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
| ESN | Industry | Market | |
|---|---|---|---|
| 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
1 week ago | Simply Wall St
Essential Energy Services (TSE:ESN) Has A Somewhat Strained Balance Sheet1 month ago | Simply Wall St
What You Must Know About Essential Energy Services Ltd.'s (TSE:ESN) Beta Value1 month ago | Simply Wall St
Investors Who Bought Essential Energy Services (TSE:ESN) Shares Five Years Ago Are Now Down 87%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
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$1,291,070
Compensation
Mr. Garnet K. Amundson has been the Chief Executive Officer and President of Essential Energy Services Ltd. since April 2008. Mr. Amundson served as the Chief Executive Officer and President of Essential EÂ ...
CEO Compensation Analysis
Compensation vs. Market: Garnet's total compensation ($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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ESN | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | May 2006 |
| 07E | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 2006 |
| EEYU.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 00:20 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.