ENSIGN ENERGY SERVICES INC (ESI.CA) Stock Fundamental Analysis
TSX:ESI - Toronto Stock Exchange - CA2935701078 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to ESI. ESI was compared to 28 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of ESI have multiple concerns. ESI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ESI had positive earnings in the past year.
In the past year ESI had a positive cash flow from operations.
In multiple years ESI reported negative net income over the last 5 years.
In the past 5 years ESI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.05%, ESI is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
ESI has a Return On Equity of 2.27%. This is in the lower half of the industry: ESI underperforms 67.86% of its industry peers.
ESI has a worse Return On Invested Capital (5.27%) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 2.27% | ||
| ROIC | 5.27% |
ROA(3y)-1.23%
ROA(5y)-2.2%
ROE(3y)-3.2%
ROE(5y)-5.31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.42%, ESI is doing worse than 67.86% of the companies in the same industry.
In the last couple of years the Profit Margin of ESI has declined.
The Operating Margin of ESI (7.06%) is worse than 64.29% of its industry peers.
ESI's Gross Margin of 31.02% is fine compared to the rest of the industry. ESI outperforms 78.57% of its industry peers.
ESI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.06% | ||
| PM (TTM) | 1.42% | ||
| GM | 31.02% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-14.52%
GM growth 3Y3.11%
GM growth 5Y3.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESI is destroying value.
Compared to 1 year ago, ESI has about the same amount of shares outstanding.
ESI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ESI has been reduced compared to a year ago.
2.2 Solvency
ESI has an Altman-Z score of 1.47. This is a bad value and indicates that ESI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.47, ESI is doing worse than 64.29% of the companies in the same industry.
ESI has a debt to FCF ratio of 4.18. This is a neutral value as ESI would need 4.18 years to pay back of all of its debts.
ESI has a Debt to FCF ratio of 4.18. This is in the better half of the industry: ESI outperforms 60.71% of its industry peers.
ESI has a Debt/Equity ratio of 0.75. This is a neutral value indicating ESI is somewhat dependend on debt financing.
The Debt to Equity ratio of ESI (0.75) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.51
WACC10.25%
2.3 Liquidity
ESI has a Current Ratio of 0.98. This is a bad value and indicates that ESI is not financially healthy enough and could expect problems in meeting its short term obligations.
ESI's Current ratio of 0.98 is on the low side compared to the rest of the industry. ESI is outperformed by 89.29% of its industry peers.
ESI has a Quick Ratio of 0.98. This is a bad value and indicates that ESI is not financially healthy enough and could expect problems in meeting its short term obligations.
ESI's Quick ratio of 0.84 is on the low side compared to the rest of the industry. ESI is outperformed by 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.67% over the past year.
ESI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.65% yearly.
Looking at the last year, ESI shows a quite strong growth in Revenue. The Revenue has grown by 15.87% in the last year.
The Revenue has been growing by 9.15% on average over the past years. This is quite good.
EPS 1Y (TTM)41.67%
EPS 3YN/A
EPS 5Y-9.65%
EPS Q2Q%200%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y24.13%
Revenue growth 5Y9.15%
Sales Q2Q%-2.2%
3.2 Future
The Earnings Per Share is expected to grow by 31.04% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.55% on average over the next years.
EPS Next Y-100%
EPS Next 2Y-19.83%
EPS Next 3Y17.87%
EPS Next 5Y31.04%
Revenue Next Year-6.24%
Revenue Next 2Y-2.89%
Revenue Next 3Y-1.29%
Revenue Next 5Y1.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.18, which indicates a correct valuation of ESI.
The rest of the industry has a similar Price/Earnings ratio as ESI.
When comparing the Price/Earnings ratio of ESI to the average of the S&P500 Index (29.75), we can say ESI is valued slightly cheaper.
ESI is valuated rather expensively with a Price/Forward Earnings ratio of 18.25.
Based on the Price/Forward Earnings ratio, ESI is valued a bit more expensive than 60.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESI to the average of the S&P500 Index (22.44), we can say ESI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 18.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESI is valued cheaper than 82.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESI is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.79 | ||
| EV/EBITDA | 3.27 |
4.3 Compensation for Growth
ESI's earnings are expected to grow with 17.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.83%
EPS Next 3Y17.87%
5. Dividend
5.1 Amount
No dividends for ESI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ESI (3/3/2025, 7:00:00 PM)
2.58
-0.18 (-6.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners5.97%
Inst Owner ChangeN/A
Ins Owners27%
Ins Owner ChangeN/A
Market Cap476.53M
Analysts76
Price Target3.95 (53.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.26%
Min EPS beat(2)-18.79%
Max EPS beat(2)27.32%
EPS beat(4)2
Avg EPS beat(4)4.53%
Min EPS beat(4)-114.85%
Max EPS beat(4)124.42%
EPS beat(8)3
Avg EPS beat(8)-15.62%
EPS beat(12)5
Avg EPS beat(12)80.49%
EPS beat(16)8
Avg EPS beat(16)67.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.37%
Revenue beat(4)1
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-5.15%
Max Revenue beat(4)0.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.3%
Revenue beat(12)4
Avg Revenue beat(12)-1.32%
Revenue beat(16)5
Avg Revenue beat(16)-1.66%
PT rev (1m)-1.06%
PT rev (3m)6.9%
EPS NQ rev (1m)-33.3%
EPS NQ rev (3m)-66.65%
EPS NY rev (1m)-100%
EPS NY rev (3m)-100%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 18.25 | ||
| P/S | 0.22 | ||
| P/FCF | 1.79 | ||
| P/OCF | 1.09 | ||
| P/B | 0.36 | ||
| P/tB | 0.36 | ||
| EV/EBITDA | 3.27 |
EPS(TTM)0.17
EY6.59%
EPS(NY)0.14
Fwd EY5.48%
FCF(TTM)1.45
FCFY56.02%
OCF(TTM)2.38
OCFY92.14%
SpS11.48
BVpS7.19
TBVpS7.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 2.27% | ||
| ROCE | 6.02% | ||
| ROIC | 5.27% | ||
| ROICexc | 5.32% | ||
| ROICexgc | 5.32% | ||
| OM | 7.06% | ||
| PM (TTM) | 1.42% | ||
| GM | 31.02% | ||
| FCFM | 12.59% |
ROA(3y)-1.23%
ROA(5y)-2.2%
ROE(3y)-3.2%
ROE(5y)-5.31%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-14.52%
GM growth 3Y3.11%
GM growth 5Y3.32%
F-Score8
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 50.7% | ||
| Cap/Sales | 8.12% | ||
| Interest Coverage | 1.18 | ||
| Cash Conversion | 89.78% | ||
| Profit Quality | 884.93% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.47 |
F-Score8
WACC10.25%
ROIC/WACC0.51
Cap/Depr(3y)60.94%
Cap/Depr(5y)46.73%
Cap/Sales(3y)13.09%
Cap/Sales(5y)10.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.67%
EPS 3YN/A
EPS 5Y-9.65%
EPS Q2Q%200%
EPS Next Y-100%
EPS Next 2Y-19.83%
EPS Next 3Y17.87%
EPS Next 5Y31.04%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y24.13%
Revenue growth 5Y9.15%
Sales Q2Q%-2.2%
Revenue Next Year-6.24%
Revenue Next 2Y-2.89%
Revenue Next 3Y-1.29%
Revenue Next 5Y1.55%
EBIT growth 1Y-11.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year165.96%
EBIT Next 3Y38.91%
EBIT Next 5Y30.95%
FCF growth 1Y227.08%
FCF growth 3Y17.18%
FCF growth 5Y34.44%
OCF growth 1Y84.73%
OCF growth 3Y25.87%
OCF growth 5Y26.49%