Ero Copper Beneish M Score

ERO -  USA Stock  

USD 12.10  0.16  1.31%

This module uses fundamental data of Ero Copper to approximate the value of its Beneish M Score. Ero Copper M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Ero Copper Piotroski F Score and Ero Copper Altman Z Score analysis.
  
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Ero Copper Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 90.96 Million. Debt Current is expected to rise to about 11.1 M this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (124.2 M).
At this time, it appears that Ero Copper Corp is an unlikely manipulator. The earnings manipulation may begin if Ero Copper's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Ero Copper executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Ero Copper's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.93Focus
Asset QualityN/AFocus
Expense Coverage1.09Focus
Gross Margin Strengs1.01Focus
Accruals Factor1.09Focus
Depreciation Resistance0.95Focus
Net Sales Growth0.96Focus
Financial Leverage Condition1.15Focus

Ero Copper Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Ero Copper's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues469.9 M489.9 M
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative Expense40.6 M38.8 M
Sufficiently Up
Decreasing
Stable
Net Cash Flow from Operations318.3 M364.6 M
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion50.5 M47.3 M
Notably Up
Increasing
Very volatile
Total Assets681.4 M689.8 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net482.4 M477.5 M
Fairly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables27.5 M30.7 M
Moderately Down
Increasing
Slightly volatile
Total Liabilities317.2 M294.3 M
Significantly Up
Increasing
Slightly volatile
Current Assets189.3 M208.7 M
Moderately Down
Increasing
Slightly volatile
Assets Non Current492.1 M481.1 M
Fairly Up
Increasing
Slightly volatile
Current Liabilities121.5 M122.7 M
Slightly Down
Increasing
Slightly volatile
Liabilities Non Current167 M171.6 M
Fairly Down
Decreasing
Slightly volatile
Total Debt91 M66.4 M
Significantly Up
Decreasing
Slightly volatile
Debt Current11.1 M9.1 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current79.9 M57.3 M
Significantly Up
Decreasing
Slightly volatile
Operating Income237.1 M269.3 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.660.651
Fairly Up
Increasing
Slightly volatile

Ero Copper Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Ero Copper's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ero Copper in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Ero Copper's degree of accounting gimmicks and manipulations.

About Ero Copper Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

52.12 Million

Share
Ero Copper Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 52.12 Million

About Ero Copper Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ero Copper Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ero Copper using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ero Copper Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Ero Copper Corp., a mining company, focuses on the production, exploration, and development of mining projects in Brazil. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada. Ero Copper operates under Copper classification in the United States and is traded on New York Stock Exchange. It employs 2457 people.

Ero Copper Investors Sentiment

The influence of Ero Copper's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Ero Copper. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Ero Copper in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Ero Copper's short interest history, or implied volatility extrapolated from Ero Copper options trading.

Current Sentiment - ERO

Ero Copper Corp Investor Sentiment

Greater number of Macroaxis users are currently bullish on Ero Copper Corp. What is your opinion about investing in Ero Copper Corp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Ero Copper

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 Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

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 equities. 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.
Pair CorrelationCorrelation Matching
Continue to Ero Copper Piotroski F Score and Ero Copper Altman Z Score analysis. Note that the Ero Copper Corp information on this page should be used as a complementary analysis to other Ero Copper's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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Is Ero Copper's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ero Copper. If investors know Ero Copper will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ero Copper listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ero Copper Corp is measured differently than its book value, which is the value of Ero Copper that is recorded on the company's balance sheet. Investors also form their own opinion of Ero Copper's value that differs from its market value or its book value, called intrinsic value, which is Ero Copper's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ero Copper's market value can be influenced by many factors that don't directly affect Ero Copper's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ero Copper's value and its price as these two are different measures arrived at by different means. Investors typically determine Ero Copper value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ero Copper's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.