Enerplus Stock Analysis, Valuation (NYSE:ERF)

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$11.73 $0.17 (1.47%) ERF stock closing price Oct 12, 2018 (Closing)

Watch the robo advisor video of Enerplus stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments 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 3.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ERF stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Enerplus valuation analysis. Enerplus stock rating is our opinion about the business fundamentals of the company.

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.
  • 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.
  • Trading at a PE ratio of 25.5, ERF stock is overvalued in comparison to sector average multiple of 21.9.
  • 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 1.7.

Comments on this video and Enerplus stock

Investors can make use of the Amigobulls Enerplus stock analysis to ascertain how ERF stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of ERF stock and helps investors in making good buy and sell decision.

Enerplus revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of ERF technical analysis to check whether the fundamental story is reflected in the market sentiment.