Enerplus Corporation (ERF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERF - CA2927661025 - Common Stock
20.09 USD
-0.1 (-0.5%)
20.08 USD
-0.01 (-0.05%)
Taking everything into account, ERF scores 5 out of 10 in our fundamental rating. ERF was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. ERF scores excellent on profitability, but there are some minor concerns on its financial health. ERF is valued quite cheap, but it does not seem to be growing. This makes ERF very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ERF was profitable.
In the past year ERF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ERF reported negative net income in multiple years.
In the past 5 years ERF always reported a positive cash flow from operatings.
1.2 Ratios
ERF's Return On Assets of 18.87% is amongst the best of the industry. ERF outperforms 86.79% of its industry peers.
ERF has a better Return On Equity (30.88%) than 82.08% of its industry peers.
The Return On Invested Capital of ERF (23.71%) is better than 93.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERF is significantly above the industry average of 21.28%.
The 3 year average ROIC (44.47%) for ERF is well above the current ROIC(23.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 30.88% | ||
| ROIC | 23.71% |
ROA(3y)27%
ROA(5y)1.58%
ROE(3y)53.52%
ROE(5y)-5.89%
ROIC(3y)44.47%
ROIC(5y)N/A
1.3 Margins
ERF's Profit Margin of 23.87% is fine compared to the rest of the industry. ERF outperforms 67.45% of its industry peers.
ERF's Profit Margin has been stable in the last couple of years.
ERF's Operating Margin of 29.94% is fine compared to the rest of the industry. ERF outperforms 60.85% of its industry peers.
In the last couple of years the Operating Margin of ERF has declined.
Looking at the Gross Margin, with a value of 66.55%, ERF is in the better half of the industry, outperforming 70.75% of the companies in the same industry.
In the last couple of years the Gross Margin of ERF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.94% | ||
| PM (TTM) | 23.87% | ||
| GM | 66.55% |
OM growth 3YN/A
OM growth 5Y-1.73%
PM growth 3YN/A
PM growth 5Y-1.29%
GM growth 3Y13.58%
GM growth 5Y-1.2%
2. Health
2.1 Basic Checks
ERF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ERF has less shares outstanding than it did 1 year ago.
The debt/assets ratio for ERF has been reduced compared to a year ago.
2.2 Solvency
ERF has an Altman-Z score of 3.80. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
ERF has a Altman-Z score of 3.80. This is amongst the best in the industry. ERF outperforms 83.96% of its industry peers.
The Debt to FCF ratio of ERF is 0.66, which is an excellent value as it means it would take ERF, only 0.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ERF (0.66) is better than 88.21% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that ERF is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.08, ERF is doing good in the industry, outperforming 79.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 3.8 |
ROIC/WACC2.89
WACC8.21%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ERF may have some problems paying its short term obligations.
ERF has a worse Current ratio (0.70) than 77.83% of its industry peers.
ERF has a Quick Ratio of 0.70. This is a bad value and indicates that ERF is not financially healthy enough and could expect problems in meeting its short term obligations.
ERF's Quick ratio of 0.70 is on the low side compared to the rest of the industry. ERF is outperformed by 71.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.71%.
Measured over the past 5 years, ERF shows a small growth in Earnings Per Share. The EPS has been growing by 6.39% on average per year.
The Revenue for ERF has decreased by -28.47% in the past year. This is quite bad
ERF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
EPS 1Y (TTM)-52.71%
EPS 3YN/A
EPS 5Y6.39%
EPS Q2Q%-48.37%
Revenue 1Y (TTM)-28.47%
Revenue growth 3Y31.15%
Revenue growth 5Y5.17%
Sales Q2Q%-17.93%
3.2 Future
Based on estimates for the next years, ERF will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.13% on average per year.
ERF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y28.69%
EPS Next 2Y19.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y5.71%
Revenue Next 3YN/A
Revenue Next 5Y4.12%
3.3 Evolution
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.16, which indicates a very decent valuation of ERF.
The rest of the industry has a similar Price/Earnings ratio as ERF.
ERF is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.74, which indicates a rather cheap valuation of ERF.
Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 80.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, ERF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERF is valued a bit cheaper than the industry average as 68.40% of the companies are valued more expensively.
ERF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
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 19.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)1.75
EPS Next 2Y19.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.09
-0.1 (-0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.43%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.10B
Revenue(TTM)1.61B
Net Income(TTM)384.73M
Analysts75.56
Price Target19.29 (-3.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP12.97%
Div Incr Years4
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.85%
Min EPS beat(2)-8.69%
Max EPS beat(2)6.99%
EPS beat(4)2
Avg EPS beat(4)-5.84%
Min EPS beat(4)-29.95%
Max EPS beat(4)8.31%
EPS beat(8)5
Avg EPS beat(8)16.37%
EPS beat(12)6
Avg EPS beat(12)-7.94%
EPS beat(16)6
Avg EPS beat(16)-240.98%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.23%
PT rev (3m)6.75%
EPS NQ rev (1m)-9.47%
EPS NQ rev (3m)10%
EPS NY rev (1m)-10.66%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 6.74 | ||
| P/S | 2.55 | ||
| P/FCF | 15.62 | ||
| P/OCF | 4.97 | ||
| P/B | 3.29 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 4.9 |
EPS(TTM)1.8
EY8.96%
EPS(NY)2.98
Fwd EY14.83%
FCF(TTM)1.29
FCFY6.4%
OCF(TTM)4.04
OCFY20.12%
SpS7.89
BVpS6.1
TBVpS6.1
PEG (NY)0.39
PEG (5Y)1.75
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 30.88% | ||
| ROCE | 30.38% | ||
| ROIC | 23.71% | ||
| ROICexc | 24.22% | ||
| ROICexgc | 24.22% | ||
| OM | 29.94% | ||
| PM (TTM) | 23.87% | ||
| GM | 66.55% | ||
| FCFM | 16.3% |
ROA(3y)27%
ROA(5y)1.58%
ROE(3y)53.52%
ROE(5y)-5.89%
ROIC(3y)44.47%
ROIC(5y)N/A
ROICexc(3y)46.07%
ROICexc(5y)N/A
ROICexgc(3y)46.07%
ROICexgc(5y)N/A
ROCE(3y)56.98%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y6.21%
ROICexc growth 3YN/A
ROICexc growth 5Y13.19%
OM growth 3YN/A
OM growth 5Y-1.73%
PM growth 3YN/A
PM growth 5Y-1.29%
GM growth 3Y13.58%
GM growth 5Y-1.2%
F-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 146.97% | ||
| Cap/Sales | 34.91% | ||
| Interest Coverage | 29 | ||
| Cash Conversion | 95.37% | ||
| Profit Quality | 68.29% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.8 |
F-Score5
WACC8.21%
ROIC/WACC2.89
Cap/Depr(3y)132.01%
Cap/Depr(5y)138.02%
Cap/Sales(3y)23.79%
Cap/Sales(5y)33.65%
Profit Quality(3y)100.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-52.71%
EPS 3YN/A
EPS 5Y6.39%
EPS Q2Q%-48.37%
EPS Next Y28.69%
EPS Next 2Y19.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-28.47%
Revenue growth 3Y31.15%
Revenue growth 5Y5.17%
Sales Q2Q%-17.93%
Revenue Next Year2.01%
Revenue Next 2Y5.71%
Revenue Next 3YN/A
Revenue Next 5Y4.12%
EBIT growth 1Y-58.92%
EBIT growth 3YN/A
EBIT growth 5Y3.35%
EBIT Next Year86.17%
EBIT Next 3Y38.47%
EBIT Next 5YN/A
FCF growth 1Y-43%
FCF growth 3Y55.34%
FCF growth 5Y27.23%
OCF growth 1Y8.09%
OCF growth 3Y28.09%
OCF growth 5Y4.89%
Enerplus Corporation / ERF FAQ
What is the ChartMill fundamental rating of Enerplus Corporation (ERF) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERF.
What is the valuation status for ERF stock?
ChartMill assigns a valuation rating of 7 / 10 to Enerplus Corporation (ERF). This can be considered as Undervalued.
Can you provide the profitability details for Enerplus Corporation?
Enerplus Corporation (ERF) has a profitability rating of 7 / 10.
What is the earnings growth outlook for Enerplus Corporation?
The Earnings per Share (EPS) of Enerplus Corporation (ERF) is expected to grow by 28.69% in the next year.
Can you provide the dividend sustainability for ERF stock?
The dividend rating of Enerplus Corporation (ERF) is 5 / 10 and the dividend payout ratio is 12.97%.