Enterprise Group Inc T.E

Can Enterprise Group share price double?

[laurencelefou]

Revenue growth trajectory is positive.

Quarterly year over year (YOY) revenue growth are

Q1 2022 - 30% YOY
Q4 2021 - 48% YOY
Q3 2021 - 56% YOY
Q2 2021 - 50% YOY

Enterprise Group had several quarters to prepare for an increase in demand.

For the quarter ended March 2022, earnings per share was $0.04 or $1,678,000.  Better pricing and tighter operations resulted in better margins.  Can Enterprise Group earn $0.10 to $0.15 per share for fiscal year 2022?   What multiple should a company with a $0.10 earnings per share have?  A multiple of 10 would suggest a share price of $1.00.

Q2 is typically a slow quarter, because it is harder to get heavy equipment to site because of thawing and road conditions.  Outlook for quarters Q3 and Q4 are promising due to positive drilling forecast.

As of Q1, total receivables less than 90 days old were $6,107,976.  Enterprise Group will likely collect most of these receivables during Q2.
 
Extract from the MDA March 2022.

Enterprise’s outlook for the remainder of 2022 is positive.  The Company anticipates its customers will continue to increase their drilling and completion activity as industry fundamentals continue to improve. The Company also sees new opportunities for its natural gas power solutions as the energy industry continues its search for lower carbon emission alternatives.
 
As of 2022-06-30, there were 157 drilling sites operating in Canada compared to 142 in June 2021, 16 in June 2020 and 114 in June 2019.
 
https://boereport.com/caodc-rig-count/

[Stuckinsand]

That is indeed a very good question, can E double! Regardless of the company or industry many factors have to align. We need a strong economy, the "right" assets and skilled management. To assess if E is indeed on the right path to reward shareholders reverse the stock buy back and recalculate your metrics and determine how the company compares to peers and the TSX Energy index.

[jcw604]

It is a service company. Their performance is expected to lack the market, especially, it is a general trend of the industry to slow in capex, despite strong profits because of the policies of the Biden administration. The energy sector is unsure if it has a future, and it is reluctant to invest.

[Stuckinsand]

JCW did a nice risk assessment. All very strong points, all support E is not a play to double your investment. I guess we can all assume Alberta and Canada wont sell any oil to markets other than the US, if this is true why are we building a pipeline to coastal waters, I had assumed it was to sell oil to new markets. I thrilled that I was corrected and taking my money elsewhere.