Ero Copper Current Valuation vs. EBITDA

ERO Stock  CAD 19.04  0.32  1.71%   
Considering Ero Copper's profitability and operating efficiency indicators, Ero Copper's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Ero Copper's ability to earn profits and add value for shareholders. At this time, Ero Copper's Price To Sales Ratio is very stable compared to the past year. As of the 22nd of December 2024, EV To Sales is likely to grow to 4.50, while Days Sales Outstanding is likely to drop 4.63. At this time, Ero Copper's Operating Income is very stable compared to the past year. As of the 22nd of December 2024, Total Other Income Expense Net is likely to grow to about 20.8 M, while Accumulated Other Comprehensive Income is likely to drop (17.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.340.3669
Significantly Down
Slightly volatile
Pretax Profit Margin0.180.2628
Way Down
Slightly volatile
For Ero Copper profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ero Copper to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ero Copper Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ero Copper's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ero Copper Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Ero Copper's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ero Copper is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ero Copper's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ero Copper Corp EBITDA vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ero Copper's current stock value. Our valuation model uses many indicators to compare Ero Copper value to that of its competitors to determine the firm's financial worth.
Ero Copper Corp is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in ebitda category among its peers totaling about  0.08  of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Ero Copper Corp is roughly  13.16 . At this time, Ero Copper's EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ero Copper by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ero Copper's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Ero Current Valuation vs. Competition

Ero Copper Corp is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 2.79 Billion. Ero Copper totals roughly 2.74 Billion in current valuation claiming about 98% of all equities under Materials industry.

Ero EBITDA vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Ero Copper

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
2.74 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Ero Copper

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
208.15 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Ero EBITDA Comparison

Ero Copper is currently under evaluation in ebitda category among its peers.

Ero Copper Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ero Copper, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ero Copper will eventually generate negative long term returns. The profitability progress is the general direction of Ero Copper's change in net profit over the period of time. It can combine multiple indicators of Ero Copper, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-16.6 M-17.4 M
Interest Income12.5 M12.2 M
Operating Income92.5 M104.6 M
Net Income From Continuing Ops94.3 M76.3 M
Income Before Tax112.4 M84 M
Total Other Income Expense Net19.9 M20.8 M
Net Income Applicable To Common Shares117.1 M72.5 M
Net Income94.3 M76.4 M
Income Tax Expense18 M18.9 M
Net Interest Income-10.7 M-11.2 M
Change To Netincome-1.8 M-1.7 M
Net Income Per Share 0.98  0.62 
Income Quality 1.73  1.82 
Net Income Per E B T 0.83  0.78 

Ero Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ero Copper. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ero Copper position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ero Copper's important profitability drivers and their relationship over time.

Use Ero Copper in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ero Copper position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ero Copper will appreciate offsetting losses from the drop in the long position's value.

Ero Copper Pair Trading

Ero Copper Corp Pair Trading Analysis

The ability to find closely correlated positions to Ero Copper could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ero Copper when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ero Copper - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ero Copper Corp to buy it.
The correlation of Ero Copper is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ero Copper moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ero Copper Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ero Copper can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ero Copper position

In addition to having Ero Copper in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Consumer Goods Thematic Idea Now

Consumer Goods
Consumer Goods Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Consumer Goods theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Goods Theme or any other thematic opportunities.
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When determining whether Ero Copper Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ero Copper's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ero Copper Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ero Copper Corp Stock:
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You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Ero Copper's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ero Copper Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ero Copper's income statement, its balance sheet, and the statement of cash flows.
Potential Ero Copper investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ero Copper investors may work on each financial statement separately, they are all related. The changes in Ero Copper's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ero Copper's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.