Energy Services of America (ESOA) AI Stock Analysis

• Market Cap: $245.08M
• Dividend Yield: 1.11%
• Average Volume (3M): 330.02K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.96
• Revenue Growth: 16.80%
• EPS Growth: -98.32%
• Country: US
• Employees: 1,396
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.16
• Shares Outstanding: 18,399,038
• 10 Day Avg. Volume: 143,527
• 30 Day Avg. Volume: 330,018
• PEG Ratio: -4.61
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -77.70
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: 13.79
• 1Y Price Target: $21.00
• Price Target Upside: 57.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.62
• Revenue Forecast (FY): $419.50M

• Rating: 59 Neutral
• Price Target: $14.00 ▲(5.11% Upside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is driven primarily by fundamentals: strong revenue growth and decent current cash generation are offset by sharply compressed profitability, low ROE, and higher leverage. Technicals are mixed (longer-term trend supported but near-term below the 20-day average), while valuation is reasonable and recent corporate actions modestly improve financial flexibility despite dilution.

Positive Factors

Revenue Growth

Sustained top-line growth to $424.5M (TTM) reflects expanding project scale and market penetration across utility and energy infrastructure. Larger revenue base supports higher fixed-cost absorption, improves bidding leverage on contracts, and underpins longer-term capacity to pursue larger/more profitable projects.

Free Cash Flow Generation

Positive free cash flow demonstrates the company's ability to convert operations into liquidity, enabling reinvestment, dividends, and debt servicing. Consistent FCF provides durable funding for working capital demands typical in construction cycles and supports opportunistic M&A or capital expenditures.

Improved Liquidity via Capital Actions

The recent registered offering and overallotment materially bolster liquidity and financial flexibility. Incremental capital reduces short-term funding pressure, supports working-capital heavy project execution, and creates headroom for selective acquisitions or balance-sheet repair without relying solely on operational cash.

Negative Factors

Compressed Profitability

Very thin margins leave the business exposed to cost inflation, contract mix shifts, and execution overruns. Low operating profitability constrains internal funding for growth, reduces buffer for cyclical downturns, and makes consistent shareholder returns and ROE recovery contingent on margin improvement or higher-margin contract wins.

Elevated Leverage

Rising leverage materially increases financial risk in a project-based business with variable cash flows. Higher debt levels amplify interest and refinancing risk, limit strategic flexibility for bidding and acquisitions, and make the company more sensitive to revenue volatility or prolonged margin pressure.

Volatile Cash Flow and Earnings Quality

Inconsistent free cash flow and an unstable relation between cash and accounting earnings complicate forecasting and capital allocation. Volatility undermines predictability for debt servicing, dividend sustainability and M&A integration, increasing the need for larger liquidity buffers or restrictive covenant headroom.

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

ESOA primarily makes money by performing contracted construction and maintenance work for customers in the utility and energy sectors. Revenue is generated when ESOA (through its subsidiaries) is awarded projects—typically by utilities, midstream/pipeline operators, and other infrastructure owners—and then bills for labor, equipment usage, materials (in some cases), and project execution under the commercial terms of those contracts (e.g., unit-price work, time-and-materials, or fixed-price arrangements). Key revenue streams come from: (1) natural gas and petroleum infrastructure services, including pipeline and related midstream/utility work such as installation, replacement, integrity-related work, and maintenance; (2) water and wastewater utility infrastructure services, including installation/replacement and related civil work; and (3) electrical/power utility services where applicable, including construction and maintenance activity for power-related infrastructure. Profitability depends on the spread between contract revenue and the company’s direct job costs (crew labor, subcontractors, fuel, equipment ownership/maintenance, materials, and restoration), plus its ability to keep crews utilized and execute projects efficiently and safely. Significant factors affecting earnings include project backlog and award timing, weather and seasonality, customer capital spending cycles, energy and utility infrastructure demand, and the company’s ability to manage cost overruns, change orders, and productivity on fixed-price or unit-price contracts. Specific information on named partnerships or customer concentration is null.

Energy Services of America Financial Statement Overview

Summary

Revenue growth is strong, and TTM operating/free cash flow is solid. However, profitability has compressed sharply versus FY2024 (very thin net/EBIT margins), ROE is very low, and leverage has risen (debt-to-equity ~1.32), making earnings quality and sustainability a key risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (424.5M; ~3.28x growth rate shown), but profitability is very thin: gross margin is ~9.4% and net margin is ~0.1%, with EBIT margin near ~1.0%. Results also show a sharp year-over-year deterioration versus FY2024, when margins and net income were substantially higher (net margin ~7.1%). Strength is top-line scale and growth; weakness is the heavy compression in margins and earnings consistency.

Balance Sheet

Leverage is moderate-to-elevated: debt-to-equity is ~1.32 in TTM (Trailing-Twelve-Months) and FY2025, higher than FY2024 (~0.62). Equity has grown modestly (to ~60.6M TTM), supporting the balance sheet, but return on equity is currently very low (~0.7% TTM) reflecting weak recent profitability. Strength is a growing equity base; key risk is higher leverage compared with prior years alongside reduced returns.

Cash Flow

Cash generation looks better than accounting earnings in TTM (Trailing-Twelve-Months): operating cash flow is ~14.0M and free cash flow is ~16.7M, with very strong free-cash-flow growth (as reported). However, cash flow has been volatile across years (e.g., negative free cash flow in FY2021 and a decline in FY2025 vs FY2024), and the relationship between cash flow and net income is inconsistent (free cash flow is below net income in TTM but above it in FY2025). Strength is current free cash flow; weakness is variability and limited predictability.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	424.47M	411.00M	351.88M	304.10M	197.59M	122.47M
Gross Profit	42.51M	38.78M	49.95M	36.81M	22.37M	12.92M
EBITDA	21.20M	17.10M	44.69M	20.59M	13.01M	4.68M
Net Income	2.23M	379.71K	25.11M	7.40M	3.75M	-887.52K
Balance Sheet
Total Assets	200.99M	215.21M	158.25M	142.51M	112.63M	70.17M
Cash, Cash Equivalents and Short-Term Investments	16.68M	12.24M	12.93M	16.43M	7.43M	8.23M
Total Debt	63.96M	74.25M	36.39M	48.18M	42.32M	27.45M
Total Liabilities	140.39M	155.97M	99.55M	107.92M	84.39M	45.52M
Stockholders Equity	60.60M	59.24M	58.69M	34.59M	28.24M	24.65M
Cash Flow
Free Cash Flow	8.57M	-2.22M	9.92M	10.25M	2.98M	-5.25M
Operating Cash Flow	14.05M	4.14M	18.68M	21.07M	8.28M	798.94K
Investing Cash Flow	-8.14M	-29.43M	-8.00M	-10.18M	-8.28M	-8.69M
Financing Cash Flow	-9.58M	24.61M	-14.19M	-1.89M	-805.41K	4.90M

Energy Services of America Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESOA, the sentiment is Positive. The current price of 13.32 is below the 20-day moving average (MA) of 14.04, above the 50-day MA of 11.77, and above the 200-day MA of 10.33, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESOA.

Energy Services of America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	76 Outperform	$1.13B	11.94	14.83%	―	12.53%	35.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BWMN	60 Neutral	$463.36M	44.33	4.94%	―	16.73%	―
ESOA	59 Neutral	$245.08M	12.61	3.91%	1.11%	16.80%	-98.32%
MTRX	58 Neutral	$284.66M	-92.28	-13.58%	―	17.16%	24.10%
ORN	55 Neutral	$416.47M	158.32	1.60%	―	7.02%	―
SLND	42 Neutral	$49.72M	-0.77	-84.16%	―	-9.10%	21.10%

Energy Services of America Corporate Events

Energy Services of America Declares Quarterly Cash Dividend

On March 20, 2026, Energy Services of America Corporation declared a quarterly cash dividend of $0.03 per common share. The dividend is payable on April 15, 2026 to shareholders of record as of the close of business on March 31, 2026.

The announcement underscores the company’s ongoing practice of returning capital to shareholders through regular dividend payments. This dividend declaration may signal management’s confidence in the company’s financial position and cash flow generation for investors and other stakeholders.

The most recent analyst rating on (ESOA) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Energy Services of America stock, see the ESOA Stock Forecast page.

Energy Services Raises Capital Through Overallotment Share Sale

On February 24, 2026, Energy Services of America announced that the underwriter of its recent public offering exercised its overallotment option, resulting in the sale of an additional 261,000 shares of common stock at $11.50 per share. After underwriting discounts and commissions but before other expenses, the transaction generated approximately $2.8 million in proceeds for the company, with Lake Street Capital Markets acting as sole underwriter and Roth Capital Partners serving as financial advisor, modestly strengthening the company’s capital position for its multi-industry service operations.

The most recent analyst rating on (ESOA) stock is a Buy with a $15.50 price target. To see the full list of analyst forecasts on Energy Services of America stock, see the ESOA Stock Forecast page.

Energy Services of America Updates Investor Relations Materials

Energy Services of America Corporation, an energy infrastructure services provider, announced that on February 20, 2026, it updated its investor relations slide deck. The updated materials are now available on the company’s website, reflecting its latest disclosed information for shareholders and market participants.

The filing, signed on February 20, 2026, by Chief Financial Officer Charles Crimmel, formally records the update under Securities Exchange Act reporting requirements. This action underscores the company’s effort to maintain regulatory compliance and transparency in communicating with investors and other stakeholders.

The most recent analyst rating on (ESOA) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Energy Services of America stock, see the ESOA Stock Forecast page.

Energy Services Shareholders Endorse Leadership and Governance Slate

On February 18, 2026, Energy Services of America Corporation held its Annual Meeting of Stockholders, where investors voted on the election of directors and an advisory, non-binding resolution on executive compensation. Stockholders re-elected the company’s slate of directors with varying levels of support, and a majority approved the advisory proposal on executive pay, signaling overall shareholder backing of current leadership and compensation practices.

At the same meeting, shareholders overwhelmingly ratified the appointment of Urish Popeck & Co., LLC as the independent registered public accounting firm for the fiscal year ending September 30, 2026. The strong vote in favor of the auditor ratification and executive compensation, combined with the re-election of directors, suggests continuity in corporate governance and financial oversight for the coming year, with no evident signs of significant shareholder dissent.

The most recent analyst rating on (ESOA) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Energy Services of America stock, see the ESOA Stock Forecast page.

Energy Services of America Announces Public Stock Offering

On February 18, 2026, Energy Services of America entered into an underwriting agreement with Lake Street Capital Markets to sell 1,740,000 shares of common stock in a registered public offering, with a 30-day option for the underwriter to purchase up to an additional 261,000 shares. The offering, expected to close on February 20, 2026, is estimated to generate net proceeds of about $18.4 million after fees and expenses.

The company announced the launch of the offering on February 18, 2026, and the pricing on February 19, 2026, with Lake Street serving as sole underwriter. Energy Services of America plans to use the proceeds for general corporate purposes, working capital and potential acquisitions, a move that could strengthen its balance sheet and support expansion opportunities in its core energy and infrastructure markets.

The most recent analyst rating on (ESOA) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Energy Services of America stock, see the ESOA Stock Forecast page.