ENERPLUS CORP (ERF)
CA2927661025 - Common Stock
Taking everything into account, ERF scores 6 out of 10 in our fundamental rating. ERF was compared to 216 industry peers in the Oil, Gas & Consumable Fuels industry. ERF gets an excellent profitability rating and is at the same time showing great financial health properties. ERF scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
The reported net income has been mixed in the past 5 years: ERF reported negative net income in multiple years.
ERF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERF's Return On Assets of 31.72% is amongst the best of the industry. ERF outperforms 90.28% of its industry peers.
Looking at the Return On Equity, with a value of 55.11%, ERF belongs to the top of the industry, outperforming 89.35% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 31.30%, ERF belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.72% | ||
| ROE | 55.11% | ||
| ROIC | 31.3% |
ROA(3y)-1.34%
ROA(5y)-0.4%
ROE(3y)-16.32%
ROE(5y)-9.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 37.76%, ERF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ERF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 39.69%, ERF is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
In the last couple of years the Operating Margin of ERF has grown nicely.
With a decent Gross Margin value of 70.56%, ERF is doing good in the industry, outperforming 72.69% of the companies in the same industry.
ERF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.69% | ||
| PM (TTM) | 37.76% | ||
| GM | 70.56% |
OM growth 3Y29.82%
OM growth 5Y16.5%
PM growth 3YN/A
PM growth 5Y8.58%
GM growth 3Y6.06%
GM growth 5Y3.21%
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
ERF has a better debt/assets ratio than last year.
2.2 Solvency
ERF has an Altman-Z score of 3.23. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
ERF has a better Altman-Z score (3.23) than 75.93% 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 87.04% of the companies in the same industry.
ERF has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
ERF has a Debt to Equity ratio of 0.15. This is in the better half of the industry: ERF outperforms 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 3.23 |
ROIC/WACC3.88
WACC8.06%
2.3 Liquidity
A Current Ratio of 0.87 indicates that ERF may have some problems paying its short term obligations.
ERF has a Current ratio of 0.87. This is in the lower half of the industry: ERF underperforms 68.98% of its industry peers.
ERF has a Quick Ratio of 0.87. This is a bad value and indicates that ERF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ERF (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.73% over the past year.
ERF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.30% yearly.
The Revenue for ERF has decreased by -46.02% in the past year. This is quite bad
Measured over the past years, ERF shows a very strong growth in Revenue. The Revenue has been growing by 20.65% on average per year.
EPS 1Y (TTM)9.73%
EPS 3Y58.88%
EPS 5Y29.3%
EPS growth Q2Q-39.8%
Revenue 1Y (TTM)-46.02%
Revenue growth 3Y23.32%
Revenue growth 5Y20.65%
Revenue growth Q2Q-30.4%
3.2 Future
Based on estimates for the next years, ERF will show a decrease in Earnings Per Share. The EPS will decrease by -0.04% on average per year.
ERF is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -66.02% yearly.
EPS Next Y-41.44%
EPS Next 2Y-14.91%
EPS Next 3Y-0.04%
EPS Next 5YN/A
Revenue Next Year-14.19%
Revenue Next 2Y-0.67%
Revenue Next 3Y-66.02%
Revenue Next 5YN/A
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 decreasing.
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
ERF is valuated cheaply with a Price/Earnings ratio of 5.30.
Based on the Price/Earnings ratio, ERF is valued cheaper than 81.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERF to the average of the S&P500 Index (24.54), we can say ERF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.64, 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 75.93% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.65, ERF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERF is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERF indicates a somewhat cheap valuation: ERF is cheaper than 67.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 3.27 |
4.3 Compensation for Growth
ERF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-14.91%
EPS Next 3Y-0.04%
5. Dividend
5.1 Amount
ERF has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
ERF's Dividend Yield is comparable with the industry average which is at 6.68.
Compared to an average S&P500 Dividend Yield of 2.63, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
On average, the dividend of ERF grows each year by 8.46%, 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)8.46%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
ERF pays out 7.25% of its income as dividend. This is a sustainable payout ratio.
DP7.25%
EPS Next 2Y-14.91%
EPS Next 3Y-0.04%
ENERPLUS CORP
NYSE:ERF (11/29/2023, 7:04:00 PM)
After market: 15.8 0 (0%)15.8
-0.03 (-0.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-02 2023-11-02/amc
Earnings (Next)02-21 2024-02-21/amc
Inst Owners60.05%
Inst Owner Change3.19%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.25B
Analysts78.82
Price Target18.12 (14.68%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)8.46%
DP7.25%
Div Incr Years2
Div Non Decr Years5
Ex-Date11-29 2023-11-29 (0.06)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.82%
Min EPS beat(2)-29.95%
Max EPS beat(2)8.31%
EPS beat(4)2
Avg EPS beat(4)18.55%
Min EPS beat(4)-29.95%
Max EPS beat(4)107.31%
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
PT rev (1m)7.03%
PT rev (3m)1.37%
EPS NQ rev (1m)13.39%
EPS NQ rev (3m)-34.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-29.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 6.64 | ||
| P/S | 1.83 | ||
| P/FCF | 8.32 | ||
| P/OCF | 3.39 | ||
| P/B | 2.67 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 3.27 |
EPS(TTM)2.98
EY18.86%
EPS(NY)2.38
Fwd EY15.07%
FCF(TTM)1.9
FCFY12.02%
OCF(TTM)4.66
OCFY29.46%
SpS8.63
BVpS5.92
TBVpS5.92
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.72% | ||
| ROE | 55.11% | ||
| ROCE | 43.02% | ||
| ROIC | 31.3% | ||
| ROICexc | 32.21% | ||
| ROICexgc | 32.21% | ||
| OM | 39.69% | ||
| PM (TTM) | 37.76% | ||
| GM | 70.56% | ||
| FCFM | 22% |
ROA(3y)-1.34%
ROA(5y)-0.4%
ROE(3y)-16.32%
ROE(5y)-9.54%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y74.22%
ROICexcg growth 5Y40.37%
ROICexc growth 3Y80.27%
ROICexc growth 5Y51.42%
OM growth 3Y29.82%
OM growth 5Y16.5%
PM growth 3YN/A
PM growth 5Y8.58%
GM growth 3Y6.06%
GM growth 5Y3.21%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 159.81% | ||
| Cap/Sales | 31.92% | ||
| Interest Coverage | 37.25 | ||
| Cash Conversion | 90.38% | ||
| Profit Quality | 58.27% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.23 |
F-Score6
WACC8.06%
ROIC/WACC3.88
Cap/Depr(3y)122.3%
Cap/Depr(5y)149.71%
Cap/Sales(3y)28.25%
Cap/Sales(5y)36.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)9.73%
EPS 3Y58.88%
EPS 5Y29.3%
EPS growth Q2Q-39.8%
EPS Next Y-41.44%
EPS Next 2Y-14.91%
EPS Next 3Y-0.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-46.02%
Revenue growth 3Y23.32%
Revenue growth 5Y20.65%
Revenue growth Q2Q-30.4%
Revenue Next Year-14.19%
Revenue Next 2Y-0.67%
Revenue Next 3Y-66.02%
Revenue Next 5YN/A
EBIT growth 1Y-57.24%
EBIT growth 3Y60.1%
EBIT growth 5Y40.56%
EBIT Next Year76.09%
EBIT Next 3Y31.26%
EBIT Next 5YN/A
FCF growth 1Y140.52%
FCF growth 3Y125.47%
FCF growth 5Y187.04%
OCF growth 1Y129.23%
OCF growth 3Y19.12%
OCF growth 5Y19.77%