ENGlobal Corporation (ENG) Stock: A Good Pick In The Service Space?

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ENGlobal Corporation (ENG) is making a move down in the market today. The company, focused on the service space, is presently trading at $0.91 after falling 0.00% so far in today’s session. In terms of service sector stocks, there are quite a few factors that have the potential to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories centered around ENG:

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May-30-19 12:50PM ENGlobal Corporation Granted 180-Day Extension by NASDAQ to Regain Compliance with Minimum Bid Price Rule
May-14-19 05:30AM You Might Like Energa SA (WSE:ENG) But Do You Like Its Debt?
May-13-19 09:00AM ENGlobal Reports First Quarter 2019 Results
Apr-29-19 09:25AM Do Insiders Own Lots Of Shares In ENGlobal Corporation (NASDAQ:ENG)?
Apr-09-19 09:15AM ENGLOBAL ANNOUNCES RECENT PROJECT AWARDS

Nonetheless, any time investors are making an investing decision, investors should take a look at far more than news, this is especially the case in the ever complex service space. Here’s what’s happening in regard to ENGlobal Corporation.

The Performance That ENG Investors Have Experienced

While a single session decline, like what we’re seeing from ENGlobal Corporation may lead to fear in some investors, that by itself should not be the reason for a decision to, or not to, invest in a company. It’s always smart to dig into trends experienced by the stock further out than a single trading session. In the case of ENG, below are the returns that investors have experienced:

  • Past Seven Days – Throughout the past 7 days, ENG has generated a change in value amounting to 12.21%.
  • Past 30 Days – The return from ENGlobal Corporation over the last 30 days works out to 16.67%.
  • Quarterly – In the past 3 months, the stock has generated a return on investment that comes to 13.75%
  • Bi-Annually – Throughout the previous 6 months, we’ve seen a performance of 12.33% from the company.
  • Year To Date – Since the close of last year ENG has generated a return of 59.62%.
  • Full Year – Lastly, throughout the last full year, we’ve seen performance that comes to -34.53% out of ENG. Throughout this period, the stock has traded at a high of -35.92% and a low of 89.58%.

Ratios To Watch

Looking at a few key ratios associated with a company can give traders an understanding of just how risky and/or rewarding a stock pick might be. Here are some of the key ratios to think about when looking at ENG.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. The higher this short ratio, the more investors believe that the price of the stock is going to go down. Throughout the sector, strong service sector stocks tend to have a lower short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, as it relates to ENGlobal Corporation, the stock’s short ratio is 0.61.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure whether or not a company can cover its debts as they mature with only current assets or quick assets. come with positive current and quick ratios. As it relates to ENG, the quick and current ratios add up to 0 and 2.50 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the price of shares. In this particular case, that ratio is 0.53.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. When it comes to ENG, the cash to share value comes to 0.27.

Big Money And ENGlobal Corporation

An interesting fact I have come to understand so far in my brief time in existence is that smart money tends to follow the moves made by big money players. In general, investors that want to keep their investments relatively safe will watch moves made by institutional investors and insiders. So, what does the big money picture look like when it comes to ENG? Here’s the information:

  • Institutions – At the moment, institutional investors own 24.10% of the company. However, it’s worth mentioning that the ownership held by institutions has changed in the amount of -5.60% in the last 3 months.
  • Insiders – as it relates to insiders, those close to the company currently hold 0.20% of the company. Insider ownership of the company has seen a change of 0.00% throughout the past quarter.

What Analysts Say About ENGlobal Corporation

Although it’s rarely a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their opinions when validating your own opinions before making an investment decision in the service space. Below are the most recent moves that we have seen from analysts with regard to ENG.

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Aug-21-12 Downgrade KeyBanc Capital Mkts Buy → Hold
Mar-17-09 Reiterated Lazard Capital Mkts Buy $7 → $6
Sep-26-08 Initiated KeyBanc Capital Mkts Hold
Aug-08-08 Reiterated Lazard Capital Buy $16 → $20
Aug-08-08 Reiterated Jesup & Lamont Buy $14.50 → $17

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, ENG has generated revenue in the amount of $-20.40% with earnings coming in at -19.70%. On a quarter over quarter basis, earnings have seen movement of 18.60% and revenue has seen movement of -7.60%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 27.44M shares of ENGlobal Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, ENG has a float of 12.96M.

I also like to pay attention to the short percent. After all, when a high portion of the float is shorted, the overall opinion among investors is that the company is going to fall hard. As far as ENG, the percentage of the float that is currently being sold short sits at 0.29%. Most investors would say that a high short percent of the float is anything over 40%. Nonetheless, I have found that anything over 26% is generally a play that comes with hefty risk.

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