NIA's #1 Overall Pick for Remainder of 2020 Shares Outstanding: 49.8 million
Market Cap: $12.95 million (USD$9.68 million)
Cash: $1.3 million
Debt: $11.37 million
Enterprise Value: $23.02 million (USD$17.2 million)
Enterprise Group provides specialized equipment and services in the build out of infrastructure for the energy, pipeline, and infrastructure construction industries. The innovation and expertise of their operating companies have distinguished them as “best in class” to their many multibillion dollar clients.
Enterprise Group has repurchased 1.18 million shares so far in 2020, after repurchasing 4.17 million shares in 2019, 0.37 million shares in 2018, and 0.13 million shares in 2017. All together, Enterprise has repurchased 5.85 million shares since 2017, thereby reducing their shares outstanding by 10.512%. Insiders have also been buying big in the open market and have purchased 690,000 shares of Enterprise stock in 2020. Insiders now own 19.45 million shares or 39.05% of E's remaining shares outstanding of 49.8 million. This gives Enterprise a very small public float of 30.35 million shares currently worth only $7.891 million (USD$5.896 million).
Enterprise Group's 100% owned Artic Therm subsidiary owns a fleet of over 200 portable flameless heat units with output of between 500,000 and 3.3 million BTUs used in remote locations for a variety of applications. Enterprise Group's 100% owned Hart Oilfield Rentals owns a conventional and modular/combo rental equipment fleet of approximately 2,500 pieces of equipment designed to provide on-site infrastructure. Enterprise Group's 100% owned WESTAR Oilfield Rentals owns a fleet of more than 500 pieces of equipment and is a highly-regarded full-service oilfield site infrastructure company that fulfills multiple equipment rental needs.
Enterprise Group has a well-diversified client base across a variety of industries including oil/natural gas exploration & production, infrastructure construction, agriculture/farming, and gold exploration & mining.
Enterprise Group has many multibillion dollar publicly traded clients including: Tourmaline Oil (TRMLF): $3.38 billion market cap, Cenovus Energy (CVE): $4.767 billion market cap, Canadian Natural Resources (CNQ): $19 billion market cap, Sinopec (SHI): $4.18 billion market cap, Suncor Energy (SU): $18.893 billion market cap, and Husky Energy (HUSKF): $2.333 billion market cap. Another Enterprise client is Ledcor one of Canada's largest private construction companies.
Enterprise Group owns $78 million in property, plant, and equipment (at cost) or $46.352 million after depreciation. The company has shareholder equity of $38.809 million for a book value of $0.779 per share of which $0.778 per share is tangible. Enterprise is trading with a price/tangible book value ratio of only 0.33. The main reason for Enterprise trading 67% below its tangible book value is the company's unhealthy current ratio (current assets/current liabilities) of 0.51. Sometime between Monday and Wednesday of this week, we expect the company to announce a new long-term lending agreement with PNC Bank Canada, which will greatly reduce its current liabilities and give the company positive working capital and a very healthy current ratio, which we believe will allow it to immediately begin trading much closer to book value.
Enterprise Group's average equity raise has been at a price of $1.436 per share and the company has never raised capital at less than $0.40 per share. It won't take much volume for E to reach $0.40+ per share.