Enerplus Corporation (ERF) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ERF • CA2927661025
20.09 USD
-0.1 (-0.5%)
At close: May 30, 2024
20.08 USD
-0.01 (-0.05%)
After Hours: 5/30/2024, 8:04:00 PM
Taking everything into account, ERF scores 5 out of 10 in our fundamental rating. ERF was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. ERF has an excellent profitability rating, but there are some minor concerns on its financial health. ERF is cheap, but on the other hand it scores bad on growth. This makes ERF very considerable for value investing!
1. Profitability
1.1 Basic Checks
- ERF had positive earnings in the past year.
- ERF had a positive operating cash flow in the past year.
- In multiple years ERF reported negative net income over the last 5 years.
- Each year in the past 5 years ERF had a positive operating cash flow.
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.
- ERF has a better Return On Equity (30.88%) than 82.08% of its industry peers.
- ERF has a better Return On Invested Capital (23.71%) than 93.87% of its industry peers.
- ERF had an Average Return On Invested Capital over the past 3 years of 44.47%. This is significantly above the industry average of 21.94%.
- The last Return On Invested Capital (23.71%) 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.
| 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
- With a decent Profit Margin value of 23.87%, ERF is doing good in the industry, outperforming 67.45% of the companies in the same industry.
- 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.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERF is creating value.
- The number of shares outstanding for ERF has been reduced compared to 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.
- ERF's Debt to FCF ratio of 0.66 is amongst the best of the industry. ERF outperforms 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
- ERF has a Current 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.
- Looking at the Current ratio, with a value of 0.70, ERF is doing worse than 77.83% of the companies in the same industry.
- 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 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%.
- ERF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.39% yearly.
- 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
- The Earnings Per Share is expected to grow by 19.13% on average over the next years. This is quite good.
- Based on estimates for the next years, ERF will show a small growth in Revenue. The Revenue will grow by 4.12% on average per year.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.16, the valuation of ERF can be described as very reasonable.
- The rest of the industry has a similar Price/Earnings ratio as ERF.
- When comparing the Price/Earnings ratio of ERF to the average of the S&P500 Index (28.18), we can say ERF is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.74, which indicates a rather cheap valuation of ERF.
- 80.66% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ERF to the average of the S&P500 Index (25.51), we can say ERF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
- 68.40% of the companies in the same industry are more expensive than ERF, based on the Enterprise Value to EBITDA ratio.
- ERF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
- ERF's 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
- No dividends for ERF!.
| 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)05-08 2024-05-08/amc
Earnings (Next)08-07 2024-08-07/amc
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%.