ENERPLUS CORP (ERF)
CA2927661025 - Common Stock
We assign a fundamental rating of 6 out of 10 to ERF. ERF was compared to 214 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. These ratings would make ERF suitable for value investing!
1. Profitability
1.1 Basic Checks
ERF had positive earnings in the past year.
In the past year ERF had a positive cash flow from operations.
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
With an excellent Return On Assets value of 22.05%, ERF belongs to the best of the industry, outperforming 88.26% of the companies in the same industry.
ERF's Return On Equity of 37.16% is amongst the best of the industry. ERF outperforms 84.98% of its industry peers.
ERF's Return On Invested Capital of 27.18% is amongst the best of the industry. ERF outperforms 92.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERF is in line with the industry average of 45.92%.
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.
| 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
Looking at the Profit Margin, with a value of 27.42%, ERF is in the better half of the industry, outperforming 67.14% 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.
With a decent Operating Margin value of 33.30%, ERF is doing good in the industry, outperforming 61.97% of the companies in the same industry.
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 70.89% of its industry peers.
ERF's Gross Margin has been stable in the last couple of years.
| 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.
ERF has less shares outstanding than it did 5 years ago.
ERF has a better debt/assets ratio than last year.
2.2 Solvency
ERF has an Altman-Z score of 3.78. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
ERF's Altman-Z score of 3.78 is amongst the best of the industry. ERF outperforms 80.28% 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.
ERF has a better Debt to FCF ratio (0.48) than 89.20% 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 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 3.78 |
ROIC/WACC3.41
WACC7.97%
2.3 Liquidity
ERF has a Current 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.
Looking at the Current ratio, with a value of 0.80, ERF is doing worse than 72.77% of the companies in the same industry.
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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. ERF is outperformed by 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.16%.
ERF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.39% yearly.
ERF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.33%.
ERF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.17% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.77, the valuation of ERF can be described as reasonable.
60.56% of the companies in the same industry are more expensive than ERF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.92, ERF is valued rather cheaply.
The Price/Forward Earnings ratio is 6.78, which indicates a rather cheap valuation of ERF.
ERF's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERF is cheaper than 84.04% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERF to the average of the S&P500 Index (21.49), we can say ERF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERF is valued a bit cheaper than 68.54% of the companies in the same industry.
ERF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERF is cheaper than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.8 | ||
| EV/EBITDA | 4.59 |
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 a very decent 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 1.19%, ERF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.78, ERF is paying slightly less dividend.
With a Dividend Yield of 1.19, ERF pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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.
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 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
NYSE:ERF (4/26/2024, 6:00:00 PM)
After market: 20.51 0 (0%)20.51
+0.07 (+0.34%)
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 Cap4.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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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 | 9.77 | ||
| Fwd PE | 6.78 | ||
| 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