Enerplus Corporation (ERF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ERF - CA2927661025 - Common Stock
20.09 USD
-0.1 (-0.5%)
20.08 USD
-0.01 (-0.05%)
Overall ERF gets a fundamental rating of 5 out of 10. We evaluated ERF against 207 industry peers in the Oil, Gas & Consumable Fuels industry. ERF scores excellent on profitability, but there are some minor concerns on its financial health. ERF is cheap, but on the other hand it scores bad on growth. These ratings would make ERF suitable 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.
- In multiple years ERF reported negative net income over the last 5 years.
- ERF had a positive operating cash flow in each of the past 5 years.
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.
- ERF has a Return On Equity of 30.88%. This is amongst the best in the industry. ERF outperforms 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.
- ERF had an Average Return On Invested Capital over the past 3 years of 44.47%. This is significantly above the industry average of 21.94%.
- 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.
- 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 29.94%, ERF is doing good in the industry, outperforming 60.85% of the companies in the same industry.
- In the last couple of years the Operating Margin of ERF has declined.
- Looking at the Gross Margin, with a value of 66.55%, ERF is in the better half of the industry, outperforming 70.75% of the companies in the same industry.
- 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.
- ERF has less shares outstanding than it did 1 year ago.
- ERF has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.80 indicates that ERF is not in any danger for 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 better Debt to FCF ratio (0.66) than 88.21% of its industry peers.
- A Debt/Equity ratio of 0.08 indicates that ERF is not too dependend on debt financing.
- 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.
- The Current ratio of ERF (0.70) is worse than 77.83% of its industry peers.
- 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.
- The Quick ratio of ERF (0.70) is worse than 71.23% of its industry peers.
| 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.
- Looking at the last year, ERF shows a very negative growth in Revenue. The Revenue has decreased by -28.47% in the last year.
- Measured over the past years, ERF shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
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
- 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 11.16, the valuation of ERF can be described as very reasonable.
- The rest of the industry has a similar Price/Earnings ratio as ERF.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ERF is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.74, the valuation of ERF can be described as very cheap.
- 80.66% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ERF to the average of the S&P500 Index (25.72), 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 68.40% of the companies in the same industry.
- ERF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 4.9 |
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.
- 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
- ERF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Enerplus Corporation / ERF FAQ
What is the ChartMill fundamental rating of Enerplus Corporation (ERF) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERF.
What is the valuation status for ERF stock?
ChartMill assigns a valuation rating of 7 / 10 to Enerplus Corporation (ERF). This can be considered as Undervalued.
Can you provide the profitability details for Enerplus Corporation?
Enerplus Corporation (ERF) has a profitability rating of 7 / 10.
What is the earnings growth outlook for Enerplus Corporation?
The Earnings per Share (EPS) of Enerplus Corporation (ERF) is expected to grow by 28.69% in the next year.
Can you provide the dividend sustainability for ERF stock?
The dividend rating of Enerplus Corporation (ERF) is 5 / 10 and the dividend payout ratio is 12.97%.