Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$458.11M
• Dividend Yield: N/A
• Average Volume (3M): 120.50K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.35
• Revenue Growth: -1.65%
• EPS Growth: -279.49%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.14
• Shares Outstanding: 184,720,180
• 10 Day Avg. Volume: 184,285
• 30 Day Avg. Volume: 120,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$2.50
• Price Target Upside: 3.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: C$2.00 ▼(-17.36% Downside)

Ensign Energy Services' overall stock score reflects a mixed financial performance with operational efficiency but challenges in profitability. Technical analysis shows a neutral trend, while valuation is hindered by a negative P/E ratio. The earnings call highlights both strategic progress and ongoing challenges, contributing to a balanced outlook.

Positive Factors

Debt Reduction

The company's focus on reducing debt enhances financial stability and flexibility, positioning it better for future investments and growth.

Market Share Growth

Increasing market share in a declining industry indicates competitive strength and resilience, supporting long-term revenue potential.

Technology Solutions Expansion

Growth in technology solutions enhances operational efficiency and client value, potentially leading to increased demand and profitability.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining sales momentum, which could impact profitability and cash flow if not addressed.

Adjusted EBITDA Decrease

A significant drop in EBITDA indicates reduced operational efficiency, which may affect the company's ability to invest in growth initiatives.

International Challenges

Reduced international operations can limit global market presence and revenue diversification, posing risks to long-term growth.

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 oilfield services. The company's key revenue streams include contract drilling, where it provides rigs and crews for drilling oil and gas wells, and well servicing, which involves maintenance and workover services for existing wells. Additionally, Ensign earns income from the rental of oilfield equipment. Significant factors contributing to Ensign's earnings include its extensive fleet of drilling rigs, technological innovations, and strategic partnerships with major oil and gas producers. The company also benefits from long-term contracts that provide stable cash flow and mitigate the impact of volatile oil prices.

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 stable capital structure is overshadowed by negative return on equity, indicating 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	1.67B	1.68B	1.79B	1.58B	995.59M	936.82M
Gross Profit	121.22M	151.74M	240.87M	141.11M	-36.79M	-96.09M
EBITDA	389.10M	429.44M	481.91M	402.84M	202.14M	374.79M
Net Income	-37.66M	-20.75M	41.24M	8.13M	-156.01M	-66.74M
Balance Sheet
Total Assets	2.70B	2.91B	2.95B	3.18B	2.98B	3.05B
Cash, Cash Equivalents and Short-Term Investments	14.97M	28.11M	20.50M	49.88M	13.30M	44.20M
Total Debt	997.68M	1.08B	1.23B	1.46B	1.46B	1.40B
Total Liabilities	1.39B	1.54B	1.64B	1.90B	1.78B	1.69B
Stockholders Equity	1.30B	1.37B	1.31B	1.29B	1.19B	1.37B
Cash Flow
Free Cash Flow	224.98M	293.13M	184.46M	145.57M	113.39M	196.73M
Operating Cash Flow	389.72M	471.79M	360.30M	319.96M	178.64M	246.97M
Investing Cash Flow	-145.59M	-130.79M	-152.63M	-121.46M	-174.59M	-50.24M
Financing Cash Flow	-254.51M	-334.67M	-366.28M	-162.04M	-35.03M	-180.71M

Ensign Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.42
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.42 is above the 20-day moving average (MA) of 2.28, above the 50-day MA of 2.22, and below the 200-day MA of 2.43, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESI.

Ensign Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	79 Outperform	532.13M	8.27	11.34%	2.66%	14.74%	62.76%
PD	72 Outperform	1.11B	10.73	6.31%	―	-3.26%	-52.16%
ACX	70 Neutral	160.80M	4.44	16.38%	―	-10.64%	55.18%
ESI	53 Neutral	C$458.11M	14.37	-2.86%	―	-1.65%	-279.49%
CFW	52 Neutral	294.60M	30.05	1.50%	―	-4.63%	-92.13%
WRG	49 Neutral	77.16M	-12.62	-2.02%	―	5.00%	22.76%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Ensign Energy Services Corporate Events

Ensign Energy Services Reports Decline in Q2 2025 Financials Amid Debt Reduction Efforts

Ensign Energy Services reported a decrease in revenue and adjusted EBITDA for the second quarter of 2025 compared to the same period in 2024. The company experienced a net loss attributable to common shareholders, with significant reductions in funds flow from operations and interest expenses due to lower debt levels. Despite these challenges, Ensign is on track to meet its debt reduction target by the end of 2025, having already repaid a substantial amount of debt. The operating highlights indicate a mixed performance across different regions, with a slight increase in Canadian and U.S. drilling days but a notable decrease in international drilling and U.S. well servicing hours.

The most recent analyst rating on (TSE:ESI) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.