Is Calfrac Well Services Ltd. (TSE:CFW) Trading At A 42% Discount?
Aug 17
Canadian (TSX) Energy Services Industry Analysis
UpdatedSep 21, 2023
DataAggregated Company Financials
Companies29
- 7D-0.8%
- 3M28.1%
- 1Y35.4%
- YTD14.5%
In the last week, the Energy Services industry is flat overall, with Calfrac Well Services standing out by going down 5.0%. The past year has been better, since the industry has gained 35% in that time. Earnings are forecast to grow by 25% annually.
Industry Valuation and Performance
Has the Canadian Energy Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Sep 2023 | CA$13.7b | CA$27.1b | CA$1.2b | 8.6x | 11.4x | 0.5x |
| Sat, 19 Aug 2023 | CA$12.9b | CA$27.1b | CA$1.2b | 7.9x | 10.7x | 0.5x |
| Mon, 17 Jul 2023 | CA$12.3b | CA$26.3b | CA$1.1b | 7.5x | 11.1x | 0.5x |
| Wed, 14 Jun 2023 | CA$11.3b | CA$26.3b | CA$1.1b | 7x | 10.2x | 0.4x |
| Fri, 12 May 2023 | CA$11.0b | CA$25.8b | CA$990.6m | 8x | 11.1x | 0.4x |
| Sun, 09 Apr 2023 | CA$11.5b | CA$24.2b | CA$656.9m | 8.9x | 17.4x | 0.5x |
| Tue, 07 Mar 2023 | CA$13.1b | CA$24.1b | CA$578.2m | 10.4x | 22.7x | 0.5x |
| Thu, 02 Feb 2023 | CA$13.9b | CA$22.3b | CA$253.5m | 12.5x | 54.7x | 0.6x |
| Sat, 31 Dec 2022 | CA$13.2b | CA$22.3b | CA$253.5m | 13.4x | 52.1x | 0.6x |
| Mon, 28 Nov 2022 | CA$13.4b | CA$22.2b | CA$242.6m | 12.8x | 55.4x | 0.6x |
| Wed, 26 Oct 2022 | CA$11.7b | CA$19.4b | -CA$156,837,204.00 | 13x | -74.3x | 0.6x |
| Fri, 23 Sep 2022 | CA$10.1b | CA$19.4b | -CA$156,837,204.00 | 12.2x | -64.6x | 0.5x |
| Sun, 21 Aug 2022 | CA$10.7b | CA$19.4b | -CA$127,533,279.00 | 12.7x | -84.1x | 0.6x |
| Tue, 19 Jul 2022 | CA$9.4b | CA$16.5b | -CA$472,639,277.00 | 15x | -20x | 0.6x |
| Thu, 16 Jun 2022 | CA$11.4b | CA$16.5b | -CA$472,639,277.00 | 18.4x | -24.2x | 0.7x |
| Sat, 14 May 2022 | CA$11.2b | CA$16.5b | -CA$475,794,544.00 | 19.1x | -23.5x | 0.7x |
| Mon, 11 Apr 2022 | CA$11.2b | CA$14.4b | -CA$603,277,302.00 | 14.5x | -18.5x | 0.8x |
| Wed, 09 Mar 2022 | CA$10.3b | CA$14.3b | -CA$356,847,302.00 | 11.7x | -28.9x | 0.7x |
| Fri, 04 Feb 2022 | CA$9.5b | CA$13.0b | -CA$206,228,038.00 | 11.6x | -46x | 0.7x |
| Sun, 02 Jan 2022 | CA$8.5b | CA$13.0b | -CA$206,002,272.00 | 13.5x | -41.3x | 0.7x |
| Tue, 30 Nov 2021 | CA$8.6b | CA$13.0b | -CA$193,784,873.00 | 12.4x | -44.5x | 0.7x |
| Thu, 28 Oct 2021 | CA$9.3b | CA$11.3b | -CA$359,964,515.00 | 13.6x | -25.9x | 0.8x |
| Sat, 25 Sep 2021 | CA$7.9b | CA$11.2b | -CA$350,199,515.00 | 12.6x | -22.4x | 0.7x |
| Mon, 23 Aug 2021 | CA$7.1b | CA$11.2b | -CA$353,548,483.00 | 12.2x | -20.1x | 0.6x |
| Sat, 10 Jul 2021 | CA$7.5b | CA$11.2b | -CA$353,548,483.00 | 13.1x | -21.3x | 0.7x |
| Fri, 02 Apr 2021 | CA$6.3b | CA$10.4b | -CA$758,944,797.00 | 18.2x | -8.2x | 0.6x |
| Mon, 04 Jan 2021 | CA$5.1b | CA$11.3b | -CA$1,710,238,504.00 | 9.1x | -3x | 0.5x |
| Thu, 08 Oct 2020 | CA$3.6b | CA$11.8b | -CA$1,350,990,707.00 | 14.6x | -2.7x | 0.3x |
Price to Earnings Ratio
-2.7x
Current Industry PE
- Investors are pessimistic on the Canadian Energy Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 11.4x which is higher than its 3-year average PE of -10.5x.
- The industry is trading close to its 3-year average PS ratio of 0.58x.
Past Earnings Growth
- Total earnings for the Energy Services industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 32% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Energy industry?
| CA Market | -0.092% | |
| Energy | -0.95% | |
| Energy Services | -0.82% | |
| Oil and Gas Services | -0.61% | |
| Oil and Gas Drilling | -1.62% | |
Industry PE
- Investors are most optimistic about the Oil and Gas Services industry even though it's trading below its 3-year average PE ratio of 37.4x.
- Analysts are expecting annual earnings growth of 25.0%, which is lower than the prior year's growth of 117.0% per year.
- Investors are most pessimistic about the Oil and Gas Drilling industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Oil and Gas Drilling industry, expecting annual earnings growth of 27% over the next 5 years.
- However this is lower than its past earnings growth rate of 259% per year.
- In contrast, the Oil and Gas Services industry is expected to see its earnings grow by 25% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SES Secure Energy Services | CA$7.85 | 0.9% +CA$21.2m | 33.7% | PE12.6x | |
| PD Precision Drilling | CA$92.34 | -5.3% CA$17.2m | 14.0% | PE8.6x | |
| PHX PHX Energy Services | CA$8.03 | 3.2% +CA$12.2m | 29.1% | PE5.3x | |
| WRG Western Energy Services | CA$3.62 | 6.5% +CA$7.4m | 22.7% | PS0.5x | |
| CET Cathedral Energy Services | CA$0.93 | 3.3% +CA$7.4m | 36.8% | PE10.3x |