Energy Services of America Corporation Common Stock (ESOA)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Generates $7 million in annual free cash flow (2.5% yield on market cap)

Concerns

• Trades significantly above Graham Number ($3) with negative 384% margin of safety—limited downside protection

AI Analysis

Energy Services of America Corporation Common Stock is a micro-cap industrials company valued at $295 million. The business generates $424 million in annual revenue with a 0.6% net margin and $7 million in free cash flow. From a quality standpoint, Energy shows Altman Z-Score of 2.1 in the grey zone and modest 4% ROE. On valuation, the stock is commanding a steep 121.0x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 13.4% and profit growth of 216.9%. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $7 million in annual free cash flow (2.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 121x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer