Ero Copper Return On Equity vs. Return On Asset
| ERO Stock | CAD 19.04 0.32 1.71% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.11539198 | Current Value 0.15 | Quarterly Volatility 0.24574562 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.34 | 0.3669 |
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| Pretax Profit Margin | 0.18 | 0.2628 |
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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.
Ero |
Ero Copper Corp Return On Asset vs. Return On Equity 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 one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about 1.49 of Return On Asset per Return On Equity. At this time, Ero Copper's Return On Equity 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 Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Ero Copper |
| = | 0.0269 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Ero Copper |
| = | 0.0401 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Ero Return On Asset Comparison
Ero Copper is currently under evaluation in return on asset 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -16.6 M | -17.4 M | |
| Interest Income | 12.5 M | 12.2 M | |
| Operating Income | 92.5 M | 104.6 M | |
| Net Income From Continuing Ops | 94.3 M | 76.3 M | |
| Income Before Tax | 112.4 M | 84 M | |
| Total Other Income Expense Net | 19.9 M | 20.8 M | |
| Net Income Applicable To Common Shares | 117.1 M | 72.5 M | |
| Net Income | 94.3 M | 76.4 M | |
| Income Tax Expense | 18 M | 18.9 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.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?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 44 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 Aircraft Theme or any other thematic opportunities.
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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.