NYSE:ERF is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Apr 4, 2024

Our stock screening tool has pinpointed ENERPLUS CORP (NYSE:ERF) as an undervalued stock. NYSE:ERF maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Valuation Metrics for NYSE:ERF

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ERF scores a 8 out of 10:

A Price/Earnings ratio of 9.60 indicates a reasonable valuation of ERF.
62.91% of the companies in the same industry are more expensive than ERF, based on the Price/Earnings ratio.
ERF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.07.
Based on the Price/Forward Earnings ratio of 6.85, the valuation of ERF can be described as very cheap.
83.10% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
ERF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERF indicates a somewhat cheap valuation: ERF is cheaper than 69.48% of the companies listed in the same industry.
ERF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERF is cheaper than 64.32% 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 30.82% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:ERF's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ERF, the assigned 7 is a significant indicator of profitability:

The Return On Assets of ERF (22.05%) is better than 87.79% of its industry peers.
ERF has a better Return On Equity (37.16%) than 84.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.18%, ERF belongs to the top of the industry, outperforming 92.49% of the companies in the same industry.
The last Return On Invested Capital (27.18%) 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.
ERF has a Profit Margin of 27.42%. This is in the better half of the industry: ERF outperforms 67.14% of its industry peers.
ERF's Operating Margin of 33.30% is fine compared to the rest of the industry. ERF outperforms 61.03% of its industry peers.
ERF's Gross Margin of 67.81% is fine compared to the rest of the industry. ERF outperforms 70.89% of its industry peers.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ERF scores a 6 out of 10:

ERF has an Altman-Z score of 3.74. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
ERF's Altman-Z score of 3.74 is fine compared to the rest of the industry. ERF outperforms 79.81% of its industry peers.
ERF has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
The Debt to FCF ratio of ERF (0.48) is better than 89.20% of its industry peers.
ERF has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.09, ERF is doing good in the industry, outperforming 79.34% of the companies in the same industry.

Analyzing Growth Metrics

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ERF was assigned a score of 4 for growth:

The Earnings Per Share is expected to grow by 30.82% on average over the next years. This is a very strong growth
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.

Check the latest full fundamental report of ERF for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.