TSX:CET

Stock Analysis Report

Cathedral Energy Services

Executive Summary

Cathedral Energy Services Ltd., together with its subsidiary, Cathedral Energy Services Inc., provides directional drilling services to oil and natural gas companies in western Canada and the United States.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Cathedral Energy Services has significant price volatility in the past 3 months.
  • Cathedral Energy Services is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Cathedral Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

TSX:CET

-6.7%

CA Energy Services

-1.4%

CA Market


1 Year Return

-66.7%

TSX:CET

-38.9%

CA Energy Services

-4.4%

CA Market

CET underperformed the Energy Services industry which returned -38.9% over the past year.

CET underperformed the Market in Canada which returned -4.4% over the past year.


Share holder returns

CETIndustryMarket
7 Day3.3%-6.7%-1.4%
30 Day-19.5%-12.1%-2.7%
90 Day-50.0%-20.2%-3.1%
1 Year-66.7%-66.7%-37.4%-38.9%-1.0%-4.4%
3 Year-44.6%-44.6%-33.4%-38.0%13.4%3.4%
5 Year-92.3%-93.2%-72.9%-75.2%12.5%-3.3%

Price Volatility Vs. Market

How volatile is Cathedral Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cathedral Energy Services undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cathedral Energy Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cathedral Energy Services's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cathedral Energy Services is loss making, we can't compare its value to the CA Energy Services industry average.

Cathedral Energy Services is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Cathedral Energy Services, we can't assess if its growth is good value.


Price Based on Value of Assets

Cathedral Energy Services is good value based on assets compared to the CA Energy Services industry average.


Next Steps

Future Growth

How is Cathedral Energy Services expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cathedral Energy Services's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

Unable to determine if Cathedral Energy Services is high growth as no earnings estimate data is available.

Cathedral Energy Services's revenue growth is positive but not above the Canada market average.

Unable to compare Cathedral Energy Services's earnings growth to the Canada market average as no estimate data is available.

Unable to compare Cathedral Energy Services's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cathedral Energy Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Cathedral Energy Services performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cathedral Energy Services does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Cathedral Energy Services's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Cathedral Energy Services's 1-year growth to the CA Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Cathedral Energy Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Cathedral Energy Services has efficiently used its assets last year compared to the CA Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Cathedral Energy Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Cathedral Energy Services's financial position?


Financial Position Analysis

Cathedral Energy Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cathedral Energy Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cathedral Energy Services's level of debt (11.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (48.6% vs 11.1% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.2x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Cathedral Energy Services has less than a year of cash runway based on current free cash flow.

Cathedral Energy Services has less than a year of cash runway if free cash flow continues to grow at historical rates of 81.6% each year.


Next Steps

Dividend

What is Cathedral Energy Services's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Cathedral Energy Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cathedral Energy Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cathedral Energy Services has not reported any payouts.

Unable to verify if Cathedral Energy Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cathedral Energy Services has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Cathedral Energy Services's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

What is the CEO of Cathedral Energy Services's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

P. MacFarlane

5.8yrs

Tenure

CA$424,580

Compensation

Mr. P. Scott MacFarlane has been the Chief Executive Officer and President of Cathedral Energy Services Ltd. since October 10, 2013 and has been its Director since December 19, 2013 and also has been its I ...


CEO Compensation Analysis

P.'s remuneration is higher than average for companies of similar size in Canada.

P.'s compensation has increased whilst company is loss making.


Management Age and Tenure

8.0yrs

Average Tenure

The average tenure for the Cathedral Energy Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.7yrs

Average Tenure

The tenure for the Cathedral Energy Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$17,70017 Oct 18
Scott Sarjeant
EntityIndividual
Role
Member of the Board of Directors
Shares24,000
Max PriceCA$0.74
BuyCA$3,70025 Sep 18
P. MacFarlane
EntityIndividual
Role
President
Member of the Board of Directors
Shares5,000
Max PriceCA$0.74
BuyCA$1,72524 Sep 18
Michael Hill
EntityIndividual
Shares2,500
Max PriceCA$0.69
BuyCA$3,65018 Sep 18
Michael Hill
EntityIndividual
Shares5,000
Max PriceCA$0.73
BuyCA$3,70014 Sep 18
P. MacFarlane
EntityIndividual
Role
President
Member of the Board of Directors
Shares5,000
Max PriceCA$0.74
BuyCA$7,40014 Sep 18
Michael Hill
EntityIndividual
Shares10,000
Max PriceCA$0.74
BuyCA$4,10012 Sep 18
P. MacFarlane
EntityIndividual
Role
President
Member of the Board of Directors
Shares5,000
Max PriceCA$0.82

Ownership Breakdown


Management Team

  • Randy Pustanyk

    Co-Founder

    • Compensation: CA$388.98k
  • P. MacFarlane

    President

    • Tenure: 5.8yrs
    • Compensation: CA$424.58k
  • David Diachok

    Vice President of Sales

    • Tenure: 14.3yrs
    • Compensation: CA$299.90k
  • Bogdan Picioreanu

    Vice President of Technology

    • Tenure: 10.2yrs
    • Compensation: CA$299.90k
  • Kevin Miller

    Director of Finance & Accounting

    • Tenure: 5.1yrs

Board Members

  • Dale Tremblay (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$52.69k
  • Jay Zammit

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$42.04k
  • Scott Sarjeant

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: CA$55.87k
  • Randy Pustanyk

    Co-Founder

    • Tenure: 18.8yrs
    • Compensation: CA$388.98k
  • Rod Maxwell

    Chairman

    • Tenure: 6.6yrs
    • Compensation: CA$77.50k
  • P. MacFarlane

    President

    • Tenure: 5.7yrs
    • Compensation: CA$424.58k
  • Ian Brown (61yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: CA$60.96k

Company Information

Cathedral Energy Services Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cathedral Energy Services Ltd.
  • Ticker: CET
  • Exchange: TSX
  • Founded:
  • Industry: oil and gas drilling
  • Sector: energy
  • Market Cap: CA$15.335m
  • Shares outstanding: 49.47m
  • Website: Click here

Number of Employees


Location

  • Cathedral Energy Services Ltd.
  • 6030 – 3rd Street SE
  • Calgary
  • Alberta
  • T2H 1K2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CETTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2002
CETE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2002
T80DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2002

Biography

Cathedral Energy Services Ltd., together with its subsidiary, Cathedral Energy Services Inc., provides directional drilling services to oil and natural gas companies in western Canada and the United States ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:45
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.