Enservco Story

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ENSV -- USA Stock  

USD 0.14  0.03  17.65%

While many traders are getting carried away by overanalyzing energy space, it is reasonable to focus on Enservco. Why are we still confident in anticipation of a complete recovery. Is the firm operations in 2020 sustainable? Here we are going to cover Enservco perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Enservco (NYSEMKT:ENSV) price increase in September 2020?
The company currently holds 41.38 M in liabilities with Debt to Equity (D/E) ratio of 663.8, indicating Enservco may have difficulties to generate enough cash to satisfy its financial obligations. We provide trade advice to complement the prevailing expert consensus on Enservco. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Enservco using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Enservco based exclusively on its fundamental and basic technical indicators. By analyzing Enservco's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Enservco's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Enservco. We calculate exposure to Enservco's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Enservco's related companies.

Watch out for price decline

Please consider monitoring Enservco on a daily bases if you are holding a position in it. Enservco is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Enservco stock to be traded above the $1 level to remain listed. If Enservco stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Enservco Investment Alerts

Enservco investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Enservco performance across your portfolios.Please check all investment alerts for Enservco

Enservco Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Enservco value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Enservco competition to find correlations between indicators driving the intrinsic value of Enservco.

How Enservco utilizes its cash?

To perform a cash flow analysis of Enservco, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Enservco is receiving and how much cash it distributes out in a given period. The Enservco cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Enservco Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Enservco reported Net Cash Flow from Operations of 4.47 Million in 2019

A Deeper Perspective

Enservco reported the previous year's revenue of 27.6 M. Net Loss for the year was (13.55 M) with profit before overhead, payroll, taxes, and interest of 8.42 M.
 2017 2018 2019 2020 (projected)
Interest Expense2.26 M2.23 M2.56 M2.09 M
Gross Profit8.5 M9.28 M10.67 M10.59 M

Margins Breakdown

Enservco profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Enservco itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Enservco profit margins.
EBITDA Margin0.0277
Gross Margin0.2
Profit Margin(0.13)


Enservco Earnings before Tax is fairly stable at the moment. Also, Enservco Average Assets is fairly stable at the moment.

Will Enservco continue to go out of control?

The jensen alpha is down to -0.3 as of today. As of the 14th of August 2020, Enservco shows the Coefficient Of Variation of 2882.82, mean deviation of 5.49, and Downside Deviation of 7.83. Enservco technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Enservco, which can be compared to its rivals. Please confirm Enservco variance and potential upside to decide if Enservco is priced favorably, providing market reflects its regular price of 0.16 per share. As Enservco appears to be a penny stock we also advise to verify its total risk alpha numbers.

Our Final Perspective on Enservco

While other companies under the oil & gas equipment & services industry are still a bit expensive, Enservco may offer a potential longer-term growth to sophisticated investors. The inconsistency in the assessment between current Enservco valuation and our trade advice on Enservco is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Enservco.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Enservco. Please refer to our Terms of Use for any information regarding our disclosure principles.

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