Very Good Sign for E

WTI Crude Oil is up by 3.51% today to a new nine-month high of $47.12 per barrel. A rising oil price is a best case scenario for Enterprise Group (TSX: E). We previously explained how E has many of the same clients in Alberta and British Columbia as the NYSE traded company Civeo (CVEO). Today, CVEO is up by 3.85% to $16.45 per share.

CVEO is now trading for 1.25X its tangible book value of $13.12 per share. E has a tangible book value of $0.747 per share. That same multiple would value E today at $0.934 per share or 281.22% above E's closing price yesterday of $0.245 per share!

Last quarter, E's trailing twelve month (TTM) gross profit margin reached a near six-year high of 29.23% while CVEO's TTM gross profit margin reached a near all-time low of 29.12%. For the first time in history, E's TTM gross profit margin is now higher than CVEO!

The last time that E had a higher TTM gross profit margin than it does today was at year-end 2014 when E's TTM gross profit margin was 30.86%. E at year-end 2014 was trading for 1.01X its tangible book value, which would currently value E at $0.754 per share or more than triple E's closing price yesterday of $0.245 per share!

E finished last quarter with a cash position of $2.644 million, which is E's largest cash position of the past five years! E's cash/market cap ratio is now 3.62X higher than CVEO!

E generated positive EBITDA over the TTM period of $2.303 million, which is E's highest EBITDA in over two years! CVEO reported negative EBITDA over the TTM period of ($45.22 million). There is no possible way to justify CVEO trading at a higher price/tangible book value ratio than E!

E's share price has a lot of catching up to do in the weeks ahead!

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.