TSX:ESN

Stock Analysis Report

Essential Energy Services

Executive Summary

Essential Energy Services Ltd., together with its subsidiaries, provides oilfield services to oil and gas exploration and production companies primarily in western Canada.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

ESN

-1.9%

CA Energy Services

-0.2%

CA Market


1 Year Return

-36.7%

ESN

-36.9%

CA Energy Services

1.5%

CA Market

Return vs Industry: ESN matched the Canadian Energy Services industry which returned -36.9% over the past year.

Return vs Market: ESN underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

ESNIndustryMarket
7 Day-1.7%-1.9%-0.2%
30 Day-9.5%-12.2%-3.5%
90 Day-13.6%-19.1%-1.8%
1 Year-36.7%-36.7%-35.1%-36.9%5.1%1.5%
3 Year-52.5%-52.5%-43.9%-48.0%13.3%3.2%
5 Year-84.7%-86.2%-68.9%-72.3%25.2%7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Essential 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: ESN (CA$0.29) is trading below our estimate of fair value (CA$1.5)

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


Price To Earnings Ratio

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

PE vs Market: ESN 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 ESN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESN is good value based on its PB Ratio (0.3x) compared to the CA Energy Services industry average (0.7x).


Next Steps

Future Growth

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

175.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ESN's revenue (3.7% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: ESN's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESN's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

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

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ESN is unprofitable, but has reduced losses over the past 5 years at a rate of 10.1% per year.

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

Earnings vs Industry: ESN is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (15.8%).


Return on Equity

High ROE: ESN has a negative Return on Equity (-7.47%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ESN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

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


Next Steps

Financial Health

How is Essential Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: ESN's short term assets (CA$64.6M) exceeds its short term liabilities (CA$17.0M)

Long Term Liabilities: ESN's short term assets (64.6M) exceeds its long term liabilities (26.4M)


Debt to Equity History and Analysis

Debt Level: ESN's debt to equity ratio (4.9%) is considered satisfactory

Reducing Debt: ESN's debt to equity ratio has reduced from 11.8% to 4.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ESN's debt is covered by short term assets (assets are 8.672120x debt).


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 ESN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ESN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage5.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ESN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ESN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ESN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ESN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ESN is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ESN's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Garnet Amundson (57yo)

11.5yrs

Tenure

CA$1,291,070

Compensation

Mr. Garnet K. Amundson has been the Chief Executive Officer and President of Essential Energy Services Ltd. since April 2008. Mr. Amundson served as the Chief Executive Officer and President of Essential E ...


CEO Compensation Analysis

Compensation vs. Market: Garnet's total compensation ($USD983.00K) is about average for companies of similar size in the Canadian market ($USD131.81K).

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


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: ESN's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ESN's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Garnet Amundson (57yo)

    President

    • Tenure: 11.5yrs
    • Compensation: CA$1.29m
  • Jeff Newman (53yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
    • Compensation: CA$681.22k
  • Karen Perasalo

    VP of Finance & Corporate Secretary

    • Tenure: 6.8yrs
    • Compensation: CA$616.79k
  • Kevin Job

    Director of Corporate

    • Tenure: 11.5yrs
    • Compensation: CA$1.21m
  • Eldon Heck

    Vice President of Downhole Tools & Rentals

    • Tenure: 1.8yrs
    • Compensation: CA$878.17k

Board Members

  • Garnet Amundson (57yo)

    President

    • Tenure: 11.5yrs
    • Compensation: CA$1.29m
  • Jim Banister (74yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: CA$123.50k
  • Bob Michaleski (66yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$101.86k
  • Nick Kirton (74yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$101.86k
  • Michael Black (59yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: CA$82.06k
  • Robert German (59yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$95.41k

Company Information

Essential Energy Services Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essential Energy Services Ltd.
  • Ticker: ESN
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$40.429m
  • Shares outstanding: 141.86m
  • Website: https://www.essentialenergy.ca

Number of Employees


Location

  • Essential Energy Services Ltd.
  • Livingston Place West
  • Suite 1100
  • Calgary
  • Alberta
  • T2P 0C1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESNTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2006
07EDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2006
EEYU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2006

Biography

Essential Energy Services Ltd., together with its subsidiaries, provides oilfield services to oil and gas exploration and production companies primarily in western Canada. The company operates in two segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:20
End of Day Share Price2019/10/18 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.