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

Fundamentals

Undervalued average dividend payer.


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


Market Performance


7 Day Return

2.9%

ESI

0.4%

CA Energy Services

-0.1%

CA Market


1 Year Return

-50.4%

ESI

-37.0%

CA Energy Services

0.9%

CA Market

Return vs Industry: ESI underperformed the Canadian Energy Services industry which returned -37% over the past year.

Return vs Market: ESI underperformed the Canadian Market which returned 0.9% over the past year.


Shareholder returns

ESIIndustryMarket
7 Day2.9%0.4%-0.1%
30 Day-23.5%-11.1%-2.1%
90 Day-36.9%-16.3%-1.6%
1 Year-45.0%-50.4%-35.3%-37.0%4.4%0.9%
3 Year-56.5%-66.0%-41.1%-45.4%15.5%5.2%
5 Year-69.3%-78.7%-69.1%-72.5%25.7%7.5%

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

Undervalued: ESI (CA$2.86) is trading below our estimate of fair value (CA$10.68)

Significantly Undervalued: ESI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESI is good value based on its PE Ratio (6.6x) compared to the Energy Services industry average (16.1x).

PE vs Market: ESI is good value based on its PE Ratio (6.6x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ESI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ESI is good value based on its PB Ratio (0.3x) compared to the CA Energy Services industry average (0.8x).


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?

-31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESI's earnings are forecast to decline over the next 3 years (-31.3% per year).

Earnings vs Market: ESI's earnings are forecast to decline over the next 3 years (-31.3% per year).

High Growth Earnings: ESI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ESI's revenue (4.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: ESI's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ESI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-10.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ESI's earnings have declined by -10% per year over the past 5 years.

Accelerating Growth: ESI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ESI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (15.8%).


Return on Equity

High ROE: ESI's Return on Equity (4.3%) is considered low.


Return on Assets

ROA vs Industry: ESI's Return on Assets is below or equal to the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: ESI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ensign Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: ESI's short term assets (CA$435.7M) exceeds its short term liabilities (CA$252.9M)

Long Term Liabilities: ESI's short term assets (435.7M) do not cover its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: ESI's debt to equity ratio (103.8%) is considered high

Reducing Debt: ESI's debt to equity ratio has increased from 35.2% to 103.8% over the past 5 years.

Debt Coverage: ESI's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: Insufficient data to determine if ESI's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: ESI has a high level of physical assets or inventory.

Debt Coverage by Assets: ESI's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

16.78%

Current Dividend Yield


Dividend Yield vs Market

company16.8%marketbottom25%2.0%markettop25%6.0%industryaverage5.4%forecastin3Years16.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ESI's dividend (16.78%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: ESI's dividend (16.78%) is in the top 25% of dividend payers in the Canadian market (5.98%)

Stable Dividend: ESI's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110.7%), ESI's dividend payments are not well covered by earnings.


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

What is the CEO of Ensign Energy Services's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Bob Geddes (62yo)

12.8yrs

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 ($USD1.42M) is about average for companies of similar size in the Canadian market ($USD1.06M).

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


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: ESI's management team is considered experienced (3 years average tenure).


Board Age and Tenure

12.6yrs

Average Tenure

69yo

Average Age

Experienced Board: ESI's board of directors are seasoned and experienced ( 12.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$72,88706 Sep 19
Michael Nuss
EntityIndividual
Role
Senior Key Executive
Executive Vice President of United States Operations
Shares14,400
Max PriceCA$5.06
BuyCA$101,71306 Sep 19
CIBC World Markets Corp., Brokerage and Security Investments
EntityCompany
Shares33,000
Max PriceCA$3.24
BuyCA$13,61327 Aug 19
Cary Moomjian
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$2.72
SellCA$216,59714 Aug 19
Thomas Connors
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Canada
Shares75,522
Max PriceCA$2.87
BuyCA$40,69003 Jul 19
Thomas Connors
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Canada
Shares10,000
Max PriceCA$4.07
BuyCA$30,57127 Jun 19
Cary Moomjian
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceCA$4.37
BuyCA$29,05319 Jun 19
Gary Casswell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceCA$4.84
BuyCA$4,90512 Jun 19
Michael Gray
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceCA$4.91
BuyCA$19,94410 Jun 19
Michael Gray
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max PriceCA$4.99
BuyCA$212,85220 Feb 19
Robert Geddes
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceCA$5.32

Ownership Breakdown


Management Team

  • Bob Geddes (62yo)

    President

    • Tenure: 12.8yrs
    • Compensation: CA$1.88m
  • Bob Zanusso

    Senior Vice President of Canadian Drilling

    • Tenure: 0yrs
  • Michael Nuss

    Executive Vice President of United States Operations

    • Tenure: 3yrs
    • Compensation: CA$1.24m
  • Wayne Kipp

    Senior Vice President of Engineering

    • Tenure: 0yrs
  • Gene Gaz

    Senior Vice President of International East Operations for International Oilfield Services ­ East

    • Tenure: 0yrs
  • Suzanne Davies

    VP of Legal & Corporate Secretary

    • Tenure: 0yrs
  • Tom Connors

    Executive Vice President of Canada

    • Tenure: 3yrs
    • Compensation: CA$841.65k
  • Cathy Robinsons

    Vice President of Global Human Resources

    • Tenure: 11.3yrs
  • Mike Gray

    Chief Financial Officer

    • Tenure: 3yrs
    • Compensation: CA$642.79k
  • Nicole Romanow

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Gary Casswell (66yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$158.88k
  • Cary Moomjian (71yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: CA$161.43k
  • Barth Whitham (62yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: CA$157.42k
  • Norman Edwards (59yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$1.33m
  • Gail Surkan (72yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: CA$153.93k
  • Jim Howe (69yo)

    Independent Director

    • Tenure: 32.3yrs
    • Compensation: CA$160.60k
  • Bob Geddes (62yo)

    President

    • Tenure: 12.8yrs
    • Compensation: CA$1.88m
  • Len Kangas (70yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$163.59k
  • John Schroeder (72yo)

    Independent Director

    • Tenure: 29.3yrs
    • Compensation: CA$165.23k

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$457.827m
  • Shares outstanding: 160.08m
  • 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, in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:49
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.