Ero CopperERO -4.72%91 Operating Margin % is 34.74% as of Mar. 2026, which is 16% above its 10-year median of 29.92. GuruFocus rates ERO with a GF Score™ of 91/100 and a GF Value™ of $36.24 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 841 Metals & Mining companies, Ero Copper ranks better than 81.93% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ero Copper's Operating Income for the
three
months ended in Mar. 2026 was $91.4 Mil. Ero Copper's Revenue for the
three
months ended in Mar. 2026 was $263.2 Mil. Therefore, Ero Copper's Operating Margin % for the quarter that ended in Mar. 2026 was 34.74%.
Warning Sign:
Ero Copper Corp operating margin has been in a 5-year decline. The average rate of decline per year is -12.1%.
The historical rank and industry rank for Ero Copper's Operating Margin % or its related term are showing as below:
ERO'
s Operating Margin % Range Over the Past 10 Years
Min: -4.17 Med: 29.92 Max: 55.33
Current: 34.4
ERO's Operating Margin % is ranked better than 81.93% of 841
companies
in the Metals & Mining industry
Industry Median: 5.72
vs ERO: 34.40
Ero Copper's 5-Year Average Operating Margin % Growth Rate was -12.10% per year.
Ero Copper's Operating Income for the
three
months ended in Mar. 2026 was $91.4 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $317.8 Mil.
Ero Copper (NYSE:ERO) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ero Copper Operating Margin % Related Terms
Ero Copper Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ero Copper's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Copper subindustry, Ero Copper's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ero Copper Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Ero Copper's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ero Copper's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ero Copper's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ero Copper (ERO) has a Operating Margin % of 34.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ero Copper and its competitors. This is 16% above median its historical median of 29.92. According to the industry distribution chart, Ero Copper ranks #152 out of 841 companies in the Metals & Mining industry, placing it in the top 18.1%.
Is Ero Copper's Operating Margin % too high?
Ero Copper's current Operating Margin % of 34.74% is 16% above median its 10-year median of 29.92. The Metals & Mining industry median Operating Margin % is 5.72. Ero Copper's value of 34.74% is 507.3% above this industry median. Based on the distribution chart, Ero Copper ranks #152 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Ero Copper has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ero Copper's Operating Margin % compare to SCCO and FCX?
According to the Metals & Mining industry distribution chart, Ero Copper ranks #152 out of 841 companies for Operating Margin %. This places Ero Copper in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. Ero Copper's value of 34.74% is 507.3% above this benchmark. While the company's 10-year median is 29.92 vs. the industry median of 5.72, Ero Copper has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ero Copper's current Operating Margin % of 34.74% is 507.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ero Copper and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ero Copper's current Operating Margin % is 34.74%, which is 16% above median its own 10-year median of 29.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ero Copper stock overvalued right now?
Based on GuruFocus' analysis, Ero Copper (ERO) is currently considered Modestly Undervalued. The stock's GF Value™ is $36.24, compared to a current price of $26.44 — trading 27% below its estimated fair value. The current Operating Margin % is 34.74%, which is 16% above median its 10-year median of 29.92 and 507.3% above the Metals & Mining industry median of 5.72. Ero Copper's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ero Copper (ERO), the current Operating Margin % is 34.74% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ero Copper (ERO) Overvalued in 2026?
Based on GuruFocus' analysis, Ero Copper stock appears to be undervalued.
The current stock price of $26.44 is trading 27% below its estimated GF Value™ of $36.24.
GuruFocus considers Ero Copper to be Modestly Undervalued.
Key valuation signals for ERO:
Operating Margin %: 34.74% (16% above median its 10-year median of 29.92)
GF Value™: $36.24 vs. price of $26.44 (27% below fair value)
Industry Position: 507.3% above the Metals & Mining median (#152 of 841)
No single metric tells the full story. See the ERO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ero Copper Corp is a high-margin, high-growth copper producer with operations in Brazil. Its primary asset is its 99.6% ownership interest in Mineracao Caraiba S.A., held indirectly through its wholly-owned subsidiary. The company also owns a 97.6% ownership interest in NX Gold S.A. indirectly through its wholly-owned subsidiary. Its reporting segments include its three operating mines in Brazil, the Caraiba Operations, the Tucuma Operation, and the Xavantina Operations, and its corporate head office in Canada.
91GF Score
Get the complete analysis for ERO
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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