Enterprise Group (E.TO), a consolidator of services that included specialized equipment rental to the energy/resource sector, released great earnings. The company s very thrilled as the first quarter has been one of the strongest quarters in recent years. The company has constantly been growing over the last couple of months, and the next ones could be very exciting. The stock price is currently 65% up Year-over-Year. Enterprise Group provides specialized equipment and services in the build-out of infrastructure for energy, pipeline, and construction industries. The company has a strong presence across Western Canada with a concentration in Alberta and Northeastern British Columbia.
The company released on May 13th strong earnings:
About the share structure, the company has 47M shares outstanding. Enterprise group also has 4,8M options at a weighted average exercise price of $0.18 and doesn’t have any warrants. It is very positive for investors because they should not see any dilution
Enterprise Group’s stock price is currently traded at $0.40 for a $19M market cap. It is up 65% Year-over-Year, and it’s close to its 52-weeks high of $0.42 reached on May 3rd, 2022. Both its moving averages are up, meaning the chart is on an uptrend. Its Simple MA (20) is at $0.36, while its Simple MA (200) is $0.31. Its chart pattern is also very bullish. Indeed 17 technical events show a bullish stock price with a $0.43-$0.45 price target versus only five bearish events, meaning investors are optimistic for the short, intermediate, and long term. Moreover, the Bollinger Bands indicate that we could see daily-stock prices between $0.32 to $0.40, with $0.40 being the resistance level.
Its volume increased steadily weeks after weeks, with a 10-days ADV of 100k versus a 50-days ADV of 50k. More and more investors start to realize the company’s potential and what return the company could give if investors get stakes. Recently, the daily average volume even went above 200k.
If we discuss its fair valuation, Quant Report gives E.TO a fair value of $0.67, or a direct 67% upside. Yahoo Finance is even more optimistic, with a 1-year return of $0.96. If we check its Price/Sales ratio, this data is also shallow. With a 0.95 P/S ratio, it is very positive. Even if Enterprise’s Group ratio is higher than the average sector’, it can be explained because many catalysts are happening to the company, including the share buyback program, strong earnings with a $0.04 earnings per share, and the great fundamentals of the company have.
Many finance media realized the company’s potential and covered Enterprise Group. Amongst them, we can highlight
Simply Wall Street that says:
Enterprise Group (E.TO) is a silent multi-bigger. The company initiated many catalysts, including a share-buyback program, solid earnings, and fundamentals. The stock price doesn’t know the general downtrend affecting many stocks traded on minor exchanges. With its volume increasing, it shows investors waited for the storm to pass and are now ready to jump in E.TO. It is one of the very few stocks to show very positive sentiment. Many experts are convinced the current stock price is considered undervalued. Quant Report, Yahoo Finance, and the board members explained the company’s market cap should be valued way higher. Enterprise Group is the perfect fit between emerging stock and a hot sector involvement with investors eying commodity stocks.
This article solely expresses the opinion of the writer which might be disagreeing with the other writers of BFN News. Moreover, the writer is not involved in E, and does not own shares of the Company.