Enerplus Corporation (ERF)

CA2927661025 - Common Stock

20.09  -0.1 (-0.5%)

After market: 20.08 -0.01 (-0.05%)

Fundamental Rating

6

ERF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 212 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 cheap, but on the other hand it scores bad on growth. This makes ERF very considerable for value investing!



7

1. Profitability

1.1 Basic Checks

In the past year ERF was profitable.
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

ERF's Return On Assets of 18.87% is amongst the best of the industry. ERF outperforms 86.79% of its industry peers.
Looking at the Return On Equity, with a value of 30.88%, ERF belongs to the top 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.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is significantly above the industry average of 38.31%.
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 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

1.3 Margins

ERF has a Profit Margin of 23.87%. This is in the better half of the industry: ERF outperforms 67.45% of its industry peers.
In the last couple of years the Profit Margin of ERF has remained more or less at the same level.
ERF's Operating Margin of 29.94% is fine compared to the rest of the industry. ERF outperforms 60.85% of its industry peers.
ERF's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 66.55%, ERF is doing good in 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 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%

7

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.
Compared to 1 year ago, ERF has less shares outstanding
Compared to 5 years ago, ERF has less shares outstanding
Compared to 1 year ago, ERF has an improved debt to assets ratio.

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.
The Debt to FCF ratio of ERF is 0.66, which is an excellent value as it means it would take ERF, only 0.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ERF (0.66) is better than 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.
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%

2.3 Liquidity

A Current Ratio of 0.70 indicates that ERF may have some problems paying its short term obligations.
ERF has a worse Current ratio (0.70) 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.
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

3

3. Growth

3.1 Past

ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.71%.
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
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

The Earnings Per Share is expected to grow by 19.13% on average over the next years. This is quite good.
ERF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
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.

7

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.
The average S&P500 Price/Earnings ratio is at 28.56. ERF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.74, which indicates a rather cheap valuation of ERF.
Based on the Price/Forward Earnings ratio, ERF is valued cheaply inside the industry as 80.66% of the companies are valued more expensively.
ERF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.00.
Industry RankSector Rank
PE 11.16
Fwd PE 6.74

4.2 Price Multiples

ERF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ERF is cheaper than 68.40% of the companies in the same industry.
ERF's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector 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.
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

0

5. Dividend

5.1 Amount

No dividends for ERF!.
Industry RankSector 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 RankSector 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)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector 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 RankSector 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 RankSector 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