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!
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