Ero Copper Corp. Common Shares (ERO)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close, Ero Copper trades at $36.65, giving a $2.9B market cap. The FairStock P/E is 12.42 and P/B is 3.15. In fiscal Q2 2026, the company earned $89.5M on $284.3M of revenue, a 31.49% net margin. That is a good quarter, but copper mining is a commodity business, and I do not see a wide moat; it is a price taker. I see high ROE of 30.81% and ROCE of 11.97%, moderate D/E of 0.47, and trailing free cash flow of $171.6M, a 6.0% FCF yield. The Piotroski F-Score is 7/9, Altman Z is 2.79, and EV/EBITDA is 5.92. PEG is 0.46, which on the supplied numbers suggests growth is not expensive. But Graham Number is $27.78; at $36.65 the margin of safety is -31.93%, meaning the price is well above a conservative asset-based value. P/B of 3.15 also says little asset discount. The Lynch category is none because only 0 years of filed results are available and the rule needs 3; that is a real limitation for a miner with a short public history. No dividend yield is provided, beta is 1.67, and the 52-week range is $19.09-$40.83. I like the cash generation and profitability, but I cannot call this a classic Graham bargain. A Buffett-style question would be whether Caraíba's economics are durable through the copper cycle. If copper stays firm, cash flow can compound; if it weakens, earnings and FCF could fall sharply. The balance sheet is not alarming, but Altman Z 2.79 is not fortress-like. I would watch copper prices, costs, and whether FCF remains positive.

In plain English: Ero Copper mines copper in Brazil, with gold and silver as by-products. In its latest reported quarter, fiscal Q2 2026, it earned a solid profit, and the business generates cash. At the 2026-10-13 close of $36.65, the shares look more expensive than a conservative asset-value estimate, but not wildly priced against current profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer