Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$452.52M
• Dividend Yield: N/A
• Average Volume (3M): 152.93K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.28
• Revenue Growth: -2.85%
• EPS Growth: -144.20%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 73
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.02
• Shares Outstanding: 184,700,180
• 10 Day Avg. Volume: 160,079
• 30 Day Avg. Volume: 152,925
• PEG Ratio: 0.18
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• 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$2.75
• Price Target Upside: 12.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: C$2.50 ▲(2.04%Upside)

The overall score of 58 reflects a challenging financial outlook due to negative profitability and overvaluation concerns. However, strong cash flow management, debt reduction, and positive market momentum provide some optimism for potential recovery. Mixed signals from the earnings call further balance the overall assessment.

Positive Factors

Cash Flow

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

Debt Reduction

The company reduced debt by approximately $220 million in 2024, 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

Target Price

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. is a leading global provider of oilfield services, with operations across North America and internationally. The company specializes in drilling, well servicing, and production services for the energy sector. Ensign is known for its advanced technology and innovative approaches to efficient and safe energy extraction and management.

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 demonstrates strong cash flow management and debt reduction, but faces challenges in revenue growth and profitability. The company has a negative net income and declining revenue, but its ability to generate free cash flow and manage leverage effectively provides a foundation for potential recovery.

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
82.54M	180.55M	63.97M	-84.78M	12.08M
	EBITDA
429.44M	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: Positive
• Last Price: 2.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.45 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.04, and below the 200-day MA of 2.61, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 70.44 is Negative, neither overbought nor oversold. The STOCH value of 84.59 is Negative, 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	80 Outperform	C$425.30M	6.81	11.38%	3.52%	11.02%	102.23%
ACX	79 Outperform	C$174.19M	3.35	24.63%	―	-5.05%	147.92%
PD	76 Outperform	C$953.50M	8.94	6.58%	―	-1.90%	-52.33%
CFW	64 Neutral	C$291.17M	15.87	3.00%	―	-5.50%	-88.55%
Sector *	58 Neutral	$7.56B	3.29	-4.46%	10.00%	0.84%	-49.61%
ESI	58 Neutral	C$452.52M	14.37	-1.17%	―	-2.85%	-144.20%
WRG	52 Neutral	C$72.42M	―	-2.16%	―	6.43%	35.87%

Ensign Energy Services Corporate Events

Ensign Energy Services Announces 2025 Board Election Results

Ensign Energy Services Inc. announced the successful election of its board of directors at the annual meeting held on May 9, 2025. All nominated directors were elected, and other matters, including the advisory vote on executive compensation, were approved. This election solidifies the company’s leadership and supports its strategic direction in the competitive oilfield services industry.

The most recent analyst rating on (TSE:ESI) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.

Ensign Energy Services Reports Q1 2025 Results: Revenue Up, Debt Reduction in Focus

Ensign Energy Services Inc. reported its first-quarter results for 2025, showing a slight increase in revenue to $436.5 million compared to the previous year. Despite this, the company experienced a decrease in adjusted EBITDA and funds flow from operations. The company saw an improvement in net income, turning a profit of $3.7 million compared to a loss in the same period last year. Operationally, Canadian drilling and well servicing saw increases, while the U.S. and international operations experienced declines. Ensign is focused on reducing its debt, with significant repayments made and a target to reduce debt by $600 million by the end of 2025. The company also amended its credit facility to adjust the schedule of borrowing reductions.

The most recent analyst rating on (TSE:ESI) stock is a Buy with a C$3.5000 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.

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.