Although ENGlobal (ENG) has been News Block heavily to capitalize on new business opportunities, the company’s revenue declined in the last reported quarter. Also, since the company is not yet profiting, its shares appear highly overvalued at their current price level. Let’s take a closer look: Founded in 1985, ENGlobal Corporation (ENG), based in Houston, Texas, is a provider of energy and automation services operating across the Engineering, Procurement and Construction (EPCM) and automation in the United States and internationally. ENG shares have soared 193.6% over the past year on growing investor optimism about the outlook for the clean energy sector.
But as a result of operational restrictions caused by the COVID-19 pandemic, the company’s business development efforts were significantly hampered. ENG saw a 39.1% year-on-year decrease in business revenue in the first quarter of 2021, and its share price has fallen 28.1% in the last three months.
Although the company’s efforts to offer innovative Haldor Topsoe technology to its customers in the United States could expand its market reach significantly, its weak finances pose a significant risk to its prospects. ENG posted significant losses in its last reported quarter.
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