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TCW

Trican Well Service TSX:TCW Stock Report

Last Price

CA$3.62

Market Cap

CA$887.9m

7D

0.8%

1Y

56.0%

Updated

18 Aug, 2022

Data

Company Financials +
TCW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends0/6

TCW Stock Overview

Trican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells in Canada.

Trican Well Service Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Trican Well Service
Historical stock prices
Current Share PriceCA$3.62
52 Week HighCA$4.90
52 Week LowCA$2.28
Beta2.19
1 Month Change10.03%
3 Month Change-18.28%
1 Year Change56.03%
3 Year Change273.20%
5 Year Change5.54%
Change since IPO648.96%

Recent News & Updates

Shareholder Returns

TCWCA Energy ServicesCA Market
7D0.8%-1.1%1.3%
1Y56.0%32.0%3.3%

Return vs Industry: TCW exceeded the Canadian Energy Services industry which returned 26.2% over the past year.

Return vs Market: TCW exceeded the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is TCW's price volatile compared to industry and market?
TCW volatility
TCW Average Weekly Movement8.9%
Energy Services Industry Average Movement8.4%
Market Average Movement10.5%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.2%

Stable Share Price: TCW is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TCW's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19791,032Brad Fedorahttps://www.tricanwellservice.com

Trican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design, and laboratory solutions, as well as surface, intermediate, production, liner, horizontal, and remedial/squeeze cementing services; and cement pumpers, bulk equipment, and cement auxiliary equipment. It also provides reservoir solutions, such as exploration, production analysis, and simulation and modeling services; and coiled tubing solutions comprising coiled tubing fracturing and acidizing, specially designed tools, in-house engineering, well cleanouts, milling, high pressure jetting, e-coil, nitrogen gas lifting, and production enhancement, as well as equipment and tools.

Trican Well Service Fundamentals Summary

How do Trican Well Service's earnings and revenue compare to its market cap?
TCW fundamental statistics
Market CapCA$887.90m
Earnings (TTM)CA$33.61m
Revenue (TTM)CA$692.39m

26.4x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCW income statement (TTM)
RevenueCA$692.39m
Cost of RevenueCA$542.82m
Gross ProfitCA$149.57m
Other ExpensesCA$115.96m
EarningsCA$33.61m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin21.60%
Net Profit Margin4.85%
Debt/Equity Ratio6.1%

How did TCW perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TCW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TCW?

Other financial metrics that can be useful for relative valuation.

TCW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA7.7x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does TCW's PE Ratio compare to its peers?

TCW PE Ratio vs Peers
The above table shows the PE ratio for TCW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.8x
CEU CES Energy Solutions
9.9x37.1%CA$676.6m
PSI Pason Systems
18.4x25.8%CA$1.1b
NOA North American Construction Group
7.9x11.9%CA$399.7m
STEP STEP Energy Services
11.1x21.8%CA$419.5m
TCW Trican Well Service
26.4x37.7%CA$887.9m

Price-To-Earnings vs Peers: TCW is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (11.8x).


Price to Earnings Ratio vs Industry

How does TCW's PE Ratio compare vs other companies in the North American Energy Services Industry?

Price-To-Earnings vs Industry: TCW is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the Canadian Energy Services industry average (12.6x)


Price to Earnings Ratio vs Fair Ratio

What is TCW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TCW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.4x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: TCW is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).


Share Price vs Fair Value

What is the Fair Price of TCW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TCW (CA$3.62) is trading below our estimate of fair value (CA$13.97)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Trican Well Service forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


37.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCW's forecast earnings growth (37.7% per year) is above the savings rate (1.6%).

Earnings vs Market: TCW's earnings (37.7% per year) are forecast to grow faster than the Canadian market (7.6% per year).

High Growth Earnings: TCW's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCW's revenue (15.6% per year) is forecast to grow faster than the Canadian market (6.6% per year).

High Growth Revenue: TCW's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCW's Return on Equity is forecast to be low in 3 years time (15.1%).


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Past Performance

How has Trican Well Service performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TCW has high quality earnings.

Growing Profit Margin: TCW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TCW has become profitable over the past 5 years, growing earnings by -4.8% per year.

Accelerating Growth: TCW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TCW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (29.1%).


Return on Equity

High ROE: TCW's Return on Equity (6.9%) is considered low.


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Financial Health

How is Trican Well Service's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TCW's short term assets (CA$240.3M) exceed its short term liabilities (CA$125.3M).

Long Term Liabilities: TCW's short term assets (CA$240.3M) exceed its long term liabilities (CA$18.7M).


Debt to Equity History and Analysis

Debt Level: TCW has more cash than its total debt.

Reducing Debt: TCW's debt to equity ratio has reduced from 15.6% to 6.1% over the past 5 years.

Debt Coverage: TCW's debt is well covered by operating cash flow (269.5%).

Interest Coverage: TCW's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet


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Dividend

What is Trican Well Service current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: TCW is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TCW has not reported any payouts.


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Management

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

1.9yrs

Average management tenure


CEO

Brad Fedora (52 yo)

1.92yrs

Tenure

CA$2,987,026

Compensation

Mr. Bradley P. D. Fedora, also known as Brad, MBA, has been Chief Executive Officer and President of Trican Well Service Ltd. since September 1, 2020. He has been Non-Independent Director at Trican Well Se...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.31M) is above average for companies of similar size in the Canadian market ($USD1.57M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TCW's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: TCW's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: TCW 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

Trican Well Service Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Trican Well Service Ltd.
  • Ticker: TCW
  • Exchange: TSX
  • Founded: 1979
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: CA$887.898m
  • Shares outstanding: 245.28m
  • Website: https://www.tricanwellservice.com

Number of Employees


Location

  • Trican Well Service Ltd.
  • 645 – 7th Avenue S.W.
  • Suite 2900
  • Calgary
  • Alberta
  • T2P 4G8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.