Enerplus Corporation
Enerplus Corporation Fundamental Analysis
Enerplus Corporation (ERF) shows strong financial fundamentals with a PE ratio of 9.31, profit margin of 26.92%, and ROE of 39.59%. The company generates $1.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ERF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentERF demonstrates superior asset utilization.
Valuation Score
ExcellentERF trades at attractive valuation levels.
Growth Score
ModerateERF shows steady but slowing expansion.
Financial Health Score
ModerateERF shows balanced financial health with some risks.
Profitability Score
ExcellentERF achieves industry-leading margins.
Key Financial Metrics
Is ERF Expensive or Cheap?
P/E Ratio
ERF trades at 9.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ERF's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Enerplus Corporation at 3.46 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.92 times EBITDA. This is generally considered low.
How Well Does ERF Make Money?
Net Profit Margin
For every $100 in sales, Enerplus Corporation keeps $26.92 as profit after all expenses.
Operating Margin
Core operations generate 34.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.59 in profit for every $100 of shareholder equity.
ROA
Enerplus Corporation generates $22.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enerplus Corporation generates strong operating cash flow of $906.64M, reflecting robust business health.
Free Cash Flow
Enerplus Corporation generates strong free cash flow of $373.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.83 in free cash annually.
FCF Yield
ERF converts 9.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.37
vs 25 benchmark
How ERF Stacks Against Its Sector Peers
| Metric | ERF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.31 | 20.19 | Better (Cheaper) |
| ROE | 39.59% | 1019.00% | Weak |
| Net Margin | 26.92% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.17 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.80 | 4.60 | Weak Liquidity |
| ROA | 22.05% | -11655350.00% (disorted) | Strong |
ERF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Enerplus Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity