Enerplus Corporation (ERF) Fundamental Analysis & Valuation

NYSE:ERF • CA2927661025

Current stock price

20.09 USD
-0.1 (-0.5%)
At close:
20.08 USD
-0.01 (-0.05%)
After Hours:

This ERF fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ERF Profitability Analysis

1.1 Basic Checks

  • In the past year ERF was profitable.
  • ERF had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: ERF reported negative net income in multiple years.
  • ERF had a positive operating cash flow in each of the past 5 years.
ERF Yearly Net Income VS EBIT VS OCF VS FCFERF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

1.2 Ratios

  • ERF has a Return On Assets of 18.87%. This is amongst the best in the industry. ERF outperforms 86.79% of its industry peers.
  • With an excellent Return On Equity value of 30.88%, ERF belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
  • ERF has a Return On Invested Capital of 23.71%. This is amongst the best in the industry. ERF outperforms 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 23.05%.
  • 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 RankSector 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
ERF Yearly ROA, ROE, ROICERF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

1.3 Margins

  • ERF has a better Profit Margin (23.87%) than 67.45% of its industry peers.
  • In the last couple of years the Profit Margin of ERF has remained more or less at the same level.
  • ERF has a Operating Margin of 29.94%. This is in the better half of the industry: ERF outperforms 60.85% of its industry peers.
  • ERF's Operating Margin has declined in the last couple of years.
  • The Gross Margin of ERF (66.55%) is better than 70.75% of its industry peers.
  • ERF's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ERF Yearly Profit, Operating, Gross MarginsERF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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6

2. ERF Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERF is creating value.
  • Compared to 1 year ago, ERF has less shares outstanding
  • Compared to 1 year ago, ERF has an improved debt to assets ratio.
ERF Yearly Shares OutstandingERF Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
ERF Yearly Total Debt VS Total AssetsERF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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.
  • ERF has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
  • ERF has a better Debt to FCF ratio (0.66) than 88.21% of its industry peers.
  • ERF has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
  • ERF has a Debt to Equity ratio of 0.08. This is in the better half of the industry: ERF outperforms 79.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.66
Altman-Z 3.8
ROIC/WACC2.89
WACC8.21%
ERF Yearly LT Debt VS Equity VS FCFERF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 0.70 indicates that ERF may have some problems paying its short term obligations.
  • The Current ratio of ERF (0.70) is worse than 77.83% of its industry peers.
  • A Quick Ratio of 0.70 indicates that ERF may have some problems paying its short term obligations.
  • ERF has a Quick ratio of 0.70. This is in the lower half of the industry: ERF underperforms 71.23% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.7
ERF Yearly Current Assets VS Current LiabilitesERF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ERF Growth Analysis

3.1 Past

  • The earnings per share for ERF have decreased strongly by -52.71% in the last year.
  • 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
  • Measured over the past years, ERF shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
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

  • ERF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.13% yearly.
  • 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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ERF Yearly Revenue VS EstimatesERF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 2028 500M 1B 1.5B 2B
ERF Yearly EPS VS EstimatesERF Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 -4 -6

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7

4. ERF Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.16, the valuation of ERF can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERF is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of ERF to the average of the S&P500 Index (25.23), we can say ERF is valued rather cheaply.
  • 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 cheaply inside the industry as 80.66% of the companies are valued more expensively.
  • ERF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.16
Fwd PE 6.74
ERF Price Earnings VS Forward Price EarningsERF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • ERF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERF is cheaper than 68.40% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERF is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 15.62
EV/EBITDA 4.9
ERF Per share dataERF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ERF Dividend Analysis

5.1 Amount

  • No dividends for ERF!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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ERF Fundamentals: All Metrics, Ratios and Statistics

Enerplus Corporation

NYSE:ERF (5/30/2024, 8:04:00 PM)

After market: 20.08 -0.01 (-0.05%)

20.09

-0.1 (-0.5%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-08
Earnings (Next)08-07
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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%.