Enerplus Corporation (ERF) Stock Fundamental Analysis
USA - NYSE:ERF - CA2927661025 - Common Stock
20.09 USD
-0.1 (-0.5%)
20.08 USD
-0.01 (-0.05%)
We assign a fundamental rating of 6 out of 10 to ERF. ERF was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making ERF a very profitable company, without any liquidiy or solvency issues. ERF is cheap, but on the other hand it scores bad on growth. With these ratings, ERF could be worth investigating further 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.
ERF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.87%, ERF belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
ERF has a Return On Equity of 30.88%. This is amongst the best in the industry. ERF outperforms 82.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.71%, ERF belongs to the top of the industry, outperforming 93.87% of the companies in the same industry.
ERF had an Average Return On Invested Capital over the past 3 years of 44.47%. This is significantly above the industry average of 21.66%.
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
Looking at the Profit Margin, with a value of 23.87%, ERF is in the better half of the industry, outperforming 67.45% of the companies in the same industry.
ERF's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 29.94%, ERF is in the better half of the industry, outperforming 60.85% of the companies in the same industry.
In the last couple of years the Operating Margin of ERF has declined.
ERF's Gross Margin of 66.55% is fine compared to the rest of the industry. ERF outperforms 70.75% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERF is creating value.
The number of shares outstanding for ERF has been reduced compared to 1 year ago.
Compared to 5 years ago, ERF has less shares outstanding
Compared to 1 year ago, ERF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.80 indicates that ERF is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.80, ERF belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
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 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 better Debt to Equity ratio (0.08) than 79.72% of its industry peers.
| 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's Current ratio of 0.70 is on the low side compared to the rest of the industry. ERF is outperformed by 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 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
The earnings per share for ERF have decreased strongly by -52.71% in the last year.
The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
ERF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.47%.
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
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
The Price/Earnings ratio is 11.16, which indicates a very decent valuation of ERF.
ERF's Price/Earnings ratio is in line with the industry average.
ERF is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.74, the valuation of ERF can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERF indicates a rather cheap valuation: ERF is cheaper than 80.66% of the companies listed in the same industry.
ERF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| 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 68.40% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ERF.
| 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.
A more expensive valuation may be justified as ERF's earnings are expected to grow with 19.13% in the coming years.
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
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
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
ROICexcg growth 3YN/A
ROICexcg 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%