TSX:TCW

Stock Analysis Report

Trican Well Service

Executive Summary

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 primarily in Canada.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Trican Well Service's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

TCW

3.9%

CA Energy Services

2.1%

CA Market


1 Year Return

-69.7%

TCW

-72.6%

CA Energy Services

-21.2%

CA Market

Return vs Industry: TCW exceeded the Canadian Energy Services industry which returned -72.6% over the past year.

Return vs Market: TCW underperformed the Canadian Market which returned -21.2% over the past year.


Shareholder returns

TCWIndustryMarket
7 Day2.2%3.9%2.1%
30 Day-23.3%-46.8%-13.8%
90 Day-58.9%-60.0%-21.9%
1 Year-69.7%-69.7%-71.1%-72.6%-18.6%-21.2%
3 Year-89.3%-89.3%-80.0%-82.0%-11.0%-19.3%
5 Year-90.7%-90.7%-82.5%-84.9%1.6%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Trican Well Service 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: TCW (CA$0.46) is trading below our estimate of fair value (CA$3.4)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TCW is good value based on its PB Ratio (0.2x) compared to the CA Energy Services industry average (0.3x).


Next Steps

Future Growth

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

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TCW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TCW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TCW's revenue is expected to decline over the next 3 years (-15% per year).

High Growth Revenue: TCW's revenue is forecast to decline over the next 3 years (-15% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCW is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

-35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCW is currently unprofitable.

Growing Profit Margin: TCW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TCW is unprofitable, and losses have increased over the past 5 years at a rate of -35.1% per year.

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

Earnings vs Industry: TCW is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (4.1%).


Return on Equity

High ROE: TCW has a negative Return on Equity (-9.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Trican Well Service's financial position?


Financial Position Analysis

Short Term Liabilities: TCW's short term assets (CA$232.7M) exceed its short term liabilities (CA$92.9M).

Long Term Liabilities: TCW's short term assets (CA$232.7M) exceed its long term liabilities (CA$92.5M).


Debt to Equity History and Analysis

Debt Level: TCW's debt to equity ratio (6.2%) is considered satisfactory.

Reducing Debt: TCW's debt to equity ratio has reduced from 59.6% to 6.2% over the past 5 years.


Balance Sheet


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: TCW has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


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 payouts.

High Dividend: Unable to evaluate TCW'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 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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TCW'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?

2.8yrs

Average management tenure


CEO

Dale Dusterhoft (58yo)

10.67s

Tenure

CA$1,810,067

Compensation

Mr. Dale M. Dusterhoft has been the Chief Executive Officer of Trican Well Service Ltd. since August 1, 2009 and its President since May 3, 2016. Mr. Dusterhoft has been the Chief Executive Officer of Tric ...


CEO Compensation Analysis

Compensation vs Market: Dale's total compensation ($USD1.28M) is above average for companies of similar size in the Canadian market ($USD157.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dale Dusterhoft
President10.67yrsCA$1.81m0.23% CA$284.2k
Robert Skilnick
Chief Financial Officer2.5yrsCA$851.99k0.038% CA$46.5k
Robert Cox
Senior Vice President of Operations2.83yrsCA$845.56k0.0071% CA$8.7k
David Westlund
Vice President of Sales & Marketing2.83yrsCA$907.23k0.067% CA$82.4k
Michael Baldwin
Executive Vice President1.08yrsCA$931.99k0.022% CA$27.5k
Chika Onwuekwe
VP of Legal3.08yrsno data0.0084% CA$10.3k

2.8yrs

Average Tenure

Experienced Management: TCW's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dale Dusterhoft
President10.67yrsCA$1.81m0.23% CA$284.2k
Bradley P. Fedora
Independent Chairman of the Board0.92yrCA$158.98k0.37% CA$455.1k
Kevin Nugent
Independent Director12.08yrsCA$180.28k0.034% CA$41.8k
G. Brooks
Lead Independent Director0.92yrCA$179.44k0.038% CA$46.4k
Deborah Stein
Independent Director3.92yrsCA$153.08k0.0094% CA$11.5k
Michael Rapps
Independent Director0.92yrno data0.052% CA$63.4k

2.4yrs

Average Tenure

58yo

Average Age

Experienced Board: TCW's board of directors are not considered experienced ( 2.4 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 company bio, 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
  • Market Cap: CA$122.696m
  • Shares outstanding: 266.73m
  • Website: https://www.tricanwellservice.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCWTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1996
TWZDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1996
TOLW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1996

Biography

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 primarily in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design solutions, 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; coiled tubing solutions that include coiled tubing fracturing and acidizing, specially designed tools, in-house engineering, well cleanouts, milling, high pressure jetting, e-coil (smart coil), nitrogen gas lifting, and production enhancement, as well as equipment and tools; and acidizing and production enhancement services comprising production and injection well enhancement services, and equipment. In addition, the company offers pipeline services comprising nitrogen, commissioning, operating, and abandonment services; well intervention tools; fracturing solutions and equipment; and industrial services, such as chemical, mechanical, and bundle cleaning services. Trican Well Service Ltd. was founded in 1979 and 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 Analysis2020/04/08 06:05
End of Day Share Price2020/04/07 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.