ENERGY SERVICES OF AMERICA (ESOA) Stock Fundamental Analysis
NASDAQ:ESOA - Nasdaq - US29271Q1031 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ESOA. ESOA was compared to 62 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of ESOA get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, ESOA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ESOA had positive earnings in the past year.
In the past year ESOA had a positive cash flow from operations.
Of the past 5 years ESOA 4 years were profitable.
Each year in the past 5 years ESOA had a positive operating cash flow.
1.2 Ratios
ESOA has a Return On Assets of 10.71%. This is amongst the best in the industry. ESOA outperforms 90.32% of its industry peers.
Looking at the Return On Equity, with a value of 33.89%, ESOA belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
ESOA has a Return On Invested Capital of 7.86%. This is comparable to the rest of the industry: ESOA outperforms 59.68% of its industry peers.
ESOA had an Average Return On Invested Capital over the past 3 years of 11.23%. This is above the industry average of 8.42%.
| 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 comparable to the rest of the industry.
ESOA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 2.94%, ESOA is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ESOA has grown nicely.
ESOA has a worse Gross Margin (11.75%) than 88.71% of its industry peers.
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.
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.
The debt/assets ratio for ESOA has been reduced compared to a year ago.
2.2 Solvency
ESOA has an Altman-Z score of 3.31. This indicates that ESOA is financially healthy and has little risk of bankruptcy at the moment.
ESOA's Altman-Z score of 3.31 is amongst the best of the industry. ESOA outperforms 80.65% of its industry peers.
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.
ESOA has a Debt to FCF ratio of 2.78. This is in the better half of the industry: ESOA outperforms 69.35% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that ESOA is somewhat dependend on debt financing.
ESOA's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. ESOA is outperformed by 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.88
WACC8.91%
2.3 Liquidity
ESOA has a Current 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 has a worse Current ratio (1.31) than 80.65% 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 has a worse Quick ratio (1.31) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
ESOA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -75.00%.
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.
ESOA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
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
ESOA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.21% yearly.
ESOA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.48% yearly.
EPS Next Y-72.68%
EPS Next 2Y7.97%
EPS Next 3Y19.21%
EPS Next 5YN/A
Revenue Next Year10%
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
A Price/Earnings ratio of 64.93 indicates a quite expensive valuation of ESOA.
Based on the Price/Earnings ratio, ESOA is valued a bit more expensive than 72.58% of the companies in the same industry.
ESOA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 14.92, the valuation of ESOA can be described as correct.
66.13% of the companies in the same industry are cheaper than ESOA, based on the Price/Forward Earnings ratio.
ESOA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.93 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
82.26% of the companies in the same industry are cheaper than ESOA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ESOA is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
The decent profitability rating of ESOA may justify a higher PE ratio.
A more expensive valuation may be justified as ESOA's earnings are expected to grow with 19.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y7.97%
EPS Next 3Y19.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, ESOA is not a good candidate for dividend investing.
ESOA's Dividend Yield is comparable with the industry average which is at 3.63.
Compared to an average S&P500 Dividend Yield of 2.34, ESOA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of ESOA grows each year by 22.11%, which is quite nice.
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
2.75% of the earnings are spent on dividend by ESOA. This is a low number and 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%
9.74
-0.14 (-1.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners31.15%
Inst Owner Change0%
Ins Owners26.13%
Ins Owner Change0.32%
Market Cap162.85M
Analysts82.86
Price Target21.42 (119.92%)
Short Float %9.36%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)2.44%
PT rev (3m)5%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)9.09%
EPS NY rev (1m)-45.45%
EPS NY rev (3m)-62.5%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.93 | ||
| Fwd PE | 14.92 | ||
| P/S | 0.44 | ||
| P/FCF | 8.93 | ||
| P/OCF | 5.72 | ||
| P/B | 3.03 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)0.15
EY1.54%
EPS(NY)0.65
Fwd EY6.7%
FCF(TTM)1.09
FCFY11.19%
OCF(TTM)1.7
OCFY17.49%
SpS22
BVpS3.22
TBVpS2.55
PEG (NY)N/A
PEG (5Y)0.9
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 | 3.31 |
F-Score5
WACC8.91%
ROIC/WACC0.88
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-72.68%
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%
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%