Enerplus Corporation (ERF)
CA2927661025 - Common Stock
We assign a fundamental rating of 6 out of 10 to ERF. ERF was compared to 210 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 is valued quite cheap, but it does not seem to be growing. This makes ERF very considerable 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.
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 18.87%, ERF belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
The Return On Equity of ERF (30.88%) is better than 82.08% of its industry peers.
With an excellent Return On Invested Capital value of 23.71%, ERF belongs to the best of the industry, outperforming 93.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is significantly above the industry average of 30.79%.
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
Looking at the Profit Margin, with a value of 23.87%, ERF is in the better half of the industry, outperforming 67.45% of the companies in the same industry.
ERF's Profit Margin has been stable in the last couple of years.
ERF has a Operating Margin of 29.94%. This is in the better half of the industry: ERF outperforms 60.85% of its industry peers.
ERF's Operating Margin has declined in the last couple of years.
ERF's Gross Margin of 66.55% is fine compared to the rest of the industry. ERF outperforms 70.75% 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
ERF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 3.80. This indicates that ERF is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.80, ERF belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
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.
ERF has a Debt to FCF ratio of 0.66. This is amongst the best in the industry. ERF outperforms 88.21% of its industry peers.
ERF has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ERF (0.08) is better than 79.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 3.8 |
ROIC/WACC2.89
WACC8.21%
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.
With a Current ratio value of 0.70, ERF is not doing good in the industry: 77.83% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.70, ERF is doing worse than 71.23% of the companies in the same industry.
| 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.
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%-17.93%
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.16, which indicates a very decent valuation of ERF.
Compared to the rest of the industry, the Price/Earnings ratio of ERF is on the same level as its industry peers.
ERF is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.74, 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 rather cheap valuation: ERF is cheaper than 80.66% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ERF to the average of the S&P500 Index (20.35), we can say ERF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERF is valued a bit cheaper than the industry average as 68.40% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as ERF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 4.9 |
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.
A more expensive valuation may be justified as ERF's earnings are expected to grow with 19.13% in the coming years.
PEG (NY)0.39
PEG (5Y)1.75
EPS Next 2Y19.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ERF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Enerplus Corporation
NYSE:ERF (5/30/2024, 7:04:00 PM)
After market: 20.08 -0.01 (-0.05%)20.09
-0.1 (-0.5%)
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 Cap4.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 11.16 | ||
| Fwd PE | 6.74 | ||
| 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)0.39
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 30.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.94% | ||
| PM (TTM) | 23.87% | ||
| GM | 66.55% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-52.71%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y28.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.47%
Revenue growth 3Y31.15%
Revenue growth 5Y
Sales 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