Enerplus Stock Analysis, Valuation (NYSE:ERF)
Take a look at Amigobulls Enerplus stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for ERF stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Enerplus Corp (USA) Stock Rating 3.3/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ERF stock analysis. Enerplus valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Enerplus stock rating which is indicative of the company's financial performance.
Should you buy ERF stock?
- Enerplus's average operating margin of 20.8 was exceptional.
- LTM Net margins were good at 19.4% for Enerplus.
- The operating cash flow looks good at 5.3731 times the net income.
- The price to earnings multiple of 18.1 is attractive when compared with the sector average PE ratio of 22.6.
- Enerplus generates a high return on invested capital of 7.3.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Enerplus at 11.7.
- The company has a good Free Cash Flow (FCF) margin of 17.3.
Should you sell ERF stock?
- The company saw an average annual sales decline of -11.7 in sales over the last 5 years.
- The company is trading at a price to sales multiple of 3.9, which is overvalued in comparison to the Oils-Energy sector average multiple of 1.6.
Amigobulls Enerplus stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.
Among the financials of the company, Enerplus revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of ERF technical analysis to check whether the fundamental story is reflected in the market sentiment.