Energy Services of America CORP (NASDAQ: ESOA)

Sector: Industrials Industry: Engineering & Construction CIK: 0001357971
Market Cap 155.87 Mn
P/B 2.63
P/E 410.50
P/S 0.38
ROIC (Qtr) 2.26
Div Yield % 1.46
Rev 1y % (Qtr) 24.28
Total Debt (Qtr) 74.25 Mn
Debt/Equity (Qtr) 1.25

About

Energy Services of America Corporation (ESOA), a prominent player in the contractor and service industry, primarily operates in the mid-Atlantic and central regions of the United States. The company's services span across various industries, including natural gas, petroleum, water distribution, automotive, chemical, and power. ESOA's operations are divided into three main segments: Electrical, Mechanical, and General Contract Services; Gas and Petroleum Transmission Projects; and Gas and Water Distribution Services. The Electrical, Mechanical,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 200.45M provides 2.70x coverage of total debt 74.25M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 4.14M provides strong 39.36x coverage of stock compensation 105119, indicating sustainable incentive practices.
  • Tangible assets of 200.45M provide exceptional 7.08x coverage of deferred revenue 28.32M, showing strong service capability backing.
  • Robust tangible asset base of 200.45M provides 4.27x coverage of working capital 46.94M, indicating strong operational backing.
  • Tangible assets of 200.45M provide robust 4.53x coverage of other current liabilities 44.24M, indicating strong asset backing.

Bear case

  • Operating cash flow of 4.14M barely covers its investment activities of (29.43M), with a coverage ratio of -0.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 4.14M provides thin coverage of dividend payments of (1.50M) with a -2.75 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 12.24M provide limited coverage of acquisition spending of (24.25M), which is -0.50x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 4.14M provides insufficient coverage of deferred revenue obligations of 28.32M, which is 0.15x, raising concerns about future service delivery capabilities.
  • Free cash flow of (1.04M) provides weak coverage of capital expenditures of 5.18M, with a -0.20 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Engineering & Construction
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PWR Quanta Services, Inc. 62.71 Bn 61.60 2.31 6.02 Bn
2 FER Ferrovial SE 48.08 Bn 14.25 5.05 -
3 FIX Comfort Systems Usa Inc 35.76 Bn 42.69 4.30 0.39 Bn
4 EME EMCOR Group, Inc. 29.29 Bn 25.91 1.80 0.42 Bn
5 APG APi Group Corp 17.37 Bn 111.36 2.27 3.05 Bn
6 MTZ Mastec Inc 17.01 Bn 51.39 1.24 2.77 Bn
7 J Jacobs Solutions Inc. 16.94 Bn 58.56 1.41 2.71 Bn
8 BLD TopBuild Corp 13.35 Bn 23.52 2.55 3.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.94 1.61
EV to Cash from Ops. EV/CFO 48.83 6.94
EV to Debt EV to Debt 2.72 11.81
EV to EBIT EV/EBIT 49.58 17.80
EV to EBITDA EV/EBITDA 11.72 13.77
EV to Free Cash Flow [EV/FCF] EV/FCF -194.54 55.77
EV to Market Cap EV to Market Cap 1.30 1.20
EV to Revenue EV/Rev 0.49 1.65
Price to Book Value [P/B] P/B 2.63 5.81
Price to Earnings [P/E] P/E 410.50 35.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.25 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 450.00 25.81
Dividend per Basic Share Div per Share (Qtr) 0.09 0.24
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -145.16 4.05
Interest Coverage Int. cover (Qtr) 1.27 80.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 32.76 -166.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.30 637.72
Dividend Growth (1y) % Div 1y % (Qtr) 200.00 5.87
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -93.31 92.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -40.16 8.04
EBIT Growth (1y) % EBIT 1y % (Qtr) -88.59 85.34
EBT Growth (1y) % EBT 1y % (Qtr) -97.42 42.07
EPS Growth (1y) % EPS 1y % (Qtr) -98.68 43.76
FCF Growth (1y) % FCF 1y % (Qtr) -109.46 -20.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -22.38 32.46
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.91 1.14
Cash Payout Ratio Cash Payout (Qtr) 0.16 0.05
Cash Ratio Cash Ratio (Qtr) 0.12 0.38
Current Ratio Curr Ratio (Qtr) 1.48 1.55
Debt to Equity Ratio Debt/Equity (Qtr) 1.25 0.89
Interest Cover Ratio Int Coverage (Qtr) 1.27 80.15
Times Interest Earned Times Interest Earned (Qtr) 1.27 80.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.20 0.40
EBIT Margin % EBIT Margin % (Qtr) 0.99 -2.31
EBT Margin % EBT Margin % (Qtr) 0.21 -4.59
Gross Margin % Gross Margin % (Qtr) 9.40 20.38
Net Profit Margin % Net Margin % (Qtr) 0.10 -5.96