Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$340.65M
• Dividend Yield: N/A
• Average Volume (3M): 194.78K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.28
• Revenue Growth: -6.00%
• EPS Growth: -150.20%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.11
• Shares Outstanding: 184,135,970
• 10 Day Avg. Volume: 121,469
• 30 Day Avg. Volume: 194,777
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$3.00
• Price Target Upside: 62.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Ensign Energy Services demonstrates strong cash flow management and strategic debt reduction, which are significant strengths. However, challenges such as declining revenue, negative profitability, and bearish technical indicators weigh on the stock. The valuation is unattractive due to the negative P/E and lack of dividends. The earnings call highlights strategic achievements but also underscores ongoing challenges, leading to an overall cautious outlook.

Positive Factors

Debt Reduction

The company reduced debt by approximately $220 million, surpassing its target, and remains on track for another $200 million reduction.

Fleet Utilization

Ensign highlighted continued strength in Canada, with high-spec singles and triples largely booked through 2025 and a significant portion of its fleet contracted into 2026.

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 Inc., together with its subsidiaries, provides oilfield services to the crude oil and natural gas industries in Canada, the United States, and internationally. The company offers shallow, intermediate, and deep well drilling, as well as specialized drilling services, including horizontal, underbalanced, horizontal re-entry, and slant drilling for steam assisted gravity drainage applications; and equipment and services. It also provides coring and oil sands drilling services to the mining, and oil and natural gas industries; directional drilling and related services for conventional and horizontal drilling applications; shallow to deep well services, such as completions, abandonments, production workovers, and bottom hole pump changes for oil and natural gas producers; and interactive pressure drilling services with self-contained systems comprising nitrogen generation and compression equipment, and surface control systems. In addition, the company rents drill strings, loaders, tanks, pumps, rig mattings, blow-out preventers, waste bins, and wastewater treatment equipment for the drilling and completions segments of the oilfield industry. Further, the company offers transportation services. As of December 31, 2021, it operated a fleet of 262 land drilling rigs, 21 specialty coring rigs, and 100 well servicing rigs. The company was incorporated in 1987 and is headquartered in Calgary, Canada.

How the Company Makes Money

Ensign Energy Services generates revenue primarily through its comprehensive suite of services offered to the oil and gas industry. Key revenue streams include drilling services, which involve the provision of rigs and personnel for the exploration and extraction of oil and gas, and well servicing, which encompasses maintenance, workovers, and abandonment services. The company also earns income from production services, assisting clients in optimizing the efficiency and productivity of their oil and gas production. Ensign's earnings are supported by strategic partnerships with major oil and gas companies, as well as long-term contracts that ensure steady income streams.

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: 1.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.85 is below the 20-day moving average (MA) of 1.94, below the 50-day MA of 2.28, and below the 200-day MA of 2.67, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 34.53 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, 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
STEP	59 Neutral	C$274.56M	146.54	0.49%	―	0.98%	-96.29%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%
ESI	53 Neutral	C$340.65M	14.37	-1.55%	―	-6.00%	-150.20%
WRG	50 Neutral	C$69.38M	―	-2.16%	―	6.43%	35.87%

Ensign Energy Services Corporate Events

Ensign Energy Services to Announce Q1 2025 Financial Results

Ensign Energy Services Inc. announced it will release its first quarter 2025 financial results on May 12, 2025, before the market opens. A conference call and webcast will follow on the same day to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the competitive oilfield services industry.

Spark’s Take on TSE:ESI Stock

According to Spark, TipRanks’ AI Analyst, TSE:ESI is a Neutral.

Ensign Energy Services’ overall stock score is influenced by its solid cash flow management and debt reduction efforts, which provide a basis for potential future growth. However, the company’s declining revenue, net losses, and unfavorable technical indicators suggest caution. The mixed results from the earnings call reflect operational strengths but also highlight financial challenges, particularly in the U.S. market. As a result, the stock is rated moderately low, with significant risks related to profitability and market pressures.

To see Spark’s full report on TSE:ESI stock, click here.

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.