DB:4EG

Stock Analysis Report

Executive Summary

ENGlobal Corporation provides engineered modular solutions and professional services primarily to the energy industry worldwide.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has ENGlobal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4EG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.1%

4EG

11.3%

DE Energy Services

2.1%

DE Market


1 Year Return

53.8%

4EG

-56.4%

DE Energy Services

-16.6%

DE Market

Return vs Industry: 4EG exceeded the German Energy Services industry which returned -57.2% over the past year.

Return vs Market: 4EG exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

4EGIndustryMarket
7 Day-11.1%11.3%2.1%
30 Day-25.6%-26.1%-12.6%
90 Day-28.5%-49.2%-22.9%
1 Year53.8%53.8%-55.3%-56.4%-14.2%-16.6%
3 Year-61.4%-61.4%-60.9%-64.8%-14.8%-21.9%
5 Year-57.0%-57.0%-76.2%-87.4%-16.6%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ENGlobal 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: 4EG (€0.64) is trading below our estimate of fair value (€8.09)

Significantly Below Fair Value: 4EG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4EG is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: 4EG is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4EG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4EG is overvalued based on its PB Ratio (1.4x) compared to the XE Energy Services industry average (0.4x).


Next Steps

Future Growth

How is ENGlobal forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.8%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ENGlobal has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ENGlobal performed over the past 5 years?

-48.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4EG is currently unprofitable.

Growing Profit Margin: 4EG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 4EG is unprofitable, and losses have increased over the past 5 years at a rate of -48.9% per year.

Accelerating Growth: Unable to compare 4EG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 4EG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (0.7%).


Return on Equity

High ROE: 4EG has a negative Return on Equity (-10.45%), as it is currently unprofitable.


Next Steps

Financial Health

How is ENGlobal's financial position?


Financial Position Analysis

Short Term Liabilities: 4EG's short term assets ($24.5M) exceed its short term liabilities ($13.2M).

Long Term Liabilities: 4EG's short term assets ($24.5M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: 4EG is debt free.

Reducing Debt: 4EG currently has no debt however we can't compare to 5 years ago as we have no data for that period.


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 4EG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 4EG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -30.1% per year.


Next Steps

Dividend

What is ENGlobal's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 4EG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 4EG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4EG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4EG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 4EG's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Bill Coskey (66yo)

7.67s

Tenure

US$49,442

Compensation

Mr. William A. Coskey, P.E Co-Founded ENGlobal Corp. in 1985 and has been Chief Executive Officer and President since August 1, 2012. Mr. Coskey serves as Chief Executive Officer and President of IDS Engin ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD49.44K) is below average for companies of similar size in the German market ($USD428.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Coskey
Founder7.67yrsUS$49.44k32.25% $5.8m
Mark Hess
CFO, Treasurer & Corporate Secretary7.58yrsUS$220.46k1.19% $213.8k
Robert Williams
Senior Vice President of Engineering & Construction Segment8.42yrsUS$240.01k0.56% $100.0k
Scott Curd
Vice President of Human Resourcesno datano datano data
Michael Patton
Senior Vice President10.5yrsUS$320.30kno data
John Kratzert
Senior Vice President of Automation2.25yrsno datano data

7.7yrs

Average Tenure

66yo

Average Age

Experienced Management: 4EG's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Coskey
Founder7.67yrsUS$49.44k32.25% $5.8m
Randall Hale
Independent Director18.33yrsUS$75.50k1.25% $225.3k
David Gent
Lead Independent Director18.25yrsUS$72.50k1.21% $217.4k
David Roussel
Independent Director18.33yrsUS$72.50k1.06% $191.2k
Kevin Palma
Independent Director3.83yrsno data0.16% $29.5k

18.3yrs

Average Tenure

66yo

Average Age

Experienced Board: 4EG's board of directors are seasoned and experienced ( 18.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

ENGlobal Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ENGlobal Corporation
  • Ticker: 4EG
  • Exchange: DB
  • Founded: 1985
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$19.409m
  • Listing Market Cap: US$17.990m
  • Shares outstanding: 27.41m
  • Website: https://www.englobal.com

Number of Employees


Location

  • ENGlobal Corporation
  • 654 North Sam Houston Parkway East
  • Suite 400
  • Houston
  • Texas
  • 77060-5914
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENGNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 1995
4EGDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995

Biography

ENGlobal Corporation provides engineered modular solutions and professional services primarily to the energy industry worldwide. It operates through Engineering, Procurement and Construction Management (EPCM); and Automation segments. The EPCM segment offers engineering services and fabrication relating to the development, management, and execution of projects requiring professional engineering and related project management services primarily to the energy industry, which include conceptual studies, project definition, cost estimating, engineering design, environmental compliance, material procurement, project management, and construction management. The Automation segment provides services related to the design, integration, and implementation of process distributed control and analyzer systems, advanced automated data gathering systems, information technology, and electrical projects; and designs, assembles, integrates, and services control and instrumentation systems for applications in the energy and processing related industries. It also offers automated fuel handling systems and maintenance services to branches of the U.S. military and public sector entities; and electrical and instrument installation, technical, maintenance and calibration, and repair services. This segment serves petroleum refining, petrochemical, pipeline, production, process, and pulp and paper industries, as well as the United States government. The company was founded in 1985 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:12
End of Day Share Price2020/04/06 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.