Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$443.77M
• Dividend Yield: N/A
• Average Volume (3M): 243.01K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.11
• Revenue Growth: -6.00%
• EPS Growth: -150.20%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 87
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.11
• Shares Outstanding: 184,135,970
• 10 Day Avg. Volume: 169,399
• 30 Day Avg. Volume: 243,013
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.25
• Price to Cash Flow (P/CF): 0.70
• P/FCF Ratio: 0.80
• 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$3.38
• Price Target Upside: 42.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Ensign Energy Services displays strong cash flow management and debt reduction, yet struggles with declining revenue and profitability. The technical indicators suggest a bearish trend, and the valuation metrics are not favorable due to negative earnings. The mixed sentiment from the earnings call reflects operational successes but financial challenges. These factors collectively result in a moderate stock score.

Positive Factors

Cash Flow

The company's free cash flow yield also sits at a very healthy ~40% on both 2024 and 2025 numbers.

Debt Reduction

The company reduced debt by ~$220 million in 2024, surpassing its target, and remains on track for another $200 million reduction this year.

Negative Factors

Stock Price Target

The target price was lowered to $3.50, reflecting some near-term macro uncertainty.

Ensign Energy Services Business Overview & Revenue Model

Company Description

Ensign Energy Services (ESI) is a leading global provider of oilfield services, specializing in drilling, well servicing, and production services. Operating in key energy-producing regions around the world, Ensign offers a comprehensive suite of services designed to optimize the exploration, development, and production of oil and gas resources. The company is committed to delivering innovative and efficient solutions, leveraging advanced technology and a skilled workforce to meet the diverse needs of its clients in the energy sector.

How the Company Makes Money

Ensign Energy Services generates revenue primarily through its diverse range of oilfield services, including drilling, well servicing, and production services. The company's revenue model is centered around long-term contracts with oil and gas exploration and production companies, providing specialized equipment and skilled personnel to support their operations. Key revenue streams include fees for drilling rigs, which vary based on rig type, location, and contract length, as well as additional services such as directional drilling, equipment rentals, and maintenance. Ensign's strategic partnerships with major energy companies and its presence in multiple geographic markets also play a significant role in its earnings, allowing it to leverage global opportunities and mitigate regional market fluctuations.

Ensign Energy Services Financial Statement Overview

Summary

Ensign Energy Services shows strength in cash flow management and a reduction in debt, but faces challenges in revenue growth and profitability. The negative net income and declining revenue are areas of concern. However, the company's ability to generate free cash flow and manage leverage effectively provides a foundation for potential recovery and growth.

Income Statement

The revenue displayed a declining trend from 2023 to 2024, with a revenue decrease of approximately 6%. The company achieved a positive gross profit margin of 9.01% in 2024, down from 13.44% in 2023. Net income turned negative in 2024, resulting in a negative net profit margin of -1.23%. Despite these setbacks, the EBITDA margin remained strong at 25.40%. The company shows potential but faces challenges in maintaining profitability.

Balance Sheet

The debt-to-equity ratio improved to 0.79 in 2024 from 0.94 in 2023, indicating better leverage management. However, stockholders' equity slightly increased, providing a moderate equity ratio of 47.05%. Return on equity was negative at -1.52%, reflecting the net loss. The balance sheet shows stability with a significant reduction in debt, but profitability remains a concern.

Cash Flow

Operating cash flow increased significantly to $471.8M in 2024, which is a positive indicator. Free cash flow grew by 58.95% from the previous year. The operating cash flow to net income ratio is negative due to the net loss, but the company has strong free cash flow generation. Overall, cash flow is a strong area for the company, indicating efficient cash management despite profitability issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.68B	1.79B	1.58B	995.59M	936.82M
	Gross Profit
151.74M	240.87M	141.11M	-36.79M	-96.09M
	EBIT
0.00	180.55M	63.97M	-84.78M	12.08M
	EBITDA
427.77M	481.91M	402.84M	202.14M	374.79M
	Net Income Common Stockholders
-20.75M	41.24M	8.13M	-156.01M	-66.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.11M	20.50M	49.88M	13.30M	44.20M
	Total Assets
2.91B	2.95B	3.18B	2.98B	3.05B
	Total Debt
1.08B	1.23B	1.46B	1.46B	1.40B
	Net Debt
1.05B	1.21B	1.41B	1.45B	1.35B
	Total Liabilities
1.54B	1.64B	1.90B	1.78B	1.69B
	Stockholders Equity
1.37B	1.31B	1.29B	1.19B	1.37B
Cash Flow		Free Cash Flow
293.13M	184.46M	145.57M	113.39M	196.73M
	Operating Cash Flow
471.79M	360.30M	319.96M	178.64M	246.97M
	Investing Cash Flow
-130.79M	-152.63M	-121.46M	-174.59M	-50.24M
	Financing Cash Flow
-334.67M	-366.28M	-162.04M	-35.03M	-180.71M

Ensign Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESI, the sentiment is Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.84, and below the 200-day MA of 2.70, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 83.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ESI.

Ensign Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	77 Outperform	$894.77M	8.51	21.89%	3.95%	0.84%	-1.74%
CEU	70 Outperform	$1.66B	9.01	26.23%	1.68%	8.79%	31.76%
PD	66 Neutral	$918.03M	8.61	6.90%	―	-1.83%	-62.53%
STEP	63 Neutral	C$310.59M	165.77	0.49%	―	0.98%	-96.29%
Sector *	58 Neutral	$9.28B	5.49	-6.28%	7.46%	-0.20%	-73.68%
ESI	53 Neutral	C$443.77M	14.37	-1.55%	―	-6.00%	-150.20%
WRG	48 Neutral	C$76.65M	―	-2.44%	―	-4.44%	0.75%

Ensign Energy Services Corporate Events

Ensign Energy Services to Announce Q4 and Year-end 2024 Results

Ensign Energy Services Inc. has announced its plan to release the fourth quarter and year-end 2024 financial results on March 7, 2025, before the market opens. The company will also hold a conference call and webcast on the same day to discuss these results. This announcement provides stakeholders with an opportunity to gain insights into Ensign’s financial performance and operational strategies, potentially impacting its market positioning and investor relations.

Ensign Energy Secures $25 Million in Debenture Offering

Ensign Energy Services has successfully closed a $25 million private placement of unsecured, subordinated convertible debentures, offering investors a promising 7.50% annual interest rate. The proceeds from this offering will be utilized for general corporate purposes, while major stakeholders, including significant shareholders, actively participated in the transaction.