Energy Services of America (ESOA) AI Stock Analysis

• Market Cap: $262.00M
• Dividend Yield: 1.11%
• Average Volume (3M): 298.37K
• Price to Earnings (P/E): 105.8
• Beta (1Y): 0.87
• 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: 490,244
• 30 Day Avg. Volume: 298,372
• 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: 1.18
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 14.55
• 1Y Price Target: $21.00
• Price Target Upside: 34.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $419.50M

• Rating: 58 Neutral
• Price Target: $14.00 ▼(-10.66% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by sharply compressed profitability and higher leverage despite strong revenue growth and solid current free cash flow. Technicals are a meaningful positive with a strong uptrend, but valuation is a key headwind due to the very high P/E, and recent financing events are mixed (balance-sheet support vs dilution).

Positive Factors

Strong revenue growth and diversified contract base

Sustained top-line growth (~17% revenue growth) plus diversified service lines and long-term utility contracts underpin predictable backlog and market presence. This supports steady revenue visibility and commercial scale across the natural gas and electric utility sectors over coming quarters.

Consistent free cash flow generation

Operating and free cash flow are currently positive and materially better than accounting earnings, providing internal funding for operations, maintenance and targeted investments. Reliable FCF supports working capital needs and potential acquisitions without sole reliance on external financing.

Improved liquidity from recent equity raise

The recent registered offering and subsequent overallotment generated meaningful net proceeds (~$18.4M + ~$2.8M), materially strengthening liquidity. Enhanced capital resources reduce near-term refinancing risk and support working capital and selective M&A or growth investments.

Negative Factors

Severely compressed profitability and thin margins

Margins have collapsed from prior-year levels to near-breakeven, leaving minimal buffer to absorb cost inflation, project overruns, or pricing pressures. Persistently thin EBIT and net margins constrain retained earnings and limit capacity to rebuild returns absent margin recovery or higher-margin wins.

Rising leverage and very low returns on equity

Debt has roughly doubled relative to equity versus the prior year, increasing fixed interest obligations and financial sensitivity to cyclical revenue swings. Extremely low ROE signals limited profitability on invested capital, restricting ability to organically deleverage or fund growth through retained earnings.

Equity offering introduces dilution risk

While proceeds bolster liquidity, issuing new shares dilutes existing equity and can pressure per-share metrics and shareholder returns over time unless capital is deployed into high-return projects. Dilution is a structural consideration for EPS recovery and long-term investor returns.

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 generates revenue through multiple streams including construction contracts for pipeline and utility projects, maintenance services for energy facilities, and service agreements with utility companies. The company typically engages in long-term contracts with public and private sector clients, which provide a stable income base. Additionally, ESOA may benefit from partnerships with major energy firms and government agencies that require specialized services, enhancing its market presence and revenue potential. The company's ability to secure new contracts and maintain existing client relationships is crucial to its financial success.

Energy Services of America Financial Statement Overview

Summary

Revenue growth is strong, and current free cash flow is solid (TTM operating cash flow ~14.0M; free cash flow ~16.7M). However, profitability has compressed sharply versus FY2024 (TTM net margin ~0.1%, EBIT margin ~1.0%), and leverage has risen (debt-to-equity ~1.32) with very low ROE (~0.7%), limiting the score.

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: 15.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 15.67 is above the 20-day moving average (MA) of 11.89, above the 50-day MA of 9.82, and above the 200-day MA of 9.97, indicating a bullish trend. The MACD of 1.53 indicates Negative momentum. The RSI at 79.04 is Negative, neither overbought nor oversold. The STOCH value of 74.64 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	73 Outperform	$1.13B	15.57	15.21%	―	12.53%	35.68%
ORN	65 Neutral	$550.63M	58.27	6.31%	―	7.02%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	58 Neutral	$262.00M	105.79	3.67%	1.11%	16.80%	-98.32%
MTRX	58 Neutral	$310.82M	-16.44	-16.33%	―	17.16%	24.10%
BWMN	57 Neutral	$563.24M	34.76	6.31%	―	16.73%	―
SLND	42 Neutral	$68.72M	-0.71	-84.16%	―	-9.10%	21.10%

Energy Services of America Corporate Events

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.

Energy Services of America Declares Quarterly Cash Dividend

On December 17, 2025, Energy Services of America Corporation declared a quarterly cash dividend of $0.03 per common share, payable on January 15, 2026, to shareholders of record as of the close of business on December 31, 2025. The move underscores the company’s continued commitment to returning capital to shareholders and provides income visibility for investors heading into 2026.

The most recent analyst rating on (ESOA) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Energy Services of America stock, see the ESOA Stock Forecast page.