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Enterprise Group Inc (TSE:E)
TSX:E
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Enterprise (E) AI Stock Analysis

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TSE:E

Enterprise

(TSX:E)

Rating:66Neutral
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 (E) vs. iShares MSCI Canada ETF (EWC)

Enterprise Business Overview & Revenue Model

Company DescriptionEnterprise 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 MoneyEnterprise 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.65M33.50M26.89M18.73M15.52M
Gross Profit15.56M10.50M10.88M6.63M5.19M
EBITDA12.71M12.92M8.27M4.67M2.39M
Net Income4.54M6.17M2.28M-2.38M-4.44M
Balance Sheet
Total Assets118.34M72.81M55.37M51.15M52.25M
Cash, Cash Equivalents and Short-Term Investments30.67M3.79M1.06M876.54K783.62K
Total Debt27.22M25.70M15.51M14.80M13.69M
Total Liabilities36.03M32.01M20.59M18.93M17.24M
Stockholders Equity82.31M40.80M34.79M32.22M35.01M
Cash Flow
Free Cash Flow-4.78M-1.58M341.82K-344.63K2.57M
Operating Cash Flow12.13M13.53M5.91M3.50M3.98M
Investing Cash Flow-15.90M-14.29M-4.35M-2.47M-1.25M
Financing Cash Flow30.65M3.48M-1.37M-937.41K-2.92M

Enterprise Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.67
Price Trends
50DMA
1.72
Negative
100DMA
1.60
Positive
200DMA
1.88
Negative
Market Momentum
MACD
-0.02
Positive
RSI
42.30
Neutral
STOCH
17.36
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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$183.94M5.8016.11%18.29%-94.32%
66
Neutral
C$330.46M151.92-3.90%-5.98%-121.37%
66
Neutral
C$129.48M35.315.16%-8.85%-67.49%
65
Neutral
C$310.92M17.103.00%-5.50%-88.55%
53
Neutral
C$92.61M5.45%355.14%
52
Neutral
C$2.96B-1.54-3.48%6.52%3.05%-49.39%
$8.19M0.43-3.83%674.79%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:E
Enterprise
1.70
0.25
17.24%
TSE:CFW
Calfrac Well Services
3.95
-0.31
-7.28%
TSE:SFD
NXT Energy Solutn
0.85
0.66
347.37%
HGHAF
High Arctic Energy Services
0.62
-1.56
-71.56%
TSE:SHLE
Source Energy Services Ltd
13.37
0.28
2.14%
TSE:STEP
STEP Energy Services
4.52
0.19
4.39%

Enterprise Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Enterprise Group Announces Annual Meeting Results
Positive
Jun 13, 2025

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.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Enterprise Group Reports Q1 2025 Results and Strategic Acquisition
Neutral
May 8, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Enterprise Group Expands with Acquisition of FlexEnergy Canada
Positive
May 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025