Energy Services of America (ESOA) AI Stock Analysis

• Market Cap: $146.96M
• Dividend Yield: 0.68%
• Average Volume (3M): 208.98K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.20
• Revenue Growth: 8.42%
• EPS Growth: 156.91%
• Country: US
• Employees: 1,396
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.44
• Shares Outstanding: 16,756,683
• 10 Day Avg. Volume: 143,727
• 30 Day Avg. Volume: 208,982
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.44
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Energy Services of America demonstrates strong financial performance with robust revenue growth and profitability. However, technical indicators show a bearish trend, which may impact short-term performance. The stock appears undervalued with a low P/E ratio, providing a potential opportunity for long-term investors. Overall, the company is well-positioned financially, but technical weakness and modest dividend yield moderate the overall score.

Energy Services of America Business Overview & Revenue Model

Company Description

Energy Services of America Corporation provides contracting services for utilities and energy related companies in the United States. It constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. The company also offers a range of electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. It provides liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. The company serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.

How the Company Makes Money

Energy Services of America generates revenue primarily through contracts for construction and maintenance services with energy producers, utilities, and industrial clients. The company earns money by providing specialized labor and expertise in building and maintaining critical infrastructure such as pipelines and electrical systems. Its key revenue streams include project-based contracts, ongoing maintenance agreements, and emergency repair services. ESOA's financial performance is bolstered by long-term partnerships with major energy companies, as well as its ability to secure contracts for significant infrastructure projects driven by regulatory compliance and expansion needs in the energy sector.

Energy Services of America Financial Statement Overview

Summary

Energy Services of America is performing well across key financial metrics. The company exhibits strong revenue growth and profitability, supported by efficient cash flow management and a stable balance sheet with moderate leverage. While there are minor areas for improvement in asset utilization and EBIT margins, the overall financial health is solid, positioning the company well within the construction industry.

Income Statement

Energy Services of America shows strong revenue growth with a notable increase in total revenue from the previous periods. The TTM gross profit margin is approximately 13.63%, supported by healthy EBIT and EBITDA margins of 4.92% and 11.16%, respectively. The net profit margin stands at a robust 6.60%, reflecting efficient cost management and profitability. However, the slightly lower EBIT margin compared to EBITDA suggests some impact from depreciation and amortization.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.38, indicating moderate leverage. The return on equity (ROE) is impressive at approximately 39.18%, showing strong shareholder returns. The equity ratio is around 31.77%, suggesting a solid equity base relative to total assets, though there is room for improvement in asset utilization to enhance financial stability.

Cash Flow

Energy Services of America demonstrates strong cash flow management with an operating cash flow to net income ratio of 1.03 and a free cash flow to net income ratio of 0.73, indicating efficient conversion of earnings to cash. The free cash flow growth rate is 76.58%, reflecting substantial improvement and potential for reinvestment or debt reduction.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
362.36M	351.88M	304.10M	197.59M	122.47M	119.19M
	Gross Profit
49.38M	49.95M	36.81M	22.37M	12.92M	13.50M
	EBIT
17.84M	19.84M	13.04M	132.97K	-892.62K	3.67M
	EBITDA
43.30M	44.69M	20.59M	6.25M	4.68M	8.07M
	Net Income Common Stockholders
23.92M	25.11M	7.40M	3.75M	9.10M	2.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.35M	12.93M	16.43M	7.43M	8.23M	11.22M
	Total Assets
192.10M	158.25M	142.51M	112.63M	70.17M	58.16M
	Total Debt
23.01M	36.39M	48.18M	32.24M	17.46M	15.77M
	Net Debt
2.66M	23.46M	31.74M	24.81M	9.24M	4.56M
	Total Liabilities
131.06M	99.55M	107.92M	74.30M	35.53M	32.34M
	Stockholders Equity
61.05M	58.69M	34.59M	38.33M	34.64M	25.82M
Cash Flow		Free Cash Flow
17.52M	9.92M	10.25M	2.98M	-5.25M	11.45M
	Operating Cash Flow
24.69M	18.68M	21.07M	8.28M	798.94K	14.99M
	Investing Cash Flow
-30.16M	-8.00M	-10.18M	-8.28M	-8.69M	-2.77M
	Financing Cash Flow
14.57M	-14.19M	-1.89M	-805.41K	4.90M	-5.58M

Energy Services of America Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESOA, the sentiment is Negative. The current price of 8.77 is below the 20-day moving average (MA) of 8.90, below the 50-day MA of 9.47, and below the 200-day MA of 10.73, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 63.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESOA.

Energy Services of America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESOA	72 Outperform	$146.96M	6.20	49.47%	0.68%	8.42%	156.91%
AMRC	68 Neutral	$565.49M	10.11	5.92%	―	28.76%	-9.56%
ORN	63 Neutral	$241.56M	―	-1.21%	―	11.89%	84.04%
Sector *	63 Neutral	$4.27B	11.40	5.38%	214.63%	4.11%	-8.98%
MTRX	56 Neutral	$328.52M	―	-20.38%	―	-7.47%	-74.28%
SLND	43 Neutral	$172.22M	―	-50.99%	―	-15.53%	-427.61%
SHIM	34 Underperform	$58.07M	―	-679.42%	―	-24.11%	-4214.51%