Enerplus Corporation (ERF) Stock Fundamental Analysis
NYSE:ERF - CA2927661025 - Common Stock
20.09 USD
-0.1 (-0.5%)
20.08 USD
-0.01 (-0.05%)
Taking everything into account, ERF scores 6 out of 10 in our fundamental rating. ERF was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making ERF a very profitable company, without any liquidiy or solvency issues. ERF has a bad growth rate and is valued cheaply. These ratings would make ERF suitable 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.
In multiple years ERF reported negative net income over the last 5 years.
In the past 5 years ERF always reported a positive cash flow from operatings.
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's Return On Equity of 30.88% is amongst the best of the industry. ERF outperforms 82.08% of its industry peers.
ERF's Return On Invested Capital of 23.71% is amongst the best of the industry. ERF outperforms 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 23.39%.
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 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
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.
ERF's Profit Margin has been stable in the last couple of years.
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.
ERF has a Gross Margin of 66.55%. This is in the better half 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.
The number of shares outstanding for ERF has been reduced compared to 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.
ERF's Altman-Z score of 3.80 is amongst the best of the industry. ERF outperforms 83.96% of its industry peers.
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.
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 Rank | Sector 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.
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.
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.
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%.
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
ERF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.13% yearly.
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
Based on the Price/Earnings ratio of 11.16, the valuation of ERF can be described as reasonable.
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 (27.17), we can say ERF is valued rather cheaply.
The Price/Forward Earnings ratio is 6.74, 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 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 22.78.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERF is on the same level as its industry peers.
| 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.
The decent profitability rating of ERF may justify a higher PE ratio.
ERF's earnings are expected to grow with 19.13% in the coming years. This may justify a more expensive valuation.
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 |
20.09
-0.1 (-0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.43%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.10B
Analysts75.56
Price Target19.29 (-3.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3YN/A
ROICexcg 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 Rank | Sector 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%