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Enservco Corp (ENSV)
OTHER OTC:ENSV
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Enservco
(OTC:ENSV)
39Underperform
Enservco (ENSV) vs. S&P 500 (SPY)
Market Cap
$2.21M
Dividend YieldN/A
Average Volume (3M)58.48K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth8.77%
EPS Growth65.15%
CountryUS
Employees86
SectorEnergy
Sector Strength84
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.17
Shares Outstanding58,182,785
10 Day Avg. Volume49,877
30 Day Avg. Volume58,484
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.07
Price to Cash Flow (P/CF)-0.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Enservco Business Overview & Revenue Model
Company DescriptionEnservco Corporation, through its subsidiaries, provides well enhancement and fluid management services to the onshore oil and natural gas industry in the United States. It offers frac water heating, hot oiling, pressure testing, acidizing, and water hauling, as well as well site construction services. The company owns and operates a fleet of approximately 318 specialized trucks, trailers, frac tanks, and other well-site related equipment. It operates in the eastern United States region comprising the southern region of the Marcellus Shale formation and the Utica Shale formation in eastern Ohio; Rocky Mountain region consisting of western Colorado and southern Wyoming, central Wyoming, western North Dakota, and eastern Montana; and the Central United States region, including Eagle Ford Shale and East Texas Oilfield in Texas. Enservco Corporation was incorporated in 1980 and is headquartered in Longmont, Colorado.
How the Company Makes MoneyEnservco makes money through its comprehensive suite of well-site services designed to support the onshore oil and gas industry. The company's primary revenue streams are derived from frac water heating, which is essential for hydraulic fracturing operations, and hot oiling services, which help in maintaining the flow of oil through pipelines by preventing paraffin buildup. Enservco's revenue is heavily reliant on the level of oil and gas exploration and production activities, which are influenced by commodity prices. Additionally, Enservco may have significant partnerships with major oil and gas exploration companies, which contribute to consistent demand for its services. Seasonal demand fluctuations, particularly in colder weather when frac water heating is critical, also impact the company's earnings.
Enservco Financial Statement Overview
Summary
Enservco faces significant financial challenges, including high leverage, consistent net losses, and cash flow difficulties. While there are signs of operational improvement, the company must focus on enhancing profitability, reducing debt levels, and improving cash flow stability to ensure sustainable growth in the fossil fuels industry.Income Statement
Enservco's income statement shows improvement in gross profit from negative to positive over the TTM, indicating potential operational enhancements. However, persistent net losses and negative EBIT and EBITDA margins highlight ongoing profitability challenges. Revenue growth is moderate, but the company needs to address its cost structure to achieve sustainable profitability.45
Neutral
Balance Sheet
The balance sheet reveals a high debt level relative to equity, with a negative debt-to-equity ratio in earlier years that improved over time, though still indicating financial leverage risks. Stockholders' equity has improved but remains low, and the equity ratio is weak, suggesting financial instability. The company needs to strengthen its equity base to mitigate potential financial risks.30
Negative
Cash Flow
Cash flow statements indicate significant cash flow challenges, with negative operating and free cash flows. Although there is some improvement in free cash flow growth, the company struggles to generate cash from operations relative to its net income. Improving cash flow sustainability is crucial for future financial health.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 24.02M | 22.06M | 21.64M | 15.34M | 15.68M | 43.03M | Gross Profit |
| 6.81M | -1.37M | -2.93M | -7.22M | -6.81M | 2.73M | EBIT |
| -2.10M | -6.60M | -8.41M | -11.41M | -12.74M | -3.59M | EBITDA |
| -1.02M | -2.79M | 835.00K | -3.17M | 5.42M | 3.94M | Net Income Common Stockholders |
| -5.73M | -8.52M | -1.90M | -8.04M | -2.40M | -5.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 257.00K | 201.00K | 35.00K | 149.00K | 1.47M | 663.00K | Total Assets |
| 49.02M | 13.87M | 19.84M | 25.15M | 30.18M | 42.98M | Total Debt |
| 40.04M | 9.43M | 13.04M | 16.65M | 25.57M | 41.04M | Net Debt |
| 39.79M | 9.22M | 13.01M | 16.50M | 24.10M | 40.38M | Total Liabilities |
| 44.42M | 14.44M | 18.67M | 19.81M | 27.63M | 45.65M | Stockholders Equity |
| 4.60M | -572.00K | 1.17M | 5.34M | 2.56M | -2.68M |
| Cash Flow | Free Cash Flow | ||||
| -4.49M | -2.42M | -2.47M | -5.37M | -4.80M | 3.28M | Operating Cash Flow |
| -4.26M | -2.15M | -2.25M | -4.77M | -4.44M | 4.47M | Investing Cash Flow |
| 1.57M | 1.76M | 343.00K | -200.00K | 1.03M | -458.00K | Financing Cash Flow |
| -2.12M | 551.00K | 1.79M | 3.66M | 4.22M | -3.60M |
Enservco Technical Analysis
Positive
0.04
Price Trends
0.04
Positive
0.05
Negative
0.11
Negative
Market Momentum
>-0.01
Negative
53.98
Neutral
56.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENSV, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENSV.
Enservco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Performance Comparison
ENSV
Enservco
0.04
-0.19
-82.61%
HUSA
Houston American Energy
0.75
-0.68
-47.55%
MXC
Mexco Energy
7.72
-4.68
-37.74%
MARPS
Marine Petroleum
3.92
-0.15
-3.69%
MTR
Mesa Royalty
6.13
-4.56
-42.66%
TPET
Trio Petroleum Corp.
1.49
-1.11
-42.69%
Enservco Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: 33.33% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strategic acquisitions, improved financial footing, and positive future projections. However, there were some concerns regarding the current net loss and challenges in Production Services.Highlights
Improved Year-over-Year Performance
The second quarter results reflect a 39% improvement in adjusted EBITDA loss and a better operational and financial footing entering 2024.
Strategic Acquisitions and Transactions
Completed the acquisition of Buckshot Trucking, expected to be immediately accretive and generating strong year-round cash flow. Strategic agreement with Star Equity Holdings to enhance leadership and operational excellence.
Debt Reduction and Financial Improvement
Significant progress in reducing debt levels and enhancing the financial position. Net proceeds from asset sales used to pay down debt obligations.
Positive Outlook for 2024
Expecting materially improved financial results in the latter half of 2024 and into 2025, with strategic transactions poised to drive more predictable cash flow.
Growth in Hot Oiling Business
Hot oiling business continues to generate steady cash flow without pricing concessions, with plans for potential market expansion.
Lowlights
Revenue and Net Loss in Q2 2024
Second quarter revenue was $3.8 million, up slightly from the previous year, with a net loss of $2.3 million.
Challenges in Production Services
Lower revenue in Production Services, particularly in acidizing, due to relative activity levels.
Company Guidance
During the Enservco Q2 2024 earnings call, management highlighted several key metrics and strategic initiatives. They reported a 39% improvement in adjusted EBITDA loss compared to the previous year, reducing it to $700,000 from $1.1 million. The company achieved a second-quarter revenue of $3.8 million, slightly up from the previous year, with a net loss of $2.3 million or $0.08 per diluted share, an improvement from the $2.6 million or $0.12 loss per share in 2023. Enservco has been focused on repositioning its business to reduce reliance on seasonal services, exemplified by their exit from the North Dakota frac water heating market and their acquisition of Buckshot Trucking, which is expected to generate $9.5 million in annual revenue and over $2 million in EBITDA. They also emphasized efforts to enhance margins, improve market share, and regain compliance with NYSE American listing standards through various strategic transactions, including a partnership with Star Equity Holdings.Enservco Corporate Events
Executive/Board ChangesPrivate Placements and Financing
Enservco Faces Financial Default and Leadership Changes
Negative
Dec 13, 2024
Enservco Corporation has received a Notice of Event of Default & Demand from Star Equity Holdings regarding a $1,000,000 promissory note due to non-payment. This event may impact the company’s financial stability and stakeholder confidence. Additionally, the company has seen the resignation of Director Richard K. Coleman, Jr. and CFO Mark Patterson, which could affect its leadership continuity.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.