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ENSIGN ENERGY SERVICES INC (ESI.CA) Stock Fundamental Analysis

TSX:ESI - Toronto Stock Exchange - CA2935701078 - Common Stock - Currency: CAD

3.06  +0.02 (+0.66%)

Fundamental Rating

3

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. ESI may be in some trouble as it scores bad on both profitability and health. ESI has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

3

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.
Each year in the past 5 years ESI had a positive operating cash flow.
ESI.CA Yearly Net Income VS EBIT VS OCF VS FCFESI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M

1.2 Ratios

ESI has a worse Return On Assets (1.05%) than 67.86% of its industry peers.
The Return On Equity of ESI (2.27%) is worse than 67.86% of its industry peers.
The Return On Invested Capital of ESI (5.27%) is worse than 71.43% of its industry peers.
Industry RankSector 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
ESI.CA Yearly ROA, ROE, ROICESI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10

1.3 Margins

ESI has a Profit Margin of 1.42%. This is in the lower half of the industry: ESI underperforms 67.86% of its industry peers.
ESI's Profit Margin has declined in the last couple of years.
ESI has a worse Operating Margin (7.06%) than 64.29% of its industry peers.
With a decent Gross Margin value of 31.02%, ESI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of ESI has grown nicely.
Industry RankSector 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%
ESI.CA Yearly Profit, Operating, Gross MarginsESI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20 30

2

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.
The number of shares outstanding for ESI has been increased compared to 5 years ago.
Compared to 1 year ago, ESI has an improved debt to assets ratio.
ESI.CA Yearly Shares OutstandingESI.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
ESI.CA Yearly Total Debt VS Total AssetsESI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.49, we must say that ESI is in the distress zone and has some risk of bankruptcy.
ESI has a worse Altman-Z score (1.49) than 64.29% of its industry peers.
The Debt to FCF ratio of ESI is 4.18, which is a neutral value as it means it would take ESI, 4.18 years of fcf income to pay off all of its debts.
ESI has a Debt to FCF ratio (4.18) which is in line with its industry peers.
A Debt/Equity ratio of 0.75 indicates that ESI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, ESI is doing worse than 64.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 4.18
Altman-Z 1.49
ROIC/WACC0.5
WACC10.43%
ESI.CA Yearly LT Debt VS Equity VS FCFESI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

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 has a Current ratio of 0.98. This is amonst the worse of the industry: ESI underperforms 85.71% of its industry peers.
A Quick Ratio of 0.84 indicates that ESI may have some problems paying its short term obligations.
ESI has a Quick ratio of 0.84. This is amonst the worse of the industry: ESI underperforms 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.84
ESI.CA Yearly Current Assets VS Current LiabilitesESI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

6

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 -9.64% yearly.
ESI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.87%.
ESI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.15% yearly.
EPS 1Y (TTM)41.67%
EPS 3YN/A
EPS 5Y-9.64%
EPS Q2Q%200%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y24.13%
Revenue growth 5Y9.15%
Sales Q2Q%-2.2%

3.2 Future

ESI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.04% yearly.
The Revenue is expected to grow by 1.55% on average over the next years.
EPS Next Y-97.7%
EPS Next 2Y-19.83%
EPS Next 3Y17.87%
EPS Next 5Y31.04%
Revenue Next Year-6.41%
Revenue Next 2Y-2.86%
Revenue Next 3Y-1.2%
Revenue Next 5Y1.55%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
ESI.CA Yearly Revenue VS EstimatesESI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
ESI.CA Yearly EPS VS EstimatesESI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 1 -1

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.00, the valuation of ESI can be described as rather expensive.
ESI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.27, ESI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 21.64, ESI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ESI is valued a bit more expensive than 60.71% of the companies in the same industry.
ESI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 96.48.
Industry RankSector Rank
PE 18
Fwd PE 21.64
ESI.CA Price Earnings VS Forward Price EarningsESI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESI indicates a rather cheap valuation: ESI is cheaper than 82.14% of the companies listed 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 RankSector Rank
P/FCF 2.12
EV/EBITDA 3.38
ESI.CA Per share dataESI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

A more expensive valuation may be justified as ESI's earnings are expected to grow with 17.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.83%
EPS Next 3Y17.87%

0

5. Dividend

5.1 Amount

ESI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ENSIGN ENERGY SERVICES INC

TSX:ESI (2/13/2025, 7:00:00 PM)

3.06

+0.02 (+0.66%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)02-28 2025-02-28/amc
Inst Owners5.94%
Inst Owner ChangeN/A
Ins Owners26.95%
Ins Owner ChangeN/A
Market Cap565.09M
Analysts76
Price Target4 (30.72%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)3.3%
PT rev (3m)10.59%
EPS NQ rev (1m)-66.65%
EPS NQ rev (3m)-95.24%
EPS NY rev (1m)-71.43%
EPS NY rev (3m)-92.31%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-8.61%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 18
Fwd PE 21.64
P/S 0.27
P/FCF 2.12
P/OCF 1.29
P/B 0.43
P/tB 0.43
EV/EBITDA 3.38
EPS(TTM)0.17
EY5.56%
EPS(NY)0.14
Fwd EY4.62%
FCF(TTM)1.45
FCFY47.24%
OCF(TTM)2.38
OCFY77.7%
SpS11.48
BVpS7.19
TBVpS7.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.49
F-Score8
WACC10.43%
ROIC/WACC0.5
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-9.64%
EPS Q2Q%200%
EPS Next Y-97.7%
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-6.41%
Revenue Next 2Y-2.86%
Revenue Next 3Y-1.2%
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%