Enerplus Corporation (ERF.CA) Stock Fundamental Analysis
TSX:ERF - CA2927661025 - Common Stock
26.78 CAD
-0.93 (-3.36%)
Taking everything into account, ERF scores 7 out of 10 in our fundamental rating. ERF was compared to 218 industry peers in the Oil, Gas & Consumable Fuels industry. ERF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ERF is valued quite cheap, but it does not seem to be growing. These ratings could make ERF a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ERF was profitable.
In the past year ERF had a positive cash flow from operations.
In multiple years ERF reported negative net income over the last 5 years.
In the past 5 years ERF always reported a positive cash flow from operatings.
1.2 Ratios
ERF's Return On Assets of 18.87% is amongst the best of the industry. ERF outperforms 96.65% of its industry peers.
With an excellent Return On Equity value of 30.88%, ERF belongs to the best of the industry, outperforming 97.13% of the companies in the same industry.
ERF's Return On Invested Capital of 23.71% is amongst the best of the industry. ERF outperforms 99.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is significantly above the industry average of 6.94%.
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
Looking at the Profit Margin, with a value of 23.87%, ERF belongs to the top of the industry, outperforming 90.43% 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 better Operating Margin (29.94%) than 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.
ERF's Gross Margin has been stable in the last couple of years.
| 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.
ERF has less shares outstanding than it did 1 year ago.
ERF has less shares outstanding than it did 5 years ago.
ERF has a better debt/assets ratio than last year.
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.
ERF has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.66, ERF belongs to the top of the industry, outperforming 93.30% of the companies in the same industry.
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 69.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 3.71 |
ROIC/WACC2.89
WACC8.2%
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.
ERF has a Current ratio (0.70) which 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 has a Quick ratio of 0.70. This is comparable to the rest of the industry: ERF outperforms 43.54% 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 | 0.7 | ||
| 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%.
The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
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.
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 10.80, the valuation of ERF can be described as very reasonable.
ERF's Price/Earnings is on the same level as the industry average.
ERF is valuated cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.53, the valuation of ERF can be described as very cheap.
67.94% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, ERF is valued rather cheaply.
| 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.
Based on the Price/Free Cash Flow ratio, ERF is valued a bit cheaper than 65.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.13 | ||
| EV/EBITDA | 4.76 |
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.
The excellent 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)0.38
PEG (5Y)1.69
EPS Next 2Y19.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERF has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
ERF's Dividend Yield is comparable with the industry average which is at 5.89.
Compared to an average S&P500 Dividend Yield of 2.45, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of ERF is nicely growing with an annual growth rate of 13.74%!
ERF has paid a dividend for at least 10 years, which is 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 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.
The dividend of ERF is growing, but earnings are growing more, so the dividend growth is 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%