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Investor Insights

This summary was created by AI, based on 8 opinions in the last 12 months.

Ensign Resource Service Group (ESI-T) has been described as a volatile stock with a strong revenue potential and consistent free cash flow. The company has reported strong first quarter results and is expected to continue generating significant free cash flow, which it plans to utilize for debt repayment and potential share buybacks. However, concerns have been raised regarding the company's debt issue and its lagging performance compared to other service names in the industry.

Consensus
Hold
Valuation
Undervalued
COMMENT

From its recent results there is investor concern over whether they can pay down $200 million in debt that they had planned to do this year but management says they can. Total debt is $600 million. With a $500 million market cap, its free cash flow yields 40% and it trades at a decent value today.

oil / gas
PAST TOP PICK
(A Top Pick May 15/23, Up 22%)

It anticipated $200 million in free cash flow and achieved this. It is reflected in the price so he would hold back on new buying.

oil / gas
PAST TOP PICK
(A Top Pick Nov 14/22, Down 46%)

Still likes it. Has a price-free cash flow ratio of 2. Revenues depend on commodity prices, but the Oil Patch has become much more stable. They continue to pay down debt, so down the road can raise the dividend. Shares are down because sentiment to oil services is negative, and the company carries debt.

oil / gas
PAST TOP PICK
(A Top Pick Jun 20/22, Down 44%)

It has been a very volatile stock. The price is lower than a few years ago even though the debt situation is better now along with higher natural gas and oil prices. Analysts are targeting a price increase of 125% over the next 12 months.

oil / gas
DON'T BUY

Sideways looking pattern. Hard to predict future of stock. Doesn't seem to be going anywhere. If fails $2.00 mark, could be more downside. 5/10 rating. 

oil / gas
PAST TOP PICK
(A Top Pick Nov 14/22, Down 41%)

It is in the energy services business.There has been a big drop in the rig count in the U.S. However the number of uncompleted holes is at a ten year low so new drilling will be needed. Also the price of natural gas is recovering. It is generating $200 million in free cash flow this year and the market cap is $400 million.

oil / gas
DON'T BUY

Service names have been strong, but this one has lagged. Debt issue. Leading edge rates are falling in US and Canada. Better opportunities in oil names.

oil / gas
PAST TOP PICK
(A Top Pick Jun 20/22, Down 43%)

He first bought it at 50 cents and it has had a bumpy ride through the years. It is now trading at an attractive yield with a $400 million value and $200 million in free cash flow this year. This gives it a very good 2 X free cash flow multiple. It will likely be using this cash to pay down debt.

oil / gas
TOP PICK

It recently reported its best best first quarter since 2014 and is on track for its first positive year since then, even though it acquired a lot more debt. At $2 per share the market is valuing it at 400 million. It expects to have 200 million in free cash flow this year so it would be trading at 2X free cash flow. With this money it could buy back half its shares in one year or pay a very large dividend of perhaps $0.50 per share. However the company is planning to pay back debt which is good since it will increase the equity value.    Buy 5  Hold 4  Sell 0

(Analysts’ price target is $4.81)
oil / gas
TOP PICK
More debt than in 2014. Operations are more profitable than in 2018. Should trade around $6. No dividend. (Analysts’ price target is $5.69)
oil / gas
TOP PICK
Natural gas is at a 14 year high and oil is at an 8 year high while ESI is only at 3 1/2 year high. There is going to be demand for oil and gas for years to come and drillers will be beneficiaries. It is over-leveraged but has greater upside over other drillers when things work out. Also Murray Edwards owns 20% and his access to capital is pretty sufficient. Buy 7, Hold 2 Sell 0 (Analysts’ price target is $6.00)
oil / gas
PAST TOP PICK
(A Top Pick May 17/21, Up 247%) There is still more upside. It is not even at a three year high but oil and gas are at multi year highs. He hasn't sold any.
oil / gas
TOP PICK
Trading 40% lower than where it was in January 2020 before the pandemic. Oil prices and natural gas trading much higher than in January 2020. Discounted valuation makes the stock a top pick.
oil / gas
PAST TOP PICK
(A Top Pick Nov 16/20, Up 189%) It sold off recently. There is still room for further upside, but it will be volatile. You should see more drilling next year.
oil / gas
DON'T BUY
Liquidity is a challenge. They do not have sufficient volume. If you are bullish on oil is to go through small cap oil plays.
oil / gas
Showing 1 to 15 of 184 entries

Ensign Resource Service Group(ESI-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 7

Stockchase rating for Ensign Resource Service Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Ensign Resource Service Group(ESI-T) Frequently Asked Questions

What is Ensign Resource Service Group stock symbol?

Ensign Resource Service Group is a Canadian stock, trading under the symbol ESI-T on the Toronto Stock Exchange (ESI-CT). It is usually referred to as TSX:ESI or ESI-T

Is Ensign Resource Service Group a buy or a sell?

In the last year, 7 stock analysts published opinions about ESI-T. 5 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Ensign Resource Service Group.

Is Ensign Resource Service Group a good investment or a top pick?

Ensign Resource Service Group was recommended as a Top Pick by on . Read the latest stock experts ratings for Ensign Resource Service Group.

Why is Ensign Resource Service Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Ensign Resource Service Group worth watching?

7 stock analysts on Stockchase covered Ensign Resource Service Group In the last year. It is a trending stock that is worth watching.

What is Ensign Resource Service Group stock price?

On 2024-05-29, Ensign Resource Service Group (ESI-T) stock closed at a price of $2.32.