TSXV:ERC

Stock Analysis Report

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Executive Summary

Eros Resources Corp. engages in the identification, acquisition, exploration, and development of mineral, and oil and gas resource properties in North America.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Eros Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ERC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.1%

ERC

2.7%

CA Metals and Mining

2.4%

CA Market


1 Year Return

42.9%

ERC

31.4%

CA Metals and Mining

-12.4%

CA Market

Return vs Industry: ERC exceeded the Canadian Metals and Mining industry which returned 31.4% over the past year.

Return vs Market: ERC exceeded the Canadian Market which returned -12.4% over the past year.


Shareholder returns

ERCIndustryMarket
7 Day11.1%2.7%2.4%
30 Day11.1%10.7%-0.9%
90 Day11.1%47.3%17.3%
1 Year42.9%42.9%32.4%31.4%-9.4%-12.4%
3 Year-41.2%-41.2%32.5%30.3%4.2%-5.7%
5 Year-39.4%-39.4%85.4%80.4%22.1%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eros Resources 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: ERC (CA$0.1) is trading below our estimate of fair value (CA$1.74)

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


Price To Earnings Ratio

PE vs Industry: ERC is good value based on its PE Ratio (2.3x) compared to the Metals and Mining industry average (24.4x).

PE vs Market: ERC is good value based on its PE Ratio (2.3x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ERC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ERC is good value based on its PB Ratio (0.7x) compared to the CA Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Eros Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Eros Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Eros Resources performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ERC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ERC has become profitable over the past 5 years, growing earnings by 4.7% per year.

Accelerating Growth: ERC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ERC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (18.3%).


Return on Equity

High ROE: ERC's Return on Equity (31.4%) is considered high.


Next Steps

Financial Health

How is Eros Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ERC's short term assets (CA$1.3M) exceed its short term liabilities (CA$462.3K).

Long Term Liabilities: ERC's short term assets (CA$1.3M) do not cover its long term liabilities (CA$2.8M).


Debt to Equity History and Analysis

Debt Level: ERC is debt free.

Reducing Debt: ERC has not had any debt for past 5 years.

Debt Coverage: ERC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ERC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Eros Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ERC'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 ERC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERC'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 ERC'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?

6.3yrs

Average board tenure


CEO

Ron Netolitzky (78yo)

2.5yrs

Tenure

CA$12,000

Compensation

Mr. Ronald Kort Netolitzky, also known as Ron, M.Sc. (Geology), P.Geo., has been President and Chief Executive Officer at Eros Resources Corp. since January 16, 2018 and also its Director. Mr. Netolitzky h ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD173.28K).

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


Board Members

NamePositionTenureCompensationOwnership
Ronald Netolitzky
President2.5yrsCA$12.00k10.78% CA$522.5k
Thomas MacNeill
Independent Chairman of the Board2.5yrsCA$12.00k0.083% CA$4.0k
Ross McElroy
Independent Director6.67yrsCA$12.00kno data

6.3yrs

Average Tenure

57yo

Average Age

Experienced Board: ERC's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ERC 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

Eros Resources Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eros Resources Corp.
  • Ticker: ERC
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$4.845m
  • Shares outstanding: 48.45m
  • Website: https://www.erosresourcescorp.com

Location

  • Eros Resources Corp.
  • 789 West Pender Street
  • Suite 420
  • Vancouver
  • British Columbia
  • V6C 1H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERCTSXV (TSX Venture Exchange)YesCommon SharesCACADJun 2007
BPUZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2007
6BPDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2007

Biography

Eros Resources Corp. engages in the identification, acquisition, exploration, and development of mineral, and oil and gas resource properties in North America. The company explores for gold, silver, and uranium deposits. Its principal property is the Bell Mountain project, which consists of 174 unpatented lode claims covering a land package of 1,463 hectares located to the southeast of Reno, Nevada. The company was formerly known as Boss Power Corp. and changed its name to Eros Resources Corp. in July 2015. Eros Resources Corp. is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 00:07
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
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.