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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Enerplus Corporation (TSE:ERF) due to its excellent fundamentals in more than one area. ERF is a company with great financial health as well as a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Enerplus here.
Solid track record with excellent balance sheet
In the previous year, ERF has ramped up its bottom line by 60%, with its latest earnings level surpassing its average level over the last five years. Not only did ERF outperformed its past performance, its growth also surpassed the Oil and Gas industry expansion, which generated a 16% earnings growth. This is an optimistic signal for the future. ERF’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that ERF manages its cash and cost levels well, which is a crucial insight into the health of the company. ERF seems to have put its debt to good use, generating operating cash levels of 1.06x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Enerplus, I’ve compiled three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ERF’s future growth? Take a look at our free research report of analyst consensus for ERF’s outlook.
- Valuation: What is ERF worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ERF is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ERF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.