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Enterprise Group Inc (TSE:E)
TSX:E

Enterprise (E) AI Stock Analysis

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Enterprise

(TSX:E)

69Neutral
Enterprise Group shows a strong financial position and promising growth initiatives, bolstered by a recent credit facility and share buyback plan. However, technical analysis indicates bearish sentiment, suggesting caution. The company needs to address challenges in cash flow conversion to sustain long-term growth.

Enterprise (E) vs. S&P 500 (SPY)

Enterprise Business Overview & Revenue Model

Company DescriptionEnterprise Holdings, Inc. is a leading provider in the global transportation services sector, primarily known for its extensive rental car operations. The company operates the Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car brands, offering a comprehensive range of mobility solutions to customers worldwide. With a focus on exceptional customer service, Enterprise caters to both individual consumers and businesses, providing short-term and long-term rental options, corporate fleet management, and car sharing services.
How the Company Makes MoneyEnterprise makes money through its diversified portfolio of car rental services, primarily by generating revenue from daily and weekly vehicle rentals to both leisure and business travelers. It also earns income through its fleet management services, which provide customized vehicle solutions for businesses, including leasing and maintenance. Additionally, Enterprise capitalizes on its car sales division, selling vehicles from its rental and fleet management operations. Significant partnerships with airlines, hotels, and travel agencies, as well as business accounts with corporations, further enhance its revenue streams by driving customer traffic and securing recurring contracts.

Enterprise Financial Statement Overview

Summary
Enterprise is on a positive growth trajectory with strong revenue and profitability improvements. The balance sheet reflects a stable financial position with manageable leverage. Cash flow generation from operations is robust, although high capital expenditures pose some liquidity challenges. Overall, the company exhibits solid financial health with opportunities for optimizing cash flow management.
Income Statement
78
Positive
Enterprise has shown a positive revenue growth trend with a notable increase in total revenue from 2023 to TTM. The gross profit and net profit margins have improved significantly, reflecting enhanced profitability. The EBIT and EBITDA margins are also strong, indicating effective cost management and operational efficiency.
Balance Sheet
72
Positive
The company's balance sheet is robust with a favorable debt-to-equity ratio, indicating moderate leverage. The return on equity has improved, demonstrating efficient use of equity capital to generate profits. The equity ratio is healthy, reflecting a strong capital structure, though there is room for improvement in managing total liabilities.
Cash Flow
65
Positive
Enterprise's operating cash flow remains strong, surpassing net income, which highlights efficient cash generation from operations. However, the free cash flow is negative, indicating high capital expenditures, which could impact liquidity. The cash flow growth rates reflect fluctuations due to significant investment activities.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
36.43M33.50M26.89M18.73M15.52M19.52M
Gross Profit
12.93M10.50M10.88M6.63M5.19M5.04M
EBIT
8.99M7.93M3.39M-1.14M-2.49M-3.48M
EBITDA
14.78M12.92M8.27M4.67M2.39M1.67M
Net Income Common Stockholders
6.13M6.17M2.28M-2.38M-4.44M-5.04M
Balance SheetCash, Cash Equivalents and Short-Term Investments
869.91K3.79M1.06M876.54K783.62K969.05K
Total Assets
60.13M72.81M55.37M51.15M52.25M58.29M
Total Debt
8.85M25.70M15.51M14.80M13.69M13.27M
Net Debt
7.98M21.91M14.45M13.92M12.91M12.30M
Total Liabilities
14.51M32.01M20.59M18.93M17.24M18.03M
Stockholders Equity
45.62M40.80M34.79M32.22M35.01M40.26M
Cash FlowFree Cash Flow
-4.66M-1.58M341.82K-344.63K2.57M-1.87M
Operating Cash Flow
13.15M13.53M5.91M3.50M3.98M3.61M
Investing Cash Flow
-16.87M-14.29M-4.35M-2.47M-1.25M-4.45M
Financing Cash Flow
10.28M3.48M-1.37M-937.41K-2.92M937.00K

Enterprise Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.34
Price Trends
50DMA
1.66
Negative
100DMA
1.91
Negative
200DMA
1.84
Negative
Market Momentum
MACD
-0.09
Negative
RSI
46.53
Neutral
STOCH
72.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:E, the sentiment is Neutral. The current price of 1.34 is above the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.66, and below the 200-day MA of 1.84, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 72.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:E.

Enterprise Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSKEY
80
Outperform
C$9.77B20.0717.35%4.83%2.89%14.76%
TSENB
76
Outperform
$139.49B27.448.63%5.74%24.95%-17.19%
TSALA
76
Outperform
$11.93B20.507.32%3.00%-4.65%-14.19%
TSPPL
76
Outperform
C$31.00B17.7011.25%5.15%-19.86%0.18%
TSTRP
71
Outperform
$71.57B15.5016.85%5.21%5.31%61.02%
TSE
69
Neutral
C$103.89M15.517.38%3.42%-29.81%
55
Neutral
$7.10B3.56-6.61%5.99%-0.03%-51.71%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:E
Enterprise
1.34
0.23
20.72%
TSE:TRP
TC Energy
68.86
26.62
63.01%
TSE:ALA
AltaGas
40.03
10.71
36.54%
TSE:PPL
Pembina Pipeline
53.40
6.55
13.98%
TSE:ENB
Enbridge
64.01
17.94
38.95%
TSE:KEY
Keyera Corp.
42.62
8.55
25.10%

Enterprise Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Enterprise Group Secures $41 Million Credit Facility for Growth
Positive
Apr 7, 2025

Enterprise Group, Inc. has announced the finalization of a new $41 million senior secured credit facility with a Canadian Schedule 1 bank. This facility, which bears interest at a rate of up to prime + 2%, is intended for acquisitions, capital expenditures, and working capital. It is secured by a first charge on all company assets and subject to certain financial covenants. The credit facility is expected to provide Enterprise with the financial flexibility to support its growth plans, maintain operational efficiency, and ensure long-term stability in the evolving market landscape.

Spark’s Take on TSE:E Stock

According to Spark, TipRanks’ AI Analyst, TSE:E is a Neutral.

Enterprise Group shows strong financial health and strategic growth initiatives, supported by a share buyback plan. However, technical indicators suggest current bearish sentiment, and challenges in converting earnings to cash flow pose risks. The overall score reflects these mixed signals, emphasizing the need for cautious optimism.

To see Spark’s full report on TSE:E stock, click here.

Stock Buyback
Enterprise Group Announces Share Buyback Plan
Positive
Mar 31, 2025

Enterprise Group, Inc. has announced that the Toronto Stock Exchange has accepted its notice to commence a normal course issuer bid, allowing the company to purchase up to 5,624,649 of its common shares, representing 10% of its public float. This move, authorized by the company’s Board of Directors, is seen as beneficial to shareholders, providing an opportunity to acquire shares at attractive prices and making effective use of company funds. The issuer bid will be active from April 2, 2025, to April 1, 2026, with all purchased shares being canceled, potentially impacting the value of remaining shares.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Enterprise Group Reports Q4 2024 Results and Strategic Growth Plans
Positive
Mar 20, 2025

Enterprise Group, Inc. announced its Q4 2024 and full-year results, revealing lower-than-expected activities in Q4 but a significant recovery as 2025 began. The company is strategically positioned for future growth, particularly with plans to expand into the mining sector. Notable achievements include a five-year exclusivity agreement with FlexEnergy Solutions and a $28 million capital raise to support growth initiatives. Despite a decrease in Q4 revenue compared to the previous year, the company is optimistic about the demand for natural gas power generation systems and favorable market conditions in 2025.

Financial Disclosures
Enterprise Group to Announce 2025 Financial Results on March 20
Neutral
Mar 5, 2025

Enterprise Group, Inc. has announced that it will release its financial results for the fourth quarter and annual period of 2025 on March 20, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and strategic decisions in the energy services sector.

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.