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 Analysis

Flawless balance sheet and overvalued.


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

Stable Share Price: CET has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.0%

CET

-6.4%

CA Energy Services

3.7%

CA Market


1 Year Return

-84.5%

CET

-74.2%

CA Energy Services

-23.7%

CA Market

Return vs Industry: CET underperformed the Canadian Energy Services industry which returned -74.8% over the past year.

Return vs Market: CET underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

CETIndustryMarket
7 Day-10.0%-6.4%3.7%
30 Day-58.1%-55.1%-19.7%
90 Day-67.3%-63.2%-24.3%
1 Year-84.5%-84.5%-72.7%-74.2%-21.2%-23.7%
3 Year-91.5%-91.5%-81.0%-82.9%-13.3%-21.4%
5 Year-96.0%-96.2%-83.5%-85.8%-0.8%-15.5%

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?

0.065x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CET's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CET's fair value to establish if it is undervalued.


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

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 (0.1x) compared to the CA Energy Services industry average (0.2x).


Next Steps

Future Growth

How is Cathedral Energy Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-36.3%

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 (1.4%).

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 (-36.3% per year).

High Growth Revenue: CET's revenue is forecast to decline over the next 3 years (-36.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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?

-27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CET is currently unprofitable.

Growing Profit Margin: CET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CET is unprofitable, and losses have increased over the past 5 years at a rate of -27.5% 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 (18.1%).


Return on Equity

High ROE: CET has a negative Return on Equity (-28.18%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cathedral Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: CET's short term assets (CA$34.1M) exceed its short term liabilities (CA$13.9M).

Long Term Liabilities: CET's short term assets (CA$34.1M) exceed its long term liabilities (CA$24.3M).


Debt to Equity History and Analysis

Debt Level: CET's debt to equity ratio (8.8%) is considered satisfactory.

Reducing Debt: CET's debt to equity ratio has reduced from 43.5% to 8.8% 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 5.7x 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 sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CET has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of -26.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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 the Canadian market.


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

How experienced are the management team and are they aligned to shareholders interests?

8.7yrs

Average management tenure


CEO

P. MacFarlane

6.5s

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 ($USD300.28K) is above average for companies of similar size in the Canadian market ($USD159.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
P. MacFarlane
President6.5yrsCA$424.58k0.83% CA$36.9k
Randal Pustanyk
Co-Founder19.5yrsCA$388.98k1.26% CA$56.0k
Bogdan Picioreanu
Vice President of Technology10.83yrsCA$299.90k0.25% CA$11.0k
David Diachok
Vice President of Sales14.92yrsCA$299.90k0.23% CA$10.3k
Kevin Miller
Director of Finance & Accounting5.75yrsno data0.011% CA$486.2

8.7yrs

Average Tenure

Experienced Management: CET's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
P. MacFarlane
President6.5yrsCA$424.58k0.83% CA$36.9k
Randal Pustanyk
Co-Founder19.5yrsCA$388.98k1.26% CA$56.0k
Dale Tremblay
Independent Director4.5yrsCA$52.69k0.22% CA$9.8k
Scott Sarjeant
Independent Director17yrsCA$55.87k1.37% CA$61.0k
Roderick Maxwell
Independent Chairman7.25yrsCA$77.50k1.11% CA$49.4k
Ian Brown
Independent Director10.33yrsCA$60.96k0.25% CA$11.2k

8.8yrs

Average Tenure

Experienced Board: CET's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$4.452m
  • 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. It offers horizontal and directional drilling services; and drilling optimization and well planning services. The company is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:58
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.