Enterprise (E) AI Stock Analysis

• Market Cap: C$129.48M
• Dividend Yield: N/A
• Average Volume (3M): 131.40K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.13
• Revenue Growth: -8.85%
• EPS Growth: -67.49%
• Country: CA
• Employees: 90
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.04
• Shares Outstanding: 77,531,190
• 10 Day Avg. Volume: 124,769
• 30 Day Avg. Volume: 131,395
• PEG Ratio: -0.83
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.05
• 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: C$2.48
• Price Target Upside: 48.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: C$2.00 ▲(19.76%Upside)

The company's financial performance is a key strength, driven by revenue growth and a strong equity base. Despite this, declining EBIT margin and negative free cash flow pose risks. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio. Positive corporate events, particularly the strategic acquisition, are a notable strength.

Enterprise Business Overview & Revenue Model

Company Description

Enterprise Group, Inc., through its subsidiaries, operates as an equipment rental and construction services company operating in the energy and construction industries. The company primarily focuses on the specialty equipment rental business. It provides flameless heaters to the construction, oil and gas development, and plant shut-down activities in Western Canada. The company also offers oilfield infrastructure site and rental services covering modular/combo equipment, including fuel, generator, light stand, sewage treatment, medic security, and truck trailer combos. In addition, it provides infrastructure site services and rentals for a variety of oil and gas customers servicing the Fort St. John area. The company was formerly known as Enterprise Oilfield Group, Inc. and changed its name to Enterprise Group, Inc. in July 2012. Enterprise Group, Inc. was incorporated in 2004 and is headquartered in St. Albert, Canada.

How the Company Makes Money

Enterprise Holdings generates revenue through multiple streams. The primary source of income is its car rental services, which cater to both personal and business travelers. The company also earns from its fleet management operations, providing businesses with vehicle leasing and management solutions. Additionally, Enterprise Holdings has a car sales division, which sells used vehicles from its rental fleet. Strategic partnerships with travel agencies, airlines, and corporate clients further enhance its revenue potential, while a strong focus on customer service and a widespread network of rental locations contribute to its financial success.

Enterprise Financial Statement Overview

Summary

Enterprise demonstrates strong revenue growth and a solid equity base, positioning it well in the industry. However, declining EBIT margin and negative free cash flow could impact future profitability and liquidity.

Income Statement

Enterprise has shown a consistent revenue growth trajectory over the years, with a notable revenue growth rate of 21.82% from 2020 to 2021 and 43.56% from 2021 to 2022. The company has improved its gross profit margin to 37.22% in TTM, reflecting operational efficiency. However, the declining EBIT margin from 9.94% in 2023 to 8.60% in TTM indicates pressure on operating profitability. The net profit margin of 10.81% in TTM is robust, though slightly below the 2024 margin.

Balance Sheet

The company's balance sheet indicates a strong equity position with an equity ratio of 81.87% in TTM, suggesting financial stability. However, the debt-to-equity ratio of 0.12 in TTM, while low, has increased from 0.11 in 2024, indicating a slight uptick in leverage. Additionally, the return on equity has decreased to 4.12% in TTM, down from 5.52% in 2024, suggesting reduced efficiency in generating returns on equity capital.

Cash Flow

Cash flow analysis shows a mixed picture. The operating cash flow to net income ratio of 3.07 in TTM is strong, indicating healthy cash generation relative to net income. However, the free cash flow is negative, reflecting significant capital expenditures that could strain liquidity. The free cash flow to net income ratio is negative, which is a concern for cash flow sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.65M	33.50M	26.89M	18.73M	15.52M
Gross Profit	15.56M	10.50M	10.88M	6.63M	5.19M
EBITDA	12.71M	12.92M	8.27M	4.67M	2.39M
Net Income	4.54M	6.17M	2.28M	-2.38M	-4.44M
Balance Sheet
Total Assets	118.34M	72.81M	55.37M	51.15M	52.25M
Cash, Cash Equivalents and Short-Term Investments	30.67M	3.79M	1.06M	876.54K	783.62K
Total Debt	27.22M	25.70M	15.51M	14.80M	13.69M
Total Liabilities	36.03M	32.01M	20.59M	18.93M	17.24M
Stockholders Equity	82.31M	40.80M	34.79M	32.22M	35.01M
Cash Flow
Free Cash Flow	-4.78M	-1.58M	341.82K	-344.63K	2.57M
Operating Cash Flow	12.13M	13.53M	5.91M	3.50M	3.98M
Investing Cash Flow	-15.90M	-14.29M	-4.35M	-2.47M	-1.25M
Financing Cash Flow	30.65M	3.48M	-1.37M	-937.41K	-2.92M

Enterprise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:E, the sentiment is Negative. The current price of 1.67 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.72, and below the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 17.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:E.

Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLE	74 Outperform	C$183.94M	5.80	16.11%	―	18.29%	-94.32%
STEP	66 Neutral	C$330.46M	151.92	-3.90%	―	-5.98%	-121.37%
E	66 Neutral	C$129.48M	35.31	5.16%	―	-8.85%	-67.49%
CFW	65 Neutral	C$310.92M	17.10	3.00%	―	-5.50%	-88.55%
SFD	53 Neutral	C$92.61M	―	5.45%	―	355.14%	―
Sector *	52 Neutral	C$2.96B	-1.54	-3.48%	6.52%	3.05%	-49.39%
HGHAF	―	$8.19M	0.43	-3.83%	674.79%	―	―

Enterprise Corporate Events

Enterprise Group Announces Annual Meeting Results

Enterprise Group, Inc. announced the results of its annual meeting, highlighting the election of directors and the appointment of auditors. The company successfully elected its board members and appointed Doane Grant Thornton LLP as auditors. Additionally, a resolution to approve the unallocated entitlements under the company’s Stock Option Plan was passed with significant support. These developments reinforce Enterprise Group’s strategic direction and commitment to its stakeholders in the energy and resource sector.

The most recent analyst rating on (TSE:E) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Enterprise stock, see the TSE:E Stock Forecast page.

Enterprise Group Reports Q1 2025 Results and Strategic Acquisition

Enterprise Group reported a decline in revenue, gross margin, and adjusted EBITDA for Q1 2025 compared to the same period in 2024, primarily due to the completion of a natural gas infrastructure project. Despite this, the company is expanding its market position by acquiring FlexEnergy Canada, becoming the exclusive supplier of FlexEnergy turbines in Canada, and securing a new lending facility with The Bank of Montreal to support future growth. These strategic moves are expected to enhance Enterprise’s market leadership in providing efficient natural gas to electric power solutions and generate recurring revenue streams through long-term leasing and maintenance contracts.

Enterprise Group Expands with Acquisition of FlexEnergy Canada

Enterprise Group, Inc. has signed an agreement to acquire FlexEnergy Canada’s operations for Cdn$20 million, aiming to become the exclusive supplier of FlexEnergy turbines in Canada. This acquisition enhances Enterprise’s ability to provide efficient and environmentally responsible energy solutions, addressing the growing demand for natural gas power solutions amid North America’s power grid challenges. The deal includes 17 turbine generators, long-term lease contracts, and a team of specialists, positioning Enterprise to expand its natural gas-to-electricity strategy and capitalize on opportunities across various industrial sectors.