Enerplus Corporation (ERF) Fundamental Analysis & Valuation

NYSE:ERF • CA2927661025

20.09 USD
-0.1 (-0.5%)
At close: May 30, 2024
20.08 USD
-0.01 (-0.05%)
After Hours: 5/30/2024, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ERF fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ERF. ERF was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. ERF has an excellent profitability rating, 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 could make ERF a good candidate for value investing.


Dividend Valuation Growth Profitability Health

7

1. ERF Profitability Analysis

1.1 Basic Checks

  • ERF had positive earnings in the past year.
  • 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.
ERF Yearly Net Income VS EBIT VS OCF VS FCFERF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 18.87%, ERF belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
  • With an excellent Return On Equity value of 30.88%, ERF belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
  • The Return On Invested Capital of ERF (23.71%) is better than 93.87% of its industry peers.
  • ERF had an Average Return On Invested Capital over the past 3 years of 44.47%. This is significantly above the industry average of 22.17%.
  • 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 RankSector 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
ERF Yearly ROA, ROE, ROICERF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

1.3 Margins

  • The Profit Margin of ERF (23.87%) is better than 67.45% of its industry peers.
  • ERF's Profit Margin has been stable in the last couple of years.
  • ERF has a better Operating Margin (29.94%) than 60.85% of its industry peers.
  • In the last couple of years the Operating Margin of ERF has declined.
  • The Gross Margin of ERF (66.55%) is better than 70.75% of its industry peers.
  • In the last couple of years the Gross Margin of ERF has remained more or less at the same level.
Industry RankSector 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%
ERF Yearly Profit, Operating, Gross MarginsERF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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6

2. ERF Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERF is creating value.
  • Compared to 1 year ago, ERF has less shares outstanding
  • The debt/assets ratio for ERF has been reduced compared to a year ago.
ERF Yearly Shares OutstandingERF Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
ERF Yearly Total Debt VS Total AssetsERF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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.
  • Looking at the Altman-Z score, with a value of 3.80, ERF belongs to the top 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.
  • Looking at the Debt to FCF ratio, with a value of 0.66, ERF belongs to the top of the industry, outperforming 88.21% of the companies in the same industry.
  • ERF has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.08, ERF is doing good in the industry, outperforming 79.72% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.66
Altman-Z 3.8
ROIC/WACC2.89
WACC8.21%
ERF Yearly LT Debt VS Equity VS FCFERF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 0.70 indicates that ERF may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.70, ERF is doing worse than 77.83% of the companies in the same industry.
  • A Quick Ratio of 0.70 indicates that ERF may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.70, ERF is not doing good in the industry: 71.23% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.7
ERF Yearly Current Assets VS Current LiabilitesERF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ERF Growth Analysis

3.1 Past

  • ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.71%.
  • 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 -28.47%.
  • The Revenue has been growing slightly by 5.17% on average over the past years.
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.
  • The Revenue is expected to grow by 4.12% on average over the next years.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ERF Yearly Revenue VS EstimatesERF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 2028 500M 1B 1.5B 2B
ERF Yearly EPS VS EstimatesERF Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 -4 -6

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7

4. ERF Valuation Analysis

4.1 Price/Earnings Ratio

  • ERF is valuated reasonably with a Price/Earnings ratio of 11.16.
  • ERF's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of ERF to the average of the S&P500 Index (26.29), we can say ERF is valued rather cheaply.
  • ERF is valuated cheaply with a Price/Forward Earnings ratio of 6.74.
  • Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 80.66% of the companies in the same industry.
  • ERF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 11.16
Fwd PE 6.74
ERF Price Earnings VS Forward Price EarningsERF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 68.40% of the companies in the same industry are more expensive than ERF, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ERF.
Industry RankSector Rank
P/FCF 15.62
EV/EBITDA 4.9
ERF Per share dataERF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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.
  • The decent 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)0.39
PEG (5Y)1.75
EPS Next 2Y19.13%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ERF Dividend Analysis

5.1 Amount

  • ERF does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ERF Fundamentals: All Metrics, Ratios and Statistics

Enerplus Corporation

NYSE:ERF (5/30/2024, 8:04:00 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)05-08
Earnings (Next)08-07
Inst Owners0.43%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.10B
Revenue(TTM)1.61B
Net Income(TTM)384.73M
Analysts75.56
Price Target19.29 (-3.98%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
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)1.23%
PT rev (3m)6.75%
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 RankSector Rank
PE 11.16
Fwd PE 6.74
P/S 2.55
P/FCF 15.62
P/OCF 4.97
P/B 3.29
P/tB 3.29
EV/EBITDA 4.9
EPS(TTM)1.8
EY8.96%
EPS(NY)2.98
Fwd EY14.83%
FCF(TTM)1.29
FCFY6.4%
OCF(TTM)4.04
OCFY20.12%
SpS7.89
BVpS6.1
TBVpS6.1
PEG (NY)0.39
PEG (5Y)1.75
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3YN/A
ROICexgc 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 RankSector 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 3.8
F-Score5
WACC8.21%
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%-17.93%
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%

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%.