Enterprise Group, Inc.
Q4 Disappointing, 2025 Recovery Anticipated
Published: 3/28/2025
Author: FRC Analysts
Sector: Energy | Industry: Oil & Gas Equipment & Services
Ticker Symbols:E.TO - TSX 🔹ETOLF - NASDAQ 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $1.32 |
| Fair Value | CAD $2.3 |
| Risk | 3 |
| 52 Week Range | CAD $0.84-2.69 |
| Shares O/S (M) | 78 |
| Market Cap. (M) | CAD $102 |
| Current Yield (%) | N/A |
| P/E (forward) | 10.8 |
| P/B | 1.2 |
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Report Highlights
⭐️ Enterprise Group Inc. is an FRC Top Pick ⭐️
- Q4-2024 revenue was down 19% YoY, and as a result, 2024 revenue was up just 3% YoY, missing our estimate by 8%, despite posting 12% YoY growth for 2024-9M.
- With expenses outpacing revenue growth, EPS fell from $0.12 to $0.07 vs our forecast of $0.10.
- Management attributed the revenue decline to an unexpected slowdown in client activity, primarily driven by lower oil prices. Additionally, the delay of the Kitimat, B.C., LNG plant, a critical coastal project for shipping Canadian natural gas globally, from mid-2024 to mid-2025, has led several gas producers to postpone their drilling plans.
- On a positive note, management noted a significant increase in activity in Q1-2025, fueled by higher gas prices, and the resumption of drilling by several clients. In Q4, E closed a $29M boug
