Company Overview
Ero Copper Corp. engages in the exploration, development, and production of mining projects, with its primary operations focused on the production and sale of copper concentrates located in Bahia State, Brazil, as well as the generation of gold and silver produced and sold as by-products. The company operates within the Basic Materials sector, specifically the Copper industry, positioning itself as a key player in the global supply chain for essential industrial metals required for infrastructure and renewable energy applications. Ero Copper Corp. carries a market capitalization of $2.46B and reported annual revenue of $785.84M, while the specific employee count is not publicly disclosed in current filings. These valuation and revenue figures indicate that the company has established a significant presence in the copper market, suggesting a scale capable of influencing regional production dynamics and maintaining substantial operational capacity across its Brazilian assets.
Financial Health
The company reported a revenue of $785.84M for the trailing twelve months, generating a net income of $263.72M and an EBITDA of $386.57M, which highlights a substantial gap between top-line revenue and bottom-line profit that reveals a robust cost structure capable of absorbing significant operating expenses while maintaining profitability. However, the free cash flow stands at $-8,443,750, indicating that the company is currently burning cash, which suggests limited immediate financial flexibility for internal expansion without external capital raising or debt servicing. The gross margin is 43.9%, the operating margin is 43.6%, and the profit margin is 33.6%; these high margin levels indicate that the company effectively controls its direct production costs and maintains pricing power that allows a large portion of revenue to convert into operating and final profits. In terms of liquidity and leverage, total cash holdings of $105.44M are significantly lower than total debt of $632.35M, resulting in a debt-to-equity ratio of 67.42, which characterizes the balance sheet as leveraged rather than conservative. This leverage is further contextualized by a current ratio of 1.06, which indicates that the company's short-term liquid assets are only slightly higher than its short-term liabilities, pointing to a tight liquidity position that requires careful management of working capital. Finally, the Return on Equity is 34.9% and the Return on Assets is 9.9%, metrics that reveal management is highly effective at utilizing shareholder equity to generate returns, even though the asset base is large relative to the equity base due to the significant debt load.
Valuation Assessment
The trailing P/E ratio is 9.32, while the forward P/E is 5.25; the substantial difference between these two figures implies that the market expects earnings to grow significantly in the coming periods, as the forward multiple discounts the current valuation relative to anticipated future profitability. The price-to-book ratio is 2.63, indicating that the market values the company at a premium of 163% over its book value, which suggests investors are pricing in future growth potential or asset quality beyond the current net asset book value. Alternative valuation metrics show a price-to-sales ratio of 3.13 and an EV/EBITDA of 7.73, which suggest that the company is valued at a moderate multiple relative to its sales and earnings before interest, taxes, depreciation, and amortization, providing a diversified view of valuation that is not solely dependent on net income. The stock has traded between a 52-week high of $39.80 and a 52-week low of $9.30, and without the current share price explicitly provided in the facts, the relative position cannot be calculated as a percentage, but the wide trading range demonstrates significant price volatility over the past year. The beta value is 1.51, which means the stock price is expected to be 51% more volatile than the broader market, reflecting the high sensitivity of copper mining equities to commodity price fluctuations and macroeconomic shifts.
Growth & Income
The revenue growth rate year-over-year is 161.3%, while the earnings growth rate is N/A; this disparity indicates that earnings are currently unavailable for comparison or have not been calculated for the period, preventing a direct assessment of whether earnings are growing faster or slower than revenue, but the massive revenue expansion suggests a rapid scaling of operations. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the company reinvests all of its earnings into growth initiatives, exploration activities, or debt reduction rather than distributing cash to shareholders. Consequently, the overall growth and income profile is characterized by aggressive expansion and zero cash distribution to investors, relying entirely on capital appreciation and operational scaling to drive shareholder value.