$Ero Copper (ERO.US)$It is a Canadian company listed in 2021...
$Ero Copper(ERO.US$It is a Canadian company listed in 2021. Revenue has grown rapidly in the past 4 years, with an average growth rate of 44%, and operating profit has maintained 4 years of growth. The average growth rate in the past 3 years is 56%. Net profit has been greatly affected by other income items, mainly losses from sales of securities. Therefore, losses were only reversed in 2019. Affected by income tax refunds, net profit in 2019 was higher than in 2020.
In the first three quarters of 2022, revenue fell by 12.8%, operating profit fell 53%, and net profit fell 43% to $80 million.
Since the listing, the balance ratio has increased from 43% to 56%. Mainly, long-term loans have increased from 50 million to 400 million, which is 82% of net assets, and the leverage ratio is slightly higher.
Since 2019, net operating cash flow has greatly exceeded net investment, but in the first 3 quarters of 2022, investment has greatly exceeded net operating amount, and the cumulative shareholder surplus is very low.
Currently, the price-earnings ratio is 7, and the price-earnings ratio TTM has risen to 10. If the annual net profit is 110 million, the price-earnings ratio will rise further to 13. Since the sector is at a peak and decline stage, the current valuation is not very attractive.
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