Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$441.64M
• Dividend Yield: N/A
• Average Volume (3M): 164.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: -2.47%
• EPS Growth: -246.73%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.02
• Shares Outstanding: 184,788,380
• 10 Day Avg. Volume: 151,251
• 30 Day Avg. Volume: 164,913
• PEG Ratio: 0.18
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 1.87
• 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: 25.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$3.00 ▲(25.52% Upside)

Ensign Energy Services' overall score is driven by mixed financial performance and valuation concerns, offset by positive technical indicators and strategic initiatives highlighted in the earnings call. The company's focus on debt reduction and securing long-term contracts provides a cautiously optimistic outlook, but challenges in profitability and revenue growth remain significant.

Positive Factors

Market Share Growth

Market share growth in key regions indicates strong competitive positioning and potential for sustained revenue streams.

Debt Reduction Strategy

Effective debt reduction enhances financial flexibility and reduces interest burden, supporting long-term financial health.

Long-term Contracts

Securing long-term contracts ensures stable future cash flows and strengthens the company's revenue visibility.

Negative Factors

Decreased Revenue and EBITDA

Declining revenue and EBITDA highlight operational challenges and may impact profitability and cash flow generation.

International Operating Decline

Reduced international operations can limit growth opportunities and affect global market presence.

Challenges in U.S. Market

Struggles in the U.S. market could hinder revenue growth and affect competitive positioning in a key region.

Ensign Energy Services Business Overview & Revenue Model

Company Description

Ensign Energy Services Inc. is a leading provider of oilfield services in the energy sector, primarily operating in Canada and the United States. The company specializes in drilling, completions, and production services, offering a wide range of core products and services, including contract drilling, directional drilling, and well servicing. Ensign is committed to delivering innovative and efficient solutions to its clients, ensuring safety, sustainability, and operational excellence in their projects.

How the Company Makes Money

Ensign Energy Services generates revenue primarily through its various service offerings in the oil and gas industry. The main revenue streams include contract drilling services, which involve providing drilling rigs and crews to oil and gas companies on a contractual basis, and completions services that assist in the final stages of well preparation. Additionally, the company earns income from its well servicing operations, which involve maintenance and repair of existing wells. Ensign's revenue is also bolstered by strategic partnerships with major oil and gas operators, allowing them to secure long-term contracts and increase their market presence. Factors such as global oil prices, demand for energy, and technological advancements in drilling techniques significantly influence their earnings and financial performance.

Ensign Energy Services Financial Statement Overview

Summary

Ensign Energy Services shows mixed financial performance. While operational efficiency and strong cash flow generation are evident, challenges in consistent profitability and revenue growth persist. The balance sheet is stable, but negative return on equity highlights difficulties in delivering shareholder value.

Income Statement

Ensign Energy Services has faced challenges in maintaining profitability, as evidenced by negative net profit margins in recent periods, particularly in the TTM (Trailing-Twelve-Months) where the net profit margin was -2.26%. Revenue growth has been inconsistent, with a decline of 1.15% in the TTM. However, the company has managed to maintain positive EBITDA margins, indicating some operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.77 in the TTM, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio suggests a stable capital structure, with equity making up a significant portion of total assets.

Cash Flow

Ensign Energy Services has demonstrated strong cash flow management, with a significant free cash flow growth of 171.3% in the TTM. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests room for improvement in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.68B	1.79B	1.58B	995.59M	936.82M
Gross Profit	103.80M	151.74M	240.87M	141.11M	-36.79M	-96.09M
EBITDA	366.56M	429.44M	481.91M	402.84M	202.14M	374.79M
Net Income	-46.19M	-20.75M	41.24M	8.13M	-156.01M	-66.74M
Balance Sheet
Total Assets	2.75B	2.91B	2.95B	3.18B	2.98B	3.05B
Cash, Cash Equivalents and Short-Term Investments	16.73M	28.11M	20.50M	49.88M	13.30M	44.20M
Total Debt	977.53M	1.08B	1.23B	1.46B	1.46B	1.40B
Total Liabilities	1.44B	1.54B	1.64B	1.90B	1.78B	1.69B
Stockholders Equity	1.31B	1.37B	1.31B	1.29B	1.19B	1.37B
Cash Flow
Free Cash Flow	218.77M	293.13M	184.46M	145.57M	113.39M	196.73M
Operating Cash Flow	410.56M	471.79M	360.30M	319.96M	178.64M	246.97M
Investing Cash Flow	-154.43M	-130.79M	-152.63M	-121.46M	-174.59M	-50.24M
Financing Cash Flow	-264.14M	-334.67M	-366.28M	-162.04M	-35.03M	-180.71M

Ensign Energy Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2.39 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.55, and above the 200-day MA of 2.29, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ESI.

Ensign Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKT.A	73 Outperform	C$77.66M	3.53	12.87%	―	24.94%	956.65%
ACX	72 Outperform	C$180.47M	6.36	11.51%	―	-16.20%	-38.85%
PHX	72 Outperform	C$348.35M	6.80	23.65%	10.44%	8.98%	-27.41%
PD	71 Outperform	C$1.22B	22.02	3.43%	―	-5.55%	-74.96%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ESI	56 Neutral	C$441.64M	-9.91	-3.50%	―	-2.47%	-246.73%
WRG	54 Neutral	C$70.39M	-10.12	-2.38%	―	-0.38%	6.98%

Ensign Energy Services Corporate Events

Ensign Energy Services Reports Decline in Q3 2025 Earnings Amid Debt Reduction Efforts

Ensign Energy Services Inc. reported a decrease in revenue and adjusted EBITDA for the third quarter of 2025 compared to the same period in 2024, with revenue dropping by 5% and adjusted EBITDA by 17%. The company also recorded a net loss attributable to common shareholders, contrasting with a net income in the previous year. Despite these declines, Ensign has made progress in reducing its debt, with a $98.5 million decrease in total debt, net of cash, during the first nine months of 2025. The company has amended its credit agreement, extending the maturity date of its $950 million credit facility to 2028, and expects to achieve its debt reduction target by the first half of 2026, subject to industry conditions.

Ensign Energy Services Expands Credit Facility to Bolster Financial Flexibility

Ensign Energy Services Inc. has successfully renewed and expanded its Credit Facility to $950 million, maturing in 2028, enhancing its financial flexibility and supporting its global operations. This strategic move is expected to streamline Ensign’s capital structure, providing increased liquidity and positioning the company to capitalize on emerging opportunities in its core markets.