HUNTINGTON, W.Va. - Energy Services of America (OTC:ESOA) Corporation (NASDAQ: ESOA), a contractor and service company based in Huntington, has expanded its operations with the recent acquisition of Heritage Painting, LLC, a firm known for its industrial and commercial painting services in West Virginia and neighboring regions.
Heritage Painting, now a subsidiary of Energy Services, has established a presence in various sectors, including industrial, commercial, fabrication, oil, and gas industries. The company’s service offerings encompass a range of products such as fabricated pipe, large natural gas valves, commercial painting, and floor coatings.
Douglas Reynolds, President and CEO of Energy Services, expressed enthusiasm about the acquisition, highlighting Heritage Painting's commitment to exceptional customer service and an emphasis on safety, which aligns with Energy Services' core values. Reynolds sees the addition as a reinforcement of the company's dedication to these principles.
Energy Services of America Corporation, with a workforce exceeding 1,000 employees, primarily operates in the mid-Atlantic and Central regions of the United States. The company caters to a diverse customer base across the natural gas, petroleum, water distribution, automotive, chemical, and power industries. Safety, quality, and production stand as the foundational values of Energy Services.
The acquisition is part of Energy Services' strategy to broaden its service portfolio and strengthen its market position in the region. The financial terms of the acquisition have not been disclosed.
InvestingPro Insights
In light of Energy Services of America Corporation's (NASDAQ: ESOA) recent acquisition of Heritage Painting, LLC, it's worth noting some key financial metrics and insights from InvestingPro that may interest investors and industry observers. ESOA has demonstrated a robust financial performance with a significant revenue growth of 50.77% over the last twelve months as of Q2 2024. This growth is indicative of the company's expanding operations and could be further bolstered by the recent strategic acquisition.
Investors should note that ESOA's P/E ratio stands at 11.88, with an adjusted P/E ratio of 11.84 for the same period, suggesting a potentially attractive valuation relative to earnings. Additionally, the company's impressive one-year price total return of 158.3% reflects a strong market confidence, likely stemming from consistent operational success and strategic initiatives such as the latest acquisition.
From the perspective of InvestingPro Tips, ESOA has a perfect Piotroski Score of 9, which is a strong indicator of the company's financial stability and sound operational efficiency. While the company does suffer from weak gross profit margins, currently at 12.51%, this could be an area of focus for improvement post-acquisition. On the positive side, ESOA has exhibited a strong return over the last five years, which could signal a promising outlook for the company's future performance.
For those interested in a deeper analysis, InvestingPro offers additional tips for ESOA, which can be accessed at: https://www.investing.com/pro/ESOA. There are currently 5 more InvestingPro Tips available, which could provide valuable insights for evaluating the company's potential. Readers looking to take advantage of these insights can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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