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.


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

-3.7%

CET

0.6%

CA Energy Services

0.3%

CA Market


1 Year Return

-64.4%

CET

-36.8%

CA Energy Services

0.1%

CA Market

Return vs Industry: CET underperformed the Canadian Energy Services industry which returned -36.8% over the past year.

Return vs Market: CET underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

CETIndustryMarket
7 Day-3.7%0.6%0.3%
30 Day-22.4%-12.9%-2.5%
90 Day-35.8%-16.5%-1.4%
1 Year-64.4%-64.4%-35.0%-36.8%3.6%0.1%
3 Year-39.5%-39.5%-41.8%-46.1%14.3%4.1%
5 Year-92.1%-92.9%-69.0%-72.4%25.0%6.9%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CET (CA$0.26) is trading below our estimate of fair value (CA$3.46)

Significantly Undervalued: CET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CET is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: CET is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CET's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CET is good value based on its PB Ratio (0.2x) compared to the CA Energy Services industry average (0.8x).


Next Steps

Future Growth

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

-5.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CET's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if CET's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CET's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: CET's revenue is forecast to decline over the next 3 years (-5.6%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CET's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: CET is unprofitable, and losses have increased over the past 5 years at a rate of -21.5% per year.

Accelerating Growth: Unable to compare CET's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CET is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (15.8%).


Return on Equity

High ROE: CET has a negative Return on Equity (-30.38%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CET is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CET is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cathedral Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: CET's short term assets (CA$45.1M) exceeds its short term liabilities (CA$20.5M)

Long Term Liabilities: CET's short term assets (45.1M) exceeds its long term liabilities (26.4M)


Debt to Equity History and Analysis

Debt Level: CET's debt to equity ratio (11.1%) is considered satisfactory

Reducing Debt: CET's debt to equity ratio has reduced from 48.6% to 11.1% over the past 5 years.


Balance Sheet

Inventory Level: CET has a high level of physical assets or inventory.

Debt Coverage by Assets: CET's debt is covered by short term assets (assets are 5.185930x 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.

Stable Cash Runway: CET has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CET has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage5.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CET's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CET's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CET is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CET's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


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?

8.2yrs

Average management tenure


CEO

P. MacFarlane 0

6yrs

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

Compensation vs. Market: P.'s total compensation ($USD321.56K) is above average for companies of similar size in the Canadian market ($USD121.56K).

Compensation vs Earnings: P.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.2yrs

Average Tenure

Experienced Management: CET's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

Experienced Board: CET's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: CET insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$8,77527 Aug 19
Roderick Maxwell
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares32,500
Max PriceCA$0.27
BuyCA$17,70017 Oct 18
Scott Sarjeant
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24,000
Max PriceCA$0.74

Ownership Breakdown


Management Team

  • Randy Pustanyk

    Co-Founder

    • Tenure: 19yrs
    • Compensation: CA$388.98k
  • P. MacFarlane

    President

    • Tenure: 6yrs
    • Compensation: CA$424.58k
  • David Diachok

    Vice President of Sales

    • Tenure: 14.4yrs
    • Compensation: CA$299.90k
  • Bogdan Picioreanu

    Vice President of Technology

    • Tenure: 10.3yrs
    • Compensation: CA$299.90k
  • Kevin Miller

    Director of Finance & Accounting

    • Tenure: 5.3yrs

Board Members

  • Dale Tremblay (64yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: CA$52.69k
  • Scott Sarjeant

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: CA$55.87k
  • Randy Pustanyk

    Co-Founder

    • Tenure: 19yrs
    • Compensation: CA$388.98k
  • Rod Maxwell

    Independent Chairman

    • Tenure: 6.8yrs
    • Compensation: CA$77.50k
  • P. MacFarlane

    President

    • Tenure: 6yrs
    • Compensation: CA$424.58k
  • Ian Brown (61yo)

    Independent Director

    • Tenure: 9.8yrs
    • 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$12.862m
  • Shares outstanding: 49.47m
  • Website: https://www.cathedralenergyservices.com

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 Analysis2019/10/15 23:41
End of Day Share Price2019/10/15 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.