TSX:SDY

Stock Analysis Report

Executive Summary

Strad Inc. provides rental equipment and matting solutions to the oil and gas, pipeline, power transmission, and mining sectors in Canada and the United States.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Strad's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

SDY

-1.1%

CA Energy Services

1.1%

CA Market


1 Year Return

11.2%

SDY

-35.2%

CA Energy Services

6.9%

CA Market

Return vs Industry: SDY exceeded the Canadian Energy Services industry which returned -35.2% over the past year.

Return vs Market: SDY exceeded the Canadian Market which returned 6.9% over the past year.


Shareholder returns

SDYIndustryMarket
7 Day-0.6%-1.1%1.1%
30 Day5.6%-3.2%2.6%
90 Day2.4%-8.0%4.6%
1 Year11.2%11.2%-33.3%-35.2%10.4%6.9%
3 Year13.4%13.4%-45.5%-49.4%18.6%8.0%
5 Year-62.5%-66.1%-67.5%-71.1%27.1%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Strad undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SDY (CA$1.69) is trading below our estimate of fair value (CA$5.6)

Significantly Below Fair Value: SDY is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: SDY 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 SDY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SDY is overvalued based on its PB Ratio (0.7x) compared to the CA Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Strad forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if SDY'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: SDY's revenue (14.7% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: SDY's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Strad performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDY has large one-off items impacting its financial results.

Growing Profit Margin: SDY's current net profit margins (-3.1%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: SDY is unprofitable, and losses have increased over the past 5 years at a rate of -8.1% per year.

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

Earnings vs Industry: SDY is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (20.6%).


Return on Equity

High ROE: SDY has a negative Return on Equity (-2.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Strad's financial position?


Financial Position Analysis

Short Term Liabilities: SDY's short term assets (CA$28.1M) exceeds its short term liabilities (CA$23.9M)

Long Term Liabilities: SDY's short term assets (28.1M) exceeds its long term liabilities (20.6M)


Debt to Equity History and Analysis

Debt Level: SDY's debt to equity ratio (6.6%) is considered satisfactory

Reducing Debt: SDY's debt to equity ratio has reduced from 32.3% to 6.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SDY's debt is covered by short term assets (assets are 3.1x 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: Whilst unprofitable SDY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SDY is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -7.9% per year.


Next Steps

Dividend

What is Strad's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.7%industryaverage5.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SDY'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 SDY's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: SDY is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SDY'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 Strad's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Andy Pernal 0

7.4yrs

Tenure

CA$875,742

Compensation

Mr. Andrew Robert C. Pernal, also known as Andy, CA, has been the President of Strad Energy Services Ltd. since March 31, 2009 and has been its Chief Executive Officer since June 2012. Mr. Pernal served as ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD661.89K) is above average for companies of similar size in the Canadian market ($USD136.04K).

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


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: SDY's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: SDY's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Andy Pernal

    President

    • Tenure: 7.4yrs
    • Compensation: CA$875.74k
  • Shane Hopkie

    Chief Operating Officer

    • Tenure: 5.8yrs
    • Compensation: CA$555.62k
  • Michael Donovan

    Chief Financial Officer

    • Tenure: 3.7yrs
    • Compensation: CA$480.48k

Board Members

  • Mick McNulty

    Chairman of the Board

    • Tenure: 0.9yrs
    • Compensation: CA$102.40k
  • Andy Pernal

    President

    • Tenure: 7.4yrs
    • Compensation: CA$875.74k
  • Jack Nodwell

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: CA$94.40k
  • Tom Alford (61yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$116.20k
  • Craig Hruska

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$112.80k
  • Lyle Wood

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$306.00k
  • Kristi Cawthorn

    Independent Director

    • Tenure: 1yrs
    • Compensation: CA$4.67k
  • Lee Matheson

    Independent Director

    • Tenure: 0.5yrs

Company Information

Strad Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strad Inc.
  • Ticker: SDY
  • Exchange: TSX
  • Founded: 2003
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$95.689m
  • Shares outstanding: 56.62m
  • Website: https://www.stradinc.com

Number of Employees


Location

  • Strad Inc.
  • 400 - 2nd Avenue SW
  • Suite 1200
  • Calgary
  • Alberta
  • T2P 5E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDYTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2010
8SSDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2010
STRD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2010

Biography

Strad Inc. provides rental equipment and matting solutions to the oil and gas, pipeline, power transmission, and mining sectors in Canada and the United States. The company operates in two segments, Indust ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:03
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
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.