ENERGY SERVICES OF AMERICA (ESOA) Stock Fundamental Analysis
NASDAQ:ESOA - Nasdaq - US29271Q1031 - Common Stock - Currency: USD
Taking everything into account, ESOA scores 5 out of 10 in our fundamental rating. ESOA was compared to 63 industry peers in the Energy Equipment & Services industry. ESOA has an average financial health and profitability rating. ESOA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ESOA was profitable.
In the past year ESOA had a positive cash flow from operations.
Of the past 5 years ESOA 4 years were profitable.
ESOA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESOA (10.71%) is better than 90.48% of its industry peers.
ESOA has a Return On Equity of 33.89%. This is amongst the best in the industry. ESOA outperforms 93.65% of its industry peers.
ESOA has a Return On Invested Capital (7.86%) which is comparable to the rest of the industry.
ESOA had an Average Return On Invested Capital over the past 3 years of 11.23%. This is above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 33.89% | ||
| ROIC | 7.86% |
ROA(3y)8.14%
ROA(5y)5.27%
ROE(3y)25.88%
ROE(5y)16.19%
ROIC(3y)11.23%
ROIC(5y)N/A
1.3 Margins
ESOA has a Profit Margin (4.95%) which is in line with its industry peers.
ESOA's Profit Margin has improved in the last couple of years.
ESOA's Operating Margin of 2.94% is on the low side compared to the rest of the industry. ESOA is outperformed by 76.19% of its industry peers.
In the last couple of years the Operating Margin of ESOA has grown nicely.
Looking at the Gross Margin, with a value of 11.75%, ESOA is doing worse than 88.89% of the companies in the same industry.
ESOA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.94% | ||
| PM (TTM) | 4.95% | ||
| GM | 11.75% |
OM growth 3YN/A
OM growth 5Y20.95%
PM growth 3YN/A
PM growth 5Y48.92%
GM growth 3Y10.47%
GM growth 5Y14.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESOA is creating some value.
The number of shares outstanding for ESOA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ESOA has more shares outstanding
Compared to 1 year ago, ESOA has an improved debt to assets ratio.
2.2 Solvency
ESOA has an Altman-Z score of 3.33. This indicates that ESOA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, ESOA is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
The Debt to FCF ratio of ESOA is 2.78, which is a good value as it means it would take ESOA, 2.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ESOA (2.78) is better than 69.84% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that ESOA is somewhat dependend on debt financing.
ESOA has a worse Debt to Equity ratio (0.76) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.99
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.31 indicates that ESOA should not have too much problems paying its short term obligations.
ESOA's Current ratio of 1.31 is on the low side compared to the rest of the industry. ESOA is outperformed by 80.95% of its industry peers.
ESOA has a Quick Ratio of 1.31. This is a normal value and indicates that ESOA is financially healthy and should not expect problems in meeting its short term obligations.
ESOA's Quick ratio of 1.31 is on the low side compared to the rest of the industry. ESOA is outperformed by 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for ESOA have decreased strongly by -75.00% in the last year.
Measured over the past years, ESOA shows a very strong growth in Earnings Per Share. The EPS has been growing by 72.14% on average per year.
Looking at the last year, ESOA shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
ESOA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.06% yearly.
EPS 1Y (TTM)-75%
EPS 3YN/A
EPS 5Y72.14%
EPS Q2Q%-485.71%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y42.15%
Revenue growth 5Y15.06%
Sales Q2Q%7.8%
3.2 Future
The Earnings Per Share is expected to grow by 19.21% on average over the next years. This is quite good.
Based on estimates for the next years, ESOA will show a quite strong growth in Revenue. The Revenue will grow by 8.48% on average per year.
EPS Next Y-49.91%
EPS Next 2Y7.97%
EPS Next 3Y19.21%
EPS Next 5YN/A
Revenue Next Year10.5%
Revenue Next 2Y8.72%
Revenue Next 3Y8.48%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 68.13, which means the current valuation is very expensive for ESOA.
73.02% of the companies in the same industry are cheaper than ESOA, based on the Price/Earnings ratio.
ESOA is valuated expensively when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.66, which indicates a correct valuation of ESOA.
Based on the Price/Forward Earnings ratio, ESOA is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ESOA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.13 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESOA is valued a bit more expensive than 77.78% of the companies in the same industry.
ESOA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ESOA is cheaper than 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 9.24 |
4.3 Compensation for Growth
The decent profitability rating of ESOA may justify a higher PE ratio.
ESOA's earnings are expected to grow with 19.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y7.97%
EPS Next 3Y19.21%
5. Dividend
5.1 Amount
ESOA has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 3.70, ESOA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ESOA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of ESOA is nicely growing with an annual growth rate of 22.11%!
ESOA has been paying a dividend for over 5 years, so it has already some track record.
ESOA has decreased its dividend recently.
Dividend Growth(5Y)22.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ESOA pays out 2.75% of its income as dividend. This is a sustainable payout ratio.
ESOA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP2.75%
EPS Next 2Y7.97%
EPS Next 3Y19.21%
10.22
+0.28 (+2.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners31.15%
Inst Owner Change1.51%
Ins Owners26.13%
Ins Owner Change0.32%
Market Cap170.88M
Analysts82.5
Price Target20.91 (104.6%)
Short Float %7.19%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.06
Dividend Growth(5Y)22.11%
DP2.75%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-276.47%
Min EPS beat(2)-501.96%
Max EPS beat(2)-50.98%
EPS beat(4)2
Avg EPS beat(4)-79.58%
Min EPS beat(4)-501.96%
Max EPS beat(4)226.8%
EPS beat(8)5
Avg EPS beat(8)0.08%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)4.83%
Min Revenue beat(2)-6.03%
Max Revenue beat(2)15.68%
Revenue beat(4)2
Avg Revenue beat(4)2.64%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)15.68%
Revenue beat(8)5
Avg Revenue beat(8)19.78%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.5%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)-31.25%
EPS NY rev (3m)-31.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.13 | ||
| Fwd PE | 15.66 | ||
| P/S | 0.46 | ||
| P/FCF | 9.38 | ||
| P/OCF | 6 | ||
| P/B | 3.18 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 9.24 |
EPS(TTM)0.15
EY1.47%
EPS(NY)0.65
Fwd EY6.39%
FCF(TTM)1.09
FCFY10.67%
OCF(TTM)1.7
OCFY16.67%
SpS22
BVpS3.22
TBVpS2.55
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 33.89% | ||
| ROCE | 11.98% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 9.94% | ||
| OM | 2.94% | ||
| PM (TTM) | 4.95% | ||
| GM | 11.75% | ||
| FCFM | 4.95% |
ROA(3y)8.14%
ROA(5y)5.27%
ROE(3y)25.88%
ROE(5y)16.19%
ROIC(3y)11.23%
ROIC(5y)N/A
ROICexc(3y)13.27%
ROICexc(5y)N/A
ROICexgc(3y)14.82%
ROICexgc(5y)N/A
ROCE(3y)19.4%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y21.08%
ROICexc growth 3YN/A
ROICexc growth 5Y18.87%
OM growth 3YN/A
OM growth 5Y20.95%
PM growth 3YN/A
PM growth 5Y48.92%
GM growth 3Y10.47%
GM growth 5Y14.3%
F-Score5
Asset Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 98.04% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 5.07 | ||
| Cash Conversion | 133.78% | ||
| Profit Quality | 100% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.33 |
F-Score5
WACC7.92%
ROIC/WACC0.99
Cap/Depr(3y)108.17%
Cap/Depr(5y)105.69%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.33%
Profit Quality(3y)85.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75%
EPS 3YN/A
EPS 5Y72.14%
EPS Q2Q%-485.71%
EPS Next Y-49.91%
EPS Next 2Y7.97%
EPS Next 3Y19.21%
EPS Next 5YN/A
Revenue 1Y (TTM)4.62%
Revenue growth 3Y42.15%
Revenue growth 5Y15.06%
Sales Q2Q%7.8%
Revenue Next Year10.5%
Revenue Next 2Y8.72%
Revenue Next 3Y8.48%
Revenue Next 5YN/A
EBIT growth 1Y-35.97%
EBIT growth 3YN/A
EBIT growth 5Y39.17%
EBIT Next Year35.8%
EBIT Next 3Y33.94%
EBIT Next 5YN/A
FCF growth 1Y411.99%
FCF growth 3YN/A
FCF growth 5Y59.21%
OCF growth 1Y126.78%
OCF growth 3Y185.81%
OCF growth 5Y33.96%