ENERGY SERVICES OF AMERICA (ESOA) Stock Fundamental Analysis
USA - NASDAQ:ESOA - US29271Q1031 - Common Stock
10.23 USD
+0.23 (+2.3%)
10.23 USD
0 (0%)
ESOA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. ESOA has an average financial health and profitability rating. ESOA is quite expensive at the moment. 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.
ESOA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ESOA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ESOA (1.48%) is worse than 65.57% of its industry peers.
ESOA has a Return On Equity (5.13%) which is in line with its industry peers.
ESOA has a Return On Invested Capital of 3.71%. This is in the lower half of the industry: ESOA underperforms 68.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESOA is above the industry average of 8.05%.
The 3 year average ROIC (11.23%) for ESOA is well above the current ROIC(3.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.13% | ||
| ROIC | 3.71% |
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's Profit Margin of 0.73% is on the low side compared to the rest of the industry. ESOA is outperformed by 68.85% of its industry peers.
ESOA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 1.43%, ESOA is doing worse than 80.33% of the companies in the same industry.
ESOA's Operating Margin has improved in the last couple of years.
ESOA has a worse Gross Margin (10.35%) than 90.16% of its industry peers.
In the last couple of years the Gross Margin of ESOA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.43% | ||
| PM (TTM) | 0.73% | ||
| GM | 10.35% |
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.
ESOA has about the same amout of shares outstanding than it did 1 year ago.
ESOA has more shares outstanding than it did 5 years ago.
ESOA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.02 indicates that ESOA is not in any danger for bankruptcy at the moment.
ESOA has a better Altman-Z score (3.02) than 78.69% of its industry peers.
ESOA has a debt to FCF ratio of 48.04. This is a negative value and a sign of low solvency as ESOA would need 48.04 years to pay back of all of its debts.
The Debt to FCF ratio of ESOA (48.04) is worse than 63.93% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that ESOA is somewhat dependend on debt financing.
The Debt to Equity ratio of ESOA (0.88) is worse than 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 48.04 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.43
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ESOA should not have too much problems paying its short term obligations.
ESOA has a worse Current ratio (1.34) than 73.77% of its industry peers.
A Quick Ratio of 1.34 indicates that ESOA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.34, ESOA perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for ESOA have decreased strongly by -68.00% in the last year.
The Earnings Per Share has been growing by 72.14% on average over the past years. This is a very strong growth
ESOA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.52%.
The Revenue has been growing by 15.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-68%
EPS 3YN/A
EPS 5Y72.14%
EPS Q2Q%9.09%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y42.15%
Revenue growth 5Y15.06%
Sales Q2Q%20.57%
3.2 Future
ESOA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.51% yearly.
The Revenue is expected to grow by 8.29% on average over the next years. This is quite good.
EPS Next Y-72.68%
EPS Next 2Y7.97%
EPS Next 3Y19.63%
EPS Next 5Y19.51%
Revenue Next Year14.15%
Revenue Next 2Y8.72%
Revenue Next 3Y8.48%
Revenue Next 5Y8.29%
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 63.94, which means the current valuation is very expensive for ESOA.
ESOA's Price/Earnings ratio is a bit more expensive when compared to the industry. ESOA is more expensive than 70.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESOA to the average of the S&P500 Index (27.32), we can say ESOA is valued expensively.
A Price/Forward Earnings ratio of 15.67 indicates a correct valuation of ESOA.
The rest of the industry has a similar Price/Forward Earnings ratio as ESOA.
When comparing the Price/Forward Earnings ratio of ESOA to the average of the S&P500 Index (22.89), we can say ESOA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.94 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
86.89% of the companies in the same industry are cheaper than ESOA, based on the Enterprise Value to EBITDA ratio.
ESOA's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ESOA is more expensive than 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 138.46 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ESOA's earnings are expected to grow with 19.63% in the coming years.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y7.97%
EPS Next 3Y19.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, ESOA is not a good candidate for dividend investing.
ESOA's Dividend Yield is comparable with the industry average which is at 3.29.
With a Dividend Yield of 0.89, ESOA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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.
The dividend of ESOA decreased recently.
Dividend Growth(5Y)22.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ESOA pays out 35.85% of its income as dividend. This is a sustainable payout ratio.
The dividend of ESOA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.85%
EPS Next 2Y7.97%
EPS Next 3Y19.63%
10.23
+0.23 (+2.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners31.37%
Inst Owner Change9.81%
Ins Owners26.13%
Ins Owner Change0.03%
Market Cap170.33M
Analysts82.86
Price Target21.42 (109.38%)
Short Float %9.62%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.06
Dividend Growth(5Y)22.11%
DP35.85%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-251.96%
Min EPS beat(2)-501.96%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-82.03%
Min EPS beat(4)-501.96%
Max EPS beat(4)226.8%
EPS beat(8)4
Avg EPS beat(8)-24.43%
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)4.7%
Min Revenue beat(2)-6.03%
Max Revenue beat(2)15.42%
Revenue beat(4)3
Avg Revenue beat(4)8.41%
Min Revenue beat(4)-6.03%
Max Revenue beat(4)15.68%
Revenue beat(8)5
Avg Revenue beat(8)14.55%
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)0%
PT rev (3m)2.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)46.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-45.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.94 | ||
| Fwd PE | 15.67 | ||
| P/S | 0.44 | ||
| P/FCF | 138.46 | ||
| P/OCF | 13.71 | ||
| P/B | 3.12 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)0.16
EY1.56%
EPS(NY)0.65
Fwd EY6.38%
FCF(TTM)0.07
FCFY0.72%
OCF(TTM)0.75
OCFY7.29%
SpS23.16
BVpS3.28
TBVpS2.61
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.13% | ||
| ROCE | 5.61% | ||
| ROIC | 3.71% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.9% | ||
| OM | 1.43% | ||
| PM (TTM) | 0.73% | ||
| GM | 10.35% | ||
| FCFM | 0.32% |
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-Score4
Asset Turnover2.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 48.04 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 97.43% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 73.12% | ||
| Profit Quality | 43.98% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.02 |
F-Score4
WACC8.71%
ROIC/WACC0.43
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)-68%
EPS 3YN/A
EPS 5Y72.14%
EPS Q2Q%9.09%
EPS Next Y-72.68%
EPS Next 2Y7.97%
EPS Next 3Y19.63%
EPS Next 5Y19.51%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y42.15%
Revenue growth 5Y15.06%
Sales Q2Q%20.57%
Revenue Next Year14.15%
Revenue Next 2Y8.72%
Revenue Next 3Y8.48%
Revenue Next 5Y8.29%
EBIT growth 1Y-71.52%
EBIT growth 3YN/A
EBIT growth 5Y39.17%
EBIT Next Year26.05%
EBIT Next 3Y33.94%
EBIT Next 5Y27.8%
FCF growth 1Y204.25%
FCF growth 3YN/A
FCF growth 5Y59.21%
OCF growth 1Y56.06%
OCF growth 3Y185.81%
OCF growth 5Y33.96%