Ensign Energy Services Valuation

Q: What is the Fair Price of ESI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ESI (CA$2.91) is trading below our estimate of [[fair value]] (CA$12.71)

Is ESI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ESI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ESI (CA$2.91) is trading below our estimate of fair value (CA$12.71)

Significantly Below Fair Value: ESI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ESI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ESI. This is calculated by dividing ESI's market cap by their current preferred multiple.
What is ESI's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	CA$516.87m

ESI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	3.5x
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does ESI's PE Ratio compare to its peers?

The above table shows the PE ratio for ESI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	8.1x
PHX PHX Energy Services	4.9x	n/a	CA$428.7m
PD Precision Drilling	4.8x	-14.2%	CA$1.2b
ACX ACT Energy Technologies	9.3x	61.2%	CA$225.0m
AKT.A AKITA Drilling	13.3x	n/a	CA$66.9m
ESI Ensign Energy Services	17.1x	70.6%	CA$516.9m

Price-To-Earnings vs Peers: ESI is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (8.1x).

Price to Earnings Ratio vs Industry

How does ESI's PE Ratio compare vs other companies in the CA Energy Services Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	24.6%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	24.6%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: ESI is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the North American Energy Services industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is ESI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ESI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.1x
Fair PE Ratio	29x

Price-To-Earnings vs Fair Ratio: ESI is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (29x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ESI forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$2.91	CA$3.58 +23.1%	12.5%	CA$4.50	CA$3.25	n/a	6
Oct ’25	CA$2.60	CA$3.63 +39.4%	12.4%	CA$4.50	CA$3.00	n/a	6
Sep ’25	CA$2.53	CA$3.63 +43.3%	12.4%	CA$4.50	CA$3.00	n/a	6
Aug ’25	CA$2.53	CA$3.75 +48.2%	15.4%	CA$5.00	CA$3.25	n/a	6
Jul ’25	CA$2.28	CA$3.92 +71.8%	14.1%	CA$5.00	CA$3.50	n/a	6
Jun ’25	CA$2.35	CA$3.71 +58.1%	17.0%	CA$5.00	CA$2.75	n/a	7
May ’25	CA$2.48	CA$3.79 +52.6%	16.7%	CA$5.00	CA$2.75	n/a	7
Apr ’25	CA$2.59	CA$3.71 +43.4%	17.8%	CA$5.00	CA$2.75	n/a	7
Mar ’25	CA$2.37	CA$3.64 +53.7%	19.4%	CA$5.00	CA$2.75	n/a	7
Feb ’25	CA$2.21	CA$3.57 +61.6%	20.7%	CA$5.00	CA$2.50	n/a	7
Jan ’25	CA$2.17	CA$3.86 +77.7%	17.6%	CA$5.00	CA$3.00	n/a	7
Dec ’24	CA$2.06	CA$4.39 +113.2%	27.0%	CA$7.00	CA$3.00	n/a	7
Nov ’24	CA$2.51	CA$4.71 +87.8%	29.8%	CA$8.00	CA$3.50	CA$2.91	7
Oct ’24	CA$3.26	CA$4.79 +46.8%	29.3%	CA$8.00	CA$3.50	CA$2.60	7
Sep ’24	CA$3.19	CA$4.71 +47.8%	31.6%	CA$8.00	CA$3.25	CA$2.53	7
Aug ’24	CA$2.48	CA$4.12 +66.2%	40.0%	CA$8.00	CA$2.50	CA$2.53	9
Jul ’24	CA$1.89	CA$4.53 +139.6%	37.3%	CA$8.50	CA$2.50	CA$2.28	9
Jun ’24	CA$2.13	CA$4.67 +119.1%	35.4%	CA$8.50	CA$2.50	CA$2.35	9
May ’24	CA$2.62	CA$5.38 +105.5%	26.8%	CA$8.50	CA$3.50	CA$2.48	9
Apr ’24	CA$3.04	CA$5.72 +88.0%	25.7%	CA$9.00	CA$3.70	CA$2.59	9
Mar ’24	CA$3.61	CA$6.00 +66.2%	24.8%	CA$9.00	CA$4.25	CA$2.37	9
Feb ’24	CA$3.78	CA$6.00 +58.7%	24.8%	CA$9.00	CA$4.25	CA$2.21	9
Jan ’24	CA$3.41	CA$5.86 +71.9%	22.2%	CA$8.00	CA$4.25	CA$2.17	9
Dec ’23	CA$3.85	CA$5.86 +52.2%	22.2%	CA$8.00	CA$4.25	CA$2.06	9
Nov ’23	CA$3.42	CA$5.31 +55.1%	24.7%	CA$7.00	CA$3.00	CA$2.51	9

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.