TSX:ESI

Stock Analysis Report

Ensign Energy Services

Executive Summary

Ensign Energy Services Inc., together with its subsidiaries, provides oilfield services to the oil and natural gas industry in Canada, the United States, and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ensign Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.8%

ESI

8.8%

CA Energy Services

1.1%

CA Market


1 Year Return

-90.6%

ESI

-72.9%

CA Energy Services

-22.9%

CA Market

Return vs Industry: ESI underperformed the Canadian Energy Services industry which returned -72.9% over the past year.

Return vs Market: ESI underperformed the Canadian Market which returned -22.9% over the past year.


Shareholder returns

ESIIndustryMarket
7 Day5.8%8.8%1.1%
30 Day-64.5%-47.5%-17.3%
90 Day-80.4%-60.9%-23.4%
1 Year-87.3%-90.6%-71.4%-72.9%-20.4%-22.9%
3 Year-89.4%-93.3%-80.1%-82.1%-12.7%-20.8%
5 Year-90.8%-94.9%-82.5%-84.9%0.1%-14.9%

Price Volatility Vs. Market

How volatile is Ensign Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ensign Energy Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESI (CA$0.55) is trading below our estimate of fair value (CA$4.41)

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


Price To Earnings Ratio

PE vs Industry: ESI is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: ESI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESI is good value based on its PB Ratio (0.1x) compared to the CA Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Ensign Energy Services forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ESI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ESI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ESI's revenue is expected to decline over the next 3 years (-11.1% per year).

High Growth Revenue: ESI's revenue is forecast to decline over the next 3 years (-11.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESI is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Ensign Energy Services performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESI is currently unprofitable.

Growing Profit Margin: ESI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ESI is unprofitable, but has reduced losses over the past 5 years at a rate of 10.7% per year.

Accelerating Growth: Unable to compare ESI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ESI is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (4.1%).


Return on Equity

High ROE: ESI has a negative Return on Equity (-11.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ensign Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: ESI's short term assets (CA$368.3M) exceed its short term liabilities (CA$241.3M).

Long Term Liabilities: ESI's short term assets (CA$368.3M) do not cover its long term liabilities (CA$1.8B).


Debt to Equity History and Analysis

Debt Level: ESI's debt to equity ratio (107.7%) is considered high.

Reducing Debt: ESI's debt to equity ratio has increased from 38.4% to 107.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ESI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ESI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.1% per year.


Next Steps

Dividend

What is Ensign Energy Services's current dividend yield, its reliability and sustainability?

43.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESI's dividend (43.64%) is higher than the bottom 25% of dividend payers in the Canadian market (2.68%).

High Dividend: ESI's dividend (43.64%) is in the top 25% of dividend payers in the Canadian market (8.42%)


Stability and Growth of Payments

Stable Dividend: ESI's dividend payments have been volatile in the past 10 years.

Growing Dividend: ESI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: ESI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ESI is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Bob Geddes (62yo)

13.25s

Tenure

CA$1,882,035

Compensation

Mr. Robert H. Geddes, also known as Bob, has been Director, President and Chief Operating Officer of Trinidad Drilling Ltd. since November 28, 2018. Mr. Geddes has been the Chairman of Board at Trinidad Dr ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD1.33M) is above average for companies of similar size in the Canadian market ($USD158.50K).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Geddes
President13.25yrsCA$1.88m0.64% CA$574.1k
Michael Gray
Chief Financial Officer3.5yrsCA$642.79k0.076% CA$67.9k
Michael Nuss
Executive Vice President of United States Operations3.5yrsCA$1.24m0.077% CA$69.2k
Thomas Connors
Executive Vice President of Canada3.5yrsCA$841.65k0.10% CA$93.3k
Nicole Romanow
Head of Investor Relationsno datano datano data
Suzanne Davies
VP of Legal & Corporate Secretaryno datano datano data
Cathy Robinsons
Vice President of Global Human Resources11.75yrsno datano data
Bob Zanusso
Senior Vice President of Canadian Drillingno datano datano data
Wayne Kipp
Senior Vice President of Engineeringno datano datano data
Gene Gaz
Senior Vice President of International East Operations for International Oilfield Services ­ Eastno datano datano data

3.5yrs

Average Tenure

Experienced Management: ESI's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Geddes
President13.25yrsCA$1.88m0.64% CA$574.1k
Gary Casswell
Independent Director2.33yrsCA$158.88k0.025% CA$22.0k
Cary Moomjian
Independent Director5.42yrsCA$161.43k0.29% CA$259.9k
Barth Whitham
Independent Director13.08yrsCA$157.42k0.093% CA$83.6k
Norman Edwards
Chairman of the Boardno dataCA$1.33m19.36% CA$17.4m
Gail Surkan
Independent Director14.08yrsCA$153.93k0.034% CA$30.4k
James Howe
Independent Director32.83yrsCA$160.60k0.31% CA$282.4k
Leonard Kangas
Lead Directorno dataCA$163.59k0.049% CA$43.6k
John Schroeder
Independent Director29.83yrsCA$165.23k0.011% CA$10.1k

13.1yrs

Average Tenure

69yo

Average Age

Experienced Board: ESI's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ESI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ensign Energy Services Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ensign Energy Services Inc.
  • Ticker: ESI
  • Exchange: TSX
  • Founded: 1987
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: CA$89.715m
  • Shares outstanding: 163.12m
  • Website: https://www.ensignenergy.com

Number of Employees


Location

  • Ensign Energy Services Inc.
  • 400 - 5th Avenue SW
  • Suite 1000
  • Calgary
  • Alberta
  • T2P 0L6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESITSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
ENBDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
ESVI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Ensign Energy Services Inc., together with its subsidiaries, provides oilfield services to the oil and natural gas industry 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 other 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, it offers transportation services. As of December 31, 2019, it operated a fleet of 226 land drilling rigs, 21 specialty coring rigs, and 99 well servicing rigs. Ensign Energy Services Inc. was founded in 1987 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:39
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.