Investors in Ero Copper Corp (ERO, Financial) have witnessed a notable uptick in the company's stock price, with a recent movement to $18.19. Over the past week, the stock has experienced a slight decline of 0.12%. However, the medium-term trend tells a more positive story. Over the past three months, ERO's stock has surged by an impressive 24.16%, signaling strong investor confidence and market performance.
Assessing ERO's Valuation
When it comes to valuation, the GF Value is a critical metric. Currently, ERO's GF Value stands at $16.91, which is slightly below its current trading price, indicating that the stock is fairly valued. This is a shift from three months ago when the stock was considered modestly undervalued with a past GF Value of $18.21. This change reflects the stock's recent price increase and suggests that the current price is in line with the company's intrinsic value as calculated by GuruFocus.com.
Introduction to Ero Copper Corp
Ero Copper Corp operates within the metals and mining industry, focusing primarily on copper production, with gold and silver as by-products. The company's business is geographically segmented, with its primary operations in Brazil, including the Caraiba Operations and the Xavantina Operations, as well as the Tucuma Project. The majority of ERO's revenue is generated from the Caraiba Operations, which encompass the Pilar and Vermelhos underground mines and the Surubim open pit mine.
Ero Copper's Profitability Insights
ERO's financial health can be partly assessed by its Profitability Rank, which currently stands at 7/10. This rank is a testament to the company's ability to maintain profitability and suggests a positive outlook for future business stability. ERO's Operating Margin is an impressive 21.64%, outperforming 84.35% of its peers in the industry. Additionally, the company's ROE is at 14.22%, ROA at 6.99%, and ROIC at 7.28%, all of which are better than the majority of their competitors, indicating efficient management and a strong return on investments. Over the past decade, ERO has been profitable for six years, which is commendable within its sector.
Growth Trajectory of Ero Copper
ERO's Growth Rank is at the maximum of 10/10, reflecting the company's exceptional growth in terms of revenue and profitability. The company's 3-Year Revenue Growth Rate per Share stands at 10.30%, and its 5-Year Revenue Growth Rate per Share is at 12.50%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 18.57%, indicating strong future growth prospects. However, the 3-Year EPS without NRI Growth Rate shows a decline of -18.90%, which is a point of concern, but the 5-Year EPS without NRI Growth Rate rebounds with a healthy 20.70% increase.
Influential Investors in Ero Copper
ERO's stock performance is also influenced by its top holders. Notable investors include Jeremy Grantham (Trades, Portfolio), holding 270,000 shares (0.26%), Ray Dalio (Trades, Portfolio) with 268,663 shares (0.26%), and Arnold Van Den Berg (Trades, Portfolio) with 49,099 shares (0.05%). The involvement of these seasoned investors can provide a level of confidence in the stock and potentially impact its market performance.
Competitive Landscape
ERO's market capitalization of $1.87 billion places it within a competitive landscape that includes Hudbay Minerals Inc (TSX:HBM, Financial) with a market cap of $2.24 billion, Taseko Mines Ltd (TSX:TKO, Financial) at $507.467 million, and Capstone Copper Corp (TSX:CS, Financial) at $4.19 billion. This comparison highlights ERO's position within the industry and the scale of its operations relative to its peers.
Conclusion: ERO's Market Position and Future Outlook
In summary, ERO's recent stock performance and valuation suggest a company that is currently fairly valued and has experienced significant growth over the past quarter. Its position in the metals and mining industry is solid, with a strong profitability rank and promising growth prospects. The influence of top holders adds an additional layer of interest for potential investors. Finally, when compared to its competitors, ERO holds its own, with a market cap that reflects its standing in the industry. For value investors, ERO presents an interesting opportunity to consider within the metals and mining sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
