ENERPLUS CORP (ERF.CA)
CA2927661025 - Common Stock
Overall ERF gets a fundamental rating of 7 out of 10. We evaluated ERF against 222 industry peers in the Oil, Gas & Consumable Fuels industry. ERF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ERF scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ERF suitable for value investing!
1. Profitability
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.
In the past 5 years ERF always reported a positive cash flow from operatings.
1.2 Ratios
ERF's Return On Assets of 22.05% is amongst the best of the industry. ERF outperforms 96.28% of its industry peers.
Looking at the Return On Equity, with a value of 37.16%, ERF belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 27.18%, ERF belongs to the best of the industry, outperforming 98.60% 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 8.08%.
The 3 year average ROIC (44.47%) for ERF is well above the current ROIC(27.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.05% | ||
| ROE | 37.16% | ||
| ROIC | 27.18% |
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 has a Profit Margin of 27.42%. This is amongst the best in the industry. ERF outperforms 89.77% 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's Operating Margin of 33.30% is amongst the best of the industry. ERF outperforms 86.51% of its industry peers.
In the last couple of years the Operating Margin of ERF has declined.
ERF's Gross Margin of 67.81% is fine compared to the rest of the industry. ERF outperforms 79.53% 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 | 33.3% | ||
| PM (TTM) | 27.42% | ||
| GM | 67.81% |
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.
Compared to 5 years ago, ERF has less shares outstanding
ERF has a better debt/assets ratio than last year.
2.2 Solvency
ERF has an Altman-Z score of 3.77. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.77, ERF is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
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 91.63% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ERF is not too dependend on debt financing.
ERF has a Debt to Equity ratio of 0.09. This is in the better half of the industry: ERF outperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 3.77 |
ROIC/WACC3.41
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ERF may have some problems paying its short term obligations.
ERF's Current ratio of 0.80 is on the low side compared to the rest of the industry. ERF is outperformed by 70.23% of its industry peers.
ERF has a Quick Ratio of 0.80. 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 0.80. This is comparable to the rest of the industry: ERF outperforms 46.98% of its industry peers.
The current and quick ratio evaluation for ERF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for ERF have decreased strongly by -36.16% in the last year.
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 -29.33% in the past year. This is quite bad
The Revenue has been growing slightly by 5.17% on average over the past years.
EPS 1Y (TTM)-36.16%
EPS 3YN/A
EPS 5Y6.39%
EPS growth Q2Q-61.55%
Revenue 1Y (TTM)-29.33%
Revenue growth 3Y31.15%
Revenue growth 5Y5.17%
Revenue growth Q2Q-20.34%
3.2 Future
Based on estimates for the next years, ERF will show a very strong growth in Earnings Per Share. The EPS will grow by 31.12% on average per year.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y44.06%
EPS Next 2Y31.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y5.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.78, which indicates a very decent valuation of ERF.
Based on the Price/Earnings ratio, ERF is valued a bit cheaper than 63.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERF to the average of the S&P500 Index (24.84), we can say ERF is valued rather cheaply.
ERF is valuated cheaply with a Price/Forward Earnings ratio of 6.79.
Based on the Price/Forward Earnings ratio, ERF is valued a bit cheaper than 72.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERF to the average of the S&P500 Index (21.35), we can say ERF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERF indicates a somewhat cheap valuation: ERF is cheaper than 78.14% 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 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.8 | ||
| EV/EBITDA | 4.58 |
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.
ERF has an outstanding profitability rating, which may justify a higher PE ratio.
ERF's earnings are expected to grow with 31.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)1.53
EPS Next 2Y31.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, ERF has a reasonable but not impressive dividend return.
ERF's Dividend Yield is comparable with the industry average which is at 8.84.
Compared to an average S&P500 Dividend Yield of 2.41, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
On average, the dividend of ERF grows each year by 13.74%, which is quite nice.
ERF has been paying a dividend for at least 10 years, so it has a reliable track record.
ERF has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.74%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
10.66% of the earnings are spent on dividend by ERF. This is a low number and sustainable payout ratio.
The dividend of ERF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.66%
EPS Next 2Y31.12%
EPS Next 3YN/A
ENERPLUS CORP
TSX:ERF (4/26/2024, 6:00:00 PM)
28.06
+0.15 (+0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 6.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.22
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.05% | ||
| ROE | 37.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.3% | ||
| PM (TTM) | 27.42% | ||
| GM | 67.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-36.16%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y44.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-29.33%
Revenue growth 3Y31.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y