($USD1.99M).

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 (3.9 years average tenure).


Board Members

Experienced Board: ERO's board of directors are considered experienced (5.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


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
  • Market Cap: CA$1.885b
  • Shares outstanding: 89.70m
  • 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 Analysis2021/11/30 00:31
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.