AIM:NTQ

Stock Analysis Report

Executive Summary

Enteq Upstream Plc, together with its subsidiaries, provides reach and recovery products and technologies to the upstream oil and gas services market primarily in the United States.

Rewards

Trading at 52.8% below its fair value

Earnings are forecast to grow 103.14% per year

Earnings have grown 72.1% per year over the past 5 years

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (£16M)



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.1%

NTQ

-7.1%

GB Energy Services

-3.0%

GB Market


1 Year Return

6.7%

NTQ

-26.1%

GB Energy Services

11.0%

GB Market

Return vs Industry: NTQ exceeded the UK Energy Services industry which returned -25.8% over the past year.

Return vs Market: NTQ underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

NTQIndustryMarket
7 Day2.1%-7.1%-3.0%
30 Day-7.7%-7.1%-2.4%
90 Day-18.6%-2.9%3.9%
1 Year6.7%6.7%-22.6%-26.1%16.8%11.0%
3 Year17.1%17.1%-51.3%-56.7%20.0%4.7%
5 Year54.8%54.8%-29.6%-41.2%38.9%6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Enteq Upstream 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: NTQ (£0.24) is trading below our estimate of fair value (£0.51)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NTQ is good value based on its PB Ratio (0.9x) compared to the GB Energy Services industry average (0.9x).


Next Steps

Future Growth

How is Enteq Upstream forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

103.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: NTQ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NTQ's is expected to become profitable in the next 3 years.

Revenue vs Market: NTQ's revenue (14.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: NTQ's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTQ's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Enteq Upstream performed over the past 5 years?

72.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTQ is currently unprofitable.

Growing Profit Margin: NTQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NTQ is unprofitable, but has reduced losses over the past 5 years at a rate of 72.1% per year.

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

Earnings vs Industry: NTQ is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (86.1%).


Return on Equity

High ROE: NTQ has a negative Return on Equity (-0.85%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enteq Upstream's financial position?


Financial Position Analysis

Short Term Liabilities: NTQ's short term assets ($18.3M) exceed its short term liabilities ($2.3M).

Long Term Liabilities: NTQ has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NTQ is debt free.

Reducing Debt: NTQ has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NTQ's debt is covered by short term assets.


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: NTQ has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NTQ has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.1%industryaverage6.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate NTQ'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 NTQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NTQ'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 NTQ's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Enteq Upstream's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average management tenure


CEO

Martin Perry (57yo)

8.8yrs

Tenure

US$613,000

Compensation

Mr. Martin Gordon Perry has been Chief Executive Officer of Enteq Upstream Plc since April 5, 2011. Mr. Perry served as the Chief Executive Officer and Executive Director at Sondex Ltd. He joined the oil i ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD613.00K) is above average for companies of similar size in the UK market ($USD326.78K).

Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.7yrs

Average Tenure

59yo

Average Age

Experienced Management: NTQ's management team is seasoned and experienced (8.7 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NTQ's board of directors are considered experienced (7.1 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Martin Perry (57yo)

    Chief Executive Officer & Executive Director

    • Tenure: 8.8yrs
    • Compensation: US$613.00k
  • Raymond Garcia (63yo)

    Chief Operations Officer

    • Tenure: 8.7yrs
  • David Steel (59yo)

    Finance Director

    • Tenure: 5.6yrs
    • Compensation: US$362.00k

Board Members

  • Martin Perry (57yo)

    Chief Executive Officer & Executive Director

    • Tenure: 8.8yrs
    • Compensation: US$613.00k
  • Iain Paterson (72yo)

    Non-Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$39.00k
  • Rob Pinchbeck (66yo)

    Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: US$39.00k
  • David Steel (59yo)

    Finance Director

    • Tenure: 5.6yrs
    • Compensation: US$362.00k

Company Information

Enteq Upstream Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enteq Upstream Plc
  • Ticker: NTQ
  • Exchange: AIM
  • Founded: 2011
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£15.717m
  • Shares outstanding: 65.49m
  • Website: https://www.enteq.com

Number of Employees


Location

  • Enteq Upstream Plc
  • St Mary's Court
  • The Broadway
  • Amersham
  • Buckinghamshire
  • HP7 0UT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTQAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2011
ENQQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2011
5EQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2011

Biography

Enteq Upstream Plc, together with its subsidiaries, provides reach and recovery products and technologies to the upstream oil and gas services market primarily in the United States. It designs, manufactures, and sells specialized parts and products for directional drilling and measurement for use in the energy exploration and services sector of the Oil and Gas industry. The company offers MWD solution comprising downhole tools, surface equipment, wireline equipment, and handling tools; XXT downhole tools, including surface gears and software; and mechanical parts, such as tensor/GE type parts, blue start type products, APS type parts, and running gear products. It also provides drilling products, which include mud motor parts, float valves, and fabricated parts. Enteq Upstream PLC was founded in 2011 and is headquartered in Amersham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/28 21:52
End of Day Share Price2020/01/28 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.