Enerplus Corporation (ERF.CA) Stock Fundamental Analysis
TSX:ERF - Toronto Stock Exchange - CA2927661025 - Common Stock - Currency: CAD
Taking everything into account, ERF scores 7 out of 10 in our fundamental rating. ERF was compared to 207 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. This makes ERF very considerable 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.
Each year in the past 5 years ERF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.87%, ERF belongs to the top of the industry, outperforming 96.65% of the companies in the same industry.
The Return On Equity of ERF (30.88%) is better than 97.13% of its industry peers.
ERF's Return On Invested Capital of 23.71% is amongst the best of the industry. ERF outperforms 99.04% 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 7.44%.
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 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
ERF's Profit Margin of 23.87% is amongst the best of the industry. ERF outperforms 90.43% of its industry peers.
ERF's Profit Margin has been stable in the last couple of years.
ERF's Operating Margin of 29.94% is amongst the best of the industry. ERF outperforms 85.17% of its industry peers.
In the last couple of years the Operating Margin of ERF has declined.
ERF has a Gross Margin of 66.55%. This is in the better half of the industry: ERF outperforms 77.03% 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
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
Compared to 1 year ago, ERF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.71 indicates that ERF is not in any danger for bankruptcy at the moment.
The Altman-Z score of ERF (3.71) is better than 80.86% 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.
The Debt to FCF ratio of ERF (0.66) is better than 93.30% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that ERF is not too dependend on debt financing.
ERF's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. ERF outperforms 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 3.71 |
ROIC/WACC2.89
WACC8.2%
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 comparable to the rest of the industry.
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's Quick ratio of 0.70 is in line compared to the rest of the industry. ERF outperforms 43.54% of its industry peers.
ERF does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.7 | ||
| 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.
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%-12.38%
3.2 Future
Based on estimates for the next years, ERF will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.13% on average per year.
The Revenue is expected to grow by 4.12% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.80, the valuation of ERF can be described as reasonable.
ERF's Price/Earnings ratio is in line with the industry average.
ERF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
Based on the Price/Forward Earnings ratio of 6.53, 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 somewhat cheap valuation: ERF is cheaper than 67.94% of the companies listed in the same industry.
ERF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 6.53 |
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 77.99% of the companies listed in the same industry.
65.07% of the companies in the same industry are more expensive than ERF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.13 | ||
| EV/EBITDA | 4.76 |
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 excellent 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)0.38
PEG (5Y)1.69
EPS Next 2Y19.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, ERF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.83, ERF has a dividend in line with its industry peers.
With a Dividend Yield of 1.21, ERF pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
As ERF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.74%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
12.97% of the earnings are spent on dividend by ERF. This is a low number and sustainable payout ratio.
ERF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.97%
EPS Next 2Y19.13%
EPS Next 3YN/A
TSX:ERF (6/3/2024, 7:00:00 PM)
26.78
-0.93 (-3.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.24%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.47B
Analysts75
Price Target26.18 (-2.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.23
Dividend Growth(5Y)13.74%
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)0.45%
PT rev (3m)7.67%
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 | 10.8 | ||
| Fwd PE | 6.53 | ||
| P/S | 2.47 | ||
| P/FCF | 15.13 | ||
| P/OCF | 4.82 | ||
| P/B | 3.19 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)2.48
EY9.26%
EPS(NY)4.1
Fwd EY15.31%
FCF(TTM)1.77
FCFY6.61%
OCF(TTM)5.56
OCFY20.77%
SpS10.86
BVpS8.39
TBVpS8.39
PEG (NY)0.38
PEG (5Y)1.69
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 | 3.71 |
F-Score5
WACC8.2%
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%-12.38%
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%