Enterprise Group, Inc. (TSX: E) (the “Company” or ”Enterprise”). Enterprise, a consolidator of energy services (including specialized equipment rental to the energy/resource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2 and Greenhouse Gas emissions for small to Tier One resource clients.
Fundamental Research Corp (FRC) recently released an in-depth research report on this unique and growing company. The chart tells the tale of the positivity exacted by the trade history TYD 2022.
Here are some salient and recent information sources for new potential investors and current shareholders.
Article by StreetwiseReports
Interestingly, FRC very recently released an update following the release of Enterprise’s Q2/2022.
| Three months June 30th, 2022 | Three months June 30th, 2021 | Six months June 30th, 2022 | Six months June 30th, 2021 | ||||||||||||||||||
| Revenue | $ | 5,297,685 | $ | 3,225,543 | $ | 12,927,103 | $ | 9,084,830 | |||||||||||||
| Gross margin | $ | 1,610,188 | 30% | $ | 580,312 | 18% | $ | 5,131,973 | 40% | $ | 3,306,699 | 36% | |||||||||
| Adjusted gross margin(1)(2) | $ | 1,610,188 | 30% | $ | 120,950 | 4% | $ | 5,131,973 | 40% | $ | 2,046,821 | 23% | |||||||||
| Adjusted EBITDA(1)(2) | $ | 1,015,978 | 19% | $ | (394,835 | ) | (12)% | $ | 4,045,803 | 31% | $ | 1,070,547 | 12% | ||||||||
| Net (loss) income and comprehensive (loss) income | $ | (513,268 | ) | $ | (1,626,547 | ) | $ | 1,164,744 | $ | (1,532,910 | ) | ||||||||||
| (Loss) the income per share – Basic | $ | (0.01 | ) | $ | (0.03 | ) | $ | 0.02 | $ | (0.03 | ) | ||||||||||
| (Loss) the income per share – Diluted | $ | (0.01 | ) | $ | (0.03 | ) | $ | 0.02 | $ | (0.03 | ) |
FRC updated the report results, as its research initially hit pre-Q2.
- Q2-2022 revenue jumped 64% YoY (Q1 revenue was up 30% YoY) and was 2% higher than our estimate.
- Note that Q2 and Q3 are historically weaker quarters due to seasonality.
- Due to more substantial revenue, gross margins improved YoY (18% to 30%).
- EBITDA was up YoY from $0.14M to $1.02M and 4% higher than our estimate.
- Oil prices have pulled back from their highs in March 2022 but are still up 40% YoY.
- FRC has a positive outlook on oil prices as we are expecting a prolonged period of conflict between the West and East.
- FRC is raising its 2022 revenue and EBITDA projections.
Oil and Gas will be volatile given events in Europe and issues with green energy. Companies like Enterprise and others in its space will become more relevant as drilling increases to meet the demand that is still apparent both from a supply and technology perspective.
There’s lots more to Enterprise as a growth story, a proxy for the resource sector and a leader in cutting-edge technologies to address climate and emission issues.
Enterprise’s historical revenue (2014-2022) has been strongly correlated to oil prices. During 2014-2022, Enterprise revenue increased/decreased by 0.8% for every 1% change in oil prices.
More to come. Lots more, including the shares at CDN$0.40, are trading well below its asset value of nearly CDN$0.65
Next time we’ll look at Enterprise’s new division Evolution Power (EPP) and the massive rise in resource sector Capex spending.
EPP Teaser: EPP is the leading provider of low emission, portable power systems and associated surface infrastructure to the Energy, Resource, and Industrial sectors. The company’s highly innovative methods are delivering its client’s low emission natural gas-powered systems and micro-grid technology, allowing clients to eliminate diesel. EPP’s systems are equipped to deliver real-time emission metrics providing its clients with the assurances necessary for them to accomplish their ESG reporting and objectives. (PR August 11th)
And you have to love the chart, given the markets’ volatility of late.
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