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Fundamental analysis ESI.TO (Ensign Energy Services Inc.)

Updated on 09/16/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Ensign Energy Services stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 3/10, meaning low quality, and a P/FCF valuation multiple of 5.3×.

Ensign Energy Services trades at a low free cash flow multiple but fails part of our quality criteria. Mind the trap: a low price is not a discount if the business is deteriorating. The low multiple may simply reflect a real problem.

Sector: Oil & Gas Drilling. Listing: TO. Current price: 3.92 CAD.

Lubin scoring methodology

Ensign Energy Services Inc. (ESI.TO)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

The 10 quantitative criteria analyzed

  1. Profitable: net margin > 5%
  2. Growing revenue: revenue growing > 10%/year over 5 years
  3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
  4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
  5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
  6. Expanding margins: operating margin widens over 5 years (operating leverage)
  7. Return on invested capital: Cash ROCE > 15% per year
  8. Debt under control: net debt repayable in less than 3 years of free cash flow
  9. Earnings converted to cash: free cash flow exceeds accounting net income
  10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Oil & Gas Drilling stocks we have scored, Ensign Energy Services trades at 5.3× its free cash flow, versus a median of 20.5× for that basket. On price alone, Ensign Energy Services is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Ensign Energy Services a quality stock?

Ensign Energy Services gets a quality score of 3/10 (low quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Ensign Energy Services's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Ensign Energy Services's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Ensign Energy Services stock is 5.3×. At Lubin Investment, valuation is judged separately from quality.

Where to see Ensign Energy Services's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/ESI.TO?lng=en.

Other stocks in the Oil & Gas Drilling sector

Go further

👉 See the full interactive analysis of ESI.TO

Other resources : All stocks in the Oil & Gas Drilling sector.