NasdaqCM:ENG

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 38.5% below its fair value

Risk Analysis

Earnings have declined by -53.77% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap ($27M)



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: ENG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

ENG

-5.2%

US Energy Services

-0.09%

US Market


1 Year Return

25.1%

ENG

-23.6%

US Energy Services

23.9%

US Market

Return vs Industry: ENG exceeded the US Energy Services industry which returned -16.1% over the past year.

Return vs Market: ENG matched the US Market which returned 24.6% over the past year.


Shareholder returns

ENGIndustryMarket
7 Day-0.1%-5.2%-0.09%
30 Day-2.1%-10.5%3.1%
90 Day0.9%2.8%10.4%
1 Year25.1%25.1%-21.2%-23.6%26.6%23.9%
3 Year-65.8%-65.8%-54.7%-60.3%50.9%41.2%
5 Year-42.0%-42.0%-52.0%-59.8%78.1%58.5%

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

Valuation

Is ENGlobal undervalued compared to its fair value and its price relative to the market?

37.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENG ($0.97) is trading below our estimate of fair value ($1.58)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ENG is overvalued based on its PB Ratio (2x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

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

51.5%

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?

-53.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENG is currently unprofitable.

Growing Profit Margin: ENG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ENG is unprofitable, and losses have increased over the past 5 years at a rate of -53.8% per year.

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

Earnings vs Industry: ENG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-23.5%).


Return on Equity

High ROE: ENG has a negative Return on Equity (-41.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ENGlobal's financial position?


Financial Position Analysis

Short Term Liabilities: ENG's short term assets ($17.9M) exceed its short term liabilities ($7.2M).

Long Term Liabilities: ENG's short term assets ($17.9M) exceed its long term liabilities ($1.7M).


Debt to Equity History and Analysis

Debt Level: ENG is debt free.

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


Balance Sheet

Inventory Level: ENG has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ENG'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: Whilst unprofitable ENG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ENG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -18.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Bill Coskey (66yo)

7.4yrs

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 ($USD49.44K) is below average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

7.4yrs

Average Tenure

66yo

Average Age

Experienced Management: ENG's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

18.0yrs

Average Tenure

66yo

Average Age

Experienced Board: ENG's board of directors are seasoned and experienced ( 18 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 not been meaningfully diluted in the past year.


Management Team

  • Bill Coskey (66yo)

    Founder

    • Tenure: 7.4yrs
    • Compensation: US$49.44k
  • Mike Patton (66yo)

    Senior Vice President

    • Tenure: 10.3yrs
    • Compensation: US$320.30k
  • Mark Hess (59yo)

    CFO, Treasurer & Corporate Secretary

    • Tenure: 7.3yrs
    • Compensation: US$220.46k
  • Robert Williams (66yo)

    Senior Vice President of Engineering & Construction Segment

    • Tenure: 8.2yrs
    • Compensation: US$240.01k
  • Scott Curd

    Vice President of Human Resources

    • John Kratzert (57yo)

      Senior Vice President of Automation

      • Tenure: 2yrs

    Board Members

    • Randy Hale (57yo)

      Independent Director

      • Tenure: 18.1yrs
      • Compensation: US$75.50k
    • Bill Coskey (66yo)

      Founder

      • Tenure: 7.4yrs
      • Compensation: US$49.44k
    • David Gent (66yo)

      Lead Independent Director

      • Tenure: 18yrs
      • Compensation: US$72.50k
    • David Roussel (70yo)

      Independent Director

      • Tenure: 18.1yrs
      • Compensation: US$72.50k
    • Kevin Palma (40yo)

      Independent Director

      • Tenure: 3.6yrs

    Company Information

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


    Key Information

    • Name: ENGlobal Corporation
    • Ticker: ENG
    • Exchange: NasdaqCM
    • Founded: 1985
    • Industry: Oil and Gas Equipment and Services
    • Sector: Energy
    • Market Cap: US$27.381m
    • 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
    • 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 in two segments, Engineering, Procurement and Construction Management (EPCM); and Automation. 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 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 Analysis2020/01/23 23:36
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/28
    Annual Earnings2018/12/29


    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.