Is it a good company at a reasonable price? Since this is a small cap company, I am using fooling around money for it. I find the company interesting. I am currently holding on to the shares I have, but I currently have no plans to buy anymore. The company seems to be recovering. Time will tell. The stock price is probably 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. Details of why is in a December 2014 post. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply Ensign and Mullen. 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 $.33.
When I was updating my spreadsheet, I noticed that if you consider my adventure in this stock from 2012, I currently have a loss of 2.31% per year. If you just consider what I bought from 2020, my total return is 15.99% per year.
If you had invested in this company in December 2014, for $1,009.80 you would have bought 99 shares at $10.20 per share. In December 2024, after 10 years you would have received $249.48 in dividends. The stock would be worth $295.02. Your total return would have been $544.50. This would be a total loss of 8.04% per year with 11.58% from capital loss and 3.53% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $10.20 | $1,009.80 | 99 | 10 | $249.48 | $295.02 | $544.50 |
If you had invested in this company in December 2020, for $1,000.06 you would have bought 1,099 shares at $0.91 per share. In December 2024, after 4 years you would have received $0.00 in dividends. The stock would be worth $3,275.02. Your total return would have been $3,275.02. This would be a total gain of 34.49% per year with 34.49% from capital gain and 0.00% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $0.91 | $1,000.09 | 1,099 | 4 | $0.00 | $3,275.02 | $3,275.02 |
Currently, this stock pays no dividend, so I cannot rate a current dividend yield and there is, of course, no Dividend Payout Ratios (DPR).
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is of course far too high for 2024 at 1.59 and currently at 1.92, but this is, of course, a function of the big decline in the stock price. The Liquidity Ratio for 2024 is too low at 0.79 and 0.79 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.76 and currently at 1.47. The Debt Ratio for 2024 is good at 1.89 and 1.92 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.13 and 1.13 and currently at 2.08 and 1.08.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 1.59 | 1.92 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 0.79 | 0.79 |
| Liq. + CF | 1.76 | 1.47 |
| Liq, CF,DB | 1.26 | 1.35 |
| Debt Ratio | 1.89 | 1.92 |
| Leverage | 2.13 | 2.08 |
| D/E Ratio | 1.13 | 1.08 |
The Total Return per year is shown below for years of 5 to 33 to the end of 2024. 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | 1.75% | 0.90% | 0.86% |
| 2014 | 10 | 0.00% | -8.04% | -11.58% | 3.53% |
| 2009 | 15 | 0.00% | -6.43% | -10.21% | 3.78% |
| 2004 | 20 | 0.00% | -2.48% | -6.94% | 4.46% |
| 1999 | 25 | 0.00% | 3.41% | -2.48% | 5.90% |
| 1994 | 30 | 0.00% | 15.35% | 4.33% | 11.01% |
| 1991 | 33 | 0.00% | 25.38% | 9.13% | 16.25% |
The 5 and 10 year low, median, and high median Price/Earnings per Share Ratios are negative and so useless. The corresponding historical ratios are 8.35, 12.27 and 16.43. The current P/E is 101.72 based on a stock price of $2.37 and EPS estimate for 2025 of $0.02. This all would suggest that this stock price testing suggests that the stock price is relatively expensive.
I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 0.82, 1.27 and 2.12. The corresponding 10 year ratios are 1.20, 2.22 and 3.31. The corresponding historical ratios are 3.57, 4.73 and 5.95. The current P/AEPS ratio is 1.33 based on a stock price of $2.37 and AEPS estimate for 2025 of $1.78. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $17.30. The 10-year low, median, and high median Price/Graham Price Ratios are 0.12, 0.21 and 0.31. The current ratio is 0.14 based on a stock price of $2.37. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This Graham Price is based on FFO as there is two many years of earnings losses to base it on EPS.
I get a 10-year median Price/Book Value per Share Ratio of 0.47. The current ratio is 0.32 based on a stock price of $2.37, Book Value of $1,372M and Book Value per Share of $7.48. The current ratio is 33% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have a book value estimate for 2025 of $7.48. This would end of up the same above with stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 2.23. The current P/CF Ratio is 1.36 based on Cash Flow per Share estimate for 2025 of $1.74, Cash Flow of $319.5M and a stock price $2.37. The current ratio is 39% 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 as dividends on this stock have been discontinued.
The 10-year median Price/Sales (Revenue) Ratio is 0.41. The current P/S Ratio is 0.26 based on Revenue estimate for 2025 of $1,667M, Revenue per Share of $9.09 and a stock price of $2.37. The current ratio is 36% 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 relatively cheap. There are no dividends for dividend yield testing. However, the P/S Ratio test is good and it says that the stock price is relatively cheap. The rest of the testing says that the stock price is either cheap or reasonable but below the median.
When I look at analysts’ recommendations, I find Buy (2) and Hold (4). The consensus would be a Hold. The 12 month stock price consensus is $2.58 with a high of $3.00 and low of $2.25. The consensus stock price of $2.58 implies a total return of 8.86% all from capital gains.
There is a number of entries on Stock Chase, but there are only two ratings of Hold and Buy. They mention that the company is paying down its debt with their current debt repayment plan. Amy Legate-Wolfe on Motley Fool thinks it has some strong potential for growth. Aditya Raghunath on Motley Fool thinks that this stock can help you beat the market over time. He thinks that this company might be on the cusp of a turnaround. The company put out a press release via Newswire about its fourth quarter of 2024. The company put out a press release via Newswire about their first quarter of 2025.
Simply Wall Street via Yahoo Finance talks about who owns this company. There is a lot of insider ownership at almost 28%. Simply Wall Street via Yahoo Finance looks at Return on Capital Employed (ROCE) for this company. They find that it is low but growing. Simply Wall Street seem no risks for this company. This surprises me but the stock does pass all their tests.
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 Wednesday, June 11, 2025 around 5 pm. Tomorrow on my other blog I will write about Home Buying in Canada.... learn more on Tuesday, June 10, 2025 around 5 pm.
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