Is it a good company at a reasonable price? I do still like this company and I plan to hold on to the shares I have. However, I am using my fooling around money on this. This is a risky buy and a small cap. You should not invest any money in this that you cannot afford to lose. I think that this stock is still cheap.
I own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. In June 2020, Ensign was selling at $0.74. It was quite a low, so I bought some. I again bought more in May 2021 at $1.33. If you consider my adventure in this stock from 2012, I have a loss of 0.94% per year. If you just consider what I bought from 2020, my total return is 27.21% per year.
When I was updating my spreadsheet, I noticed I had held this stock for 3 years between 2012 and 2014 and lost money. However, I bought this stock again in 2020 and I have made money, because I bought at a very low price. I do not own much of this stock. It is just fooling around money. I also noticed that the Officers of this company that I follow, all bought stock last year. None of the Directors I follow did, but the Chairman owns around 23% of the outstanding shares.
If you had invested in this company in December 2013, for $1,003.80 you would have bought 60 shares at $16.73 per share. In December 2023, after 10 years you would have received $179.40 in dividends. The stock would be worth $130.20. Your total return would have been $309.60. This would be a total loss of 15.04% per year with 18.47% from capital loss and 3.44% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $16.73 | $1,003.80 | 60 | 10 | $179.40 | $130.20 | $309.60 |
If you had invested in this company in December 2020, for $1,000.09 you would have bought 1,099 shares at $0.91 per share. In December 2023, after 3 years you would have received $0.00 in dividends. The stock would be worth $2,384.83. Your total return would have been $2,384.83. This would be a total return of 33.60% per year with 33.60% from capital gains and 0.0% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $0.91 | $1,000.09 | 1,099 | 3 | $0.00 | $2,384.83 | $2,384.83 |
This company has suspended their dividend as of 2020. There is no indication on when they might resume dividends. Therefore, there is no The Dividend Payout Ratios (DPR) data currently.
Debt Ratios are generally fine, but the company has a lot of debt compared to the market cap. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 2.76 and currently at 2.75. The Liquidity Ratio for 2023 is low at 1.04 and 1.11 currently. If you added in Cash Flow after dividends, the ratios are fine at 2.39 and currently at 2.00. The Debt Ratio for 2023 is good at 1.80 and 1.80 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 2.25 and 1.25 and currently at 2.25 and 1.25.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 2.76 | 2.75 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 1.04 | 1.11 |
| Liq. + CF | 2.39 | 2.00 |
| Liq, CF,DB | 1.50 | 1.57 |
| Debt Ratio | 1.80 | 1.80 |
| Leverage | 2.25 | 2.25 |
| D/E Ratio | 1.25 | 1.25 |
The Total Return per year is shown below for years of 5 to 32 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | -11.57% | -14.36% | 2.78% |
| 2013 | 10 | 0.00% | -15.04% | -18.47% | 3.44% |
| 2008 | 15 | 0.00% | -6.15% | -11.35% | 5.20% |
| 2003 | 20 | 0.00% | -1.62% | -7.49% | 5.87% |
| 1998 | 25 | 0.00% | 9.80% | -0.14% | 9.94% |
| 1993 | 30 | 0.00% | 13.22% | 2.83% | 10.39% |
| 1991 | 32 | 0.00% | 25.37% | 8.35% | 17.02% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative, so they are useless. The corresponding 10 year ratios are also negative and useless. The corresponding historical ratios are 8.48, 12.36 and 16.62. The current P/E Ratio is 26.53 based on a stock price of $2.21 and EPS estimate for 2024 of $0.08. This ratio is higher than the historical median high ratio. This stock price testing suggests that the stock price is relatively expensive.
However, the P/E Ratio for 2025 is 5.57 based on a stock price of $2.21 and EPS estimate for 2025 of $0.38. This ratio is quite low and is below the low ratio of the median historical ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 0.82, 1.49 and 2.30. The corresponding 10 year ratios are 2.24, 3.51 and 4.78. The current P/FFO Ratio is 1.06 based on a stock price of $2.21 and FFO estimate for 2024 of $2.08. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $18.41. The 10-year low, median, and high median Price/Graham Price Ratios are 0.18, 0.28 and 0.39. The current P/GP Ratio is 0.11 based on a stock price of $2.21. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 0.51. The current P/B Ratio is 0.31 based on a Book Value of $1,328M, Book Value per Share of $7.24 and a stock price of $2.21. The current ratio is 40% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. Note that the Book Value is in theory the breakup value of a company, so the P/B Ratios are really low as the Book Value is much higher than the stock price.
I also have a Book Value per Share estimate for 2024 of $7.27. This implies a P/B Ratio of 0.30 based on a stock price of $2.21 and a Book Value of $1, 336M. This P/B Ratio is 41% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 3.00. The current P/CF Ratio is 1.21 based Cash Flow per Share estimate for 2024 of $1.83, Cash Flow of $336M and a stock price of $2.21. The current ratio is 60% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any dividend yield testing, because the dividend has been suspended.
The 10-year median Price/Sales (Revenue) Ratio is 0.62. The current P/S Ratio is 0.24 based on Revenue estimate for 2024 of $1,678M, Revenue per Share of $9.15 and a stock price of $2.21. The current ratio is 61% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. I next favourite stock price test after the dividend yield tests is the P/S Ratio test. In this test, the stock price is showing as cheap. Most of the rest of the testing is showing the same thing.
When I look at analysts’ recommendations, I find Strong Buy (3), Buy (2) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $3.71, with a high of $5.00 and a low of $2.75. The consensus stock price of $3.71 implies a total return of 67.87%, all from capital gains.
The two entries for 2024 on Stock Chase are positive with one still seeing the stock as a Buy. Stock Chase gives this stock 4 stars out of 5. Eric Nuttall on BNN talks about Ensign Energy. Aditya Raghunath on Motley Fool thinks this stock is undervalued. Christopher Liew on Motley Fool liked this stock in 2023. The company put out a press release via Newswire about their fourth quarter of 2024. The company put out a press release via Newswire about its first quarter of 2024.
Simply Wall Street via Yahoo Finance looks at who owns shares in this company. Simply Wall Street gives this stock 3 and one half stars out of 5. Simply Wall Street has 2 warnings out on this stock of interest payments are not well covered by earnings; large one-off items impacting financial results.
Ensign Energy Services Inc provides oilfield services to the crude oil and natural gas industries in Canada, the United States, and internationally. Geographically the company operates in nine countries; Canada, the United States, Argentina, Australia, Bahrain, Kuwait, Oman, United Arab Emirates, and Venezuela. Its web site is here Ensign Energy Services.
The last stock I wrote about was about was Adentra Inc (TSX-ADEN, OTC- HDIUF) ... learn more. The next stock I will write about will be Sylogist Ltd (TSX-SYZ, OTC-SYZLF) ... learn more on Monday, June 10, 2024 around 5 pm.
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