Enterprise Group Inc. (OTCMKTS: ETOLF) offers specialized equipment and services to the energy and construction industries. The Canada-based company primarily likes to call itself a consolidator of energy services, focusing on technologies that eliminate or reduce greenhouse gas emissions.
Despite persistent macroeconomic instability, the company’s shares have gained decent value in recent months. Enterprise Group stock jumped over 40 percent during the past 12 months and about +30 percent so far in 2022.
Financial Performance
Enterprise Group has been continuously improving its financial performance on both sequential and yearly basis. Last month, the company announced solid financial results for the first quarter, which ended March 31, 2022.
The company posted revenue of $7.63 million, representing a jump of 30 percent over the linked quarter of 2021. Its adjusted gross margin also skyrocketed 83 percent to $3.52 million in the quarter.
Enterprise Group is also generating a decent cash flow from operations. Its cash flow for the first quarter stood at $2.68 million, a substantial improvement from $1.39 million in the year-ago quarter. The company is primarily using that capital to modernize its equipment portfolio.
Meanwhile, the company continues to expand its Tier One client base. Enterprise Group currently serves a group of more than 20 Tier One clients, on top of several resource customers of varying capacities.
Reducing Carbon Footprint
Canada’s environmental watchdog has been calling to minimize greenhouse gas emissions in all sectors, including energy. As a result, Enterprise Group is coming up with new equipment that directly addresses those emissions. The company is also working on innovative technologies to help its clients minimize their carbon footprint.
Bottomline
Industry experts expect steady improvement in capital spending in the energy sector that will benefit Enterprise Group in the near future. Moreover, increasing drilling activity in the oil and gas sector would raise the demand for Enterprise Group’s services and equipment.
