In a market where value is scarce, NYSE:ERF offers a refreshing opportunity with its solid fundamentals.

Uncover the hidden value in ENERPLUS CORP (NYSE:ERF) as our stock screening tool recommends it as an undervalued choice. NYSE:ERF maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Examination for NYSE:ERF

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ERF scores a 8 out of 10:

• A Price/Earnings ratio of 9.77 indicates a reasonable valuation of ERF.
• Compared to an average S&P500 Price/Earnings ratio of 24.84, ERF is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 6.78, the valuation of ERF can be described as very cheap.
• Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 83.64% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, ERF is valued rather cheaply.
• 69.16% of the companies in the same industry are more expensive than ERF, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERF indicates a somewhat cheap valuation: ERF is cheaper than 62.62% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ERF has a very decent profitability rating, which may justify a higher PE ratio.
• ERF's earnings are expected to grow with 31.12% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ERF has achieved a 7:

• The Return On Assets of ERF (22.05%) is better than 88.32% of its industry peers.
• ERF's Return On Equity of 37.16% is amongst the best of the industry. ERF outperforms 85.51% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 27.18%, ERF belongs to the top of the industry, outperforming 92.99% of the companies in the same industry.
• The last Return On Invested Capital (27.18%) for ERF is well below the 3 year average (44.47%), which needs to be investigated, but indicates that ERF had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 27.42%, ERF is in the better half of the industry, outperforming 67.29% of the companies in the same industry.
• The Operating Margin of ERF (33.30%) is better than 61.68% of its industry peers.
• ERF has a Gross Margin of 67.81%. This is in the better half of the industry: ERF outperforms 70.09% of its industry peers.

Health Assessment of NYSE:ERF

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ERF has earned a 7 out of 10:

• ERF has an Altman-Z score of 3.79. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.79, ERF belongs to the top of the industry, outperforming 80.84% of the companies in the same industry.
• The Debt to FCF ratio of ERF is 0.48, which is an excellent value as it means it would take ERF, only 0.48 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.48, ERF belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
• A Debt/Equity ratio of 0.09 indicates that ERF is not too dependend on debt financing.
• The Debt to Equity ratio of ERF (0.09) is better than 78.97% of its industry peers.

Assessing Growth for NYSE:ERF

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ERF scores a 4 out of 10:

• The Earnings Per Share is expected to grow by 31.12% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of ERF for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.