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  5. E: I saw a big correction on this stock Enterprise Group Inc. [Enterprise Group Inc.]
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Q: I saw a big correction on this stock Enterprise Group Inc.

What is their business model. Are they cash flow positive. Can their business model last over 10 years. Do you see the company start a buy back program and dividend.

In advance, thank you for taking your time to answer my questions.
Asked by Norwood on April 01, 2025
5i Research Answer:

Enterprise is a consolidtor of specialized equipment rental services, mostly serving the energy and resource sectors in western Canada. It is a small ($105M market cap) company with a decent forward P/E of 14X. Its price recently witnessed a large one-day decline following its earnings release, and several analysts cut their price targets on the name. It just announced a buyback program for up to 5.62 million shares from April 2 for one year. It is not cash flow positive, but it is profitable and has a good balance sheet with a solid cash balance of $34.1M. Sales growth has been good, and certain profit metrics are moving in the right direction, but it is a small company, and so while we think it has staying power, it is much less certain than a larger peer, like TIH. We do not believe E will initiate a dividend.