Price to trailing twelve month operating cash flow for ERF is currently 0.68, higher than only 5.12% of US stocks with positive operating cash flow.
Of note is the ratio of ENERPLUS Corp's sales and general administrative expense to its total operating expenses; merely 4.57% of US stocks have a lower such ratio.
ENERPLUS Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 56.13%, greater than the shareholder yield of 94.37% of stocks in our set.
If you're looking for stocks that are quantitatively similar to ENERPLUS Corp, a group of peers worth examining would be PTEN, BRY, PDCE, TPRE, and ARLP.
Enerplus Corporation engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company was founded in 1986 and is based in Calgary, Canada.
ERF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ERF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that ENERPLUS Corp ranked in the 16th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ERF, they are:
Its compound free cash flow growth rate, as measured over the past 5.01 years, is -0.18% -- higher than merely 8.78% of stocks in our DCF forecasting set.
ENERPLUS Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 14. This value is greater than 66.35% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of ENERPLUS Corp? See CEO, RNET, APA, CLB, and PEIX.
Here's why investors with a higher risk exposure can look to bet on energy stocks such as Enerplus (TSX:ERF). The post 2 Wildcard TSX Energy Stocks That Could Gain Up to 60% From Current Prices appeared first on The Motley Fool Canada .