NYSE:ERF, an undervalued stock with good fundamentals.

ENERPLUS CORP (NYSE:ERF) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:ERF showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Assessment of NYSE:ERF

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:ERF has earned a 8 for valuation:

• With a Price/Earnings ratio of 11.18, the valuation of ERF can be described as very reasonable.
• The average S&P500 Price/Earnings ratio is at 28.67. ERF is valued rather cheaply when compared to this.
• ERF is valuated cheaply with a Price/Forward Earnings ratio of 5.58.
• Based on the Price/Forward Earnings ratio, ERF is valued cheaply inside the industry as 90.61% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, ERF is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, ERF is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
• ERF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERF is cheaper than 62.44% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of ERF 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.

Profitability Insights: NYSE:ERF

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:

• ERF's Return On Assets of 22.05% is amongst the best of the industry. ERF outperforms 91.55% of its industry peers.
• The Return On Equity of ERF (37.16%) is better than 88.26% of its industry peers.
• ERF has a Return On Invested Capital of 27.18%. This is amongst the best in the industry. ERF outperforms 94.37% of its industry peers.
• The 3 year average ROIC (44.47%) for ERF is well above the current ROIC(27.18%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 27.42%, ERF is in the better half of the industry, outperforming 71.36% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 33.30%, ERF is in the better half of the industry, outperforming 63.85% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 67.81%, ERF is in the better half of the industry, outperforming 72.77% of the companies in the same industry.

How do we evaluate the Health for NYSE:ERF?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ERF has received a 7 out of 10:

• ERF has an Altman-Z score of 3.75. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
• ERF's Altman-Z score of 3.75 is amongst the best of the industry. ERF outperforms 82.16% of its industry peers.
• 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.
• ERF has a Debt to FCF ratio of 0.48. This is amongst the best in the industry. ERF outperforms 89.20% of its industry peers.
• A Debt/Equity ratio of 0.09 indicates that ERF is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.09, ERF is in the better half of the industry, outperforming 78.87% of the companies in the same industry.

Assessing Growth Metrics for NYSE:ERF

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ERF has received a 4 out of 10:

• ERF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.12% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

For an up to date full fundamental analysis you can check the fundamental report of ERF

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.