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WRG

Western Energy Services TSX:WRG Stock Report

Last Price

CA$0.045

Market Cap

CA$182.7m

7D

12.5%

1Y

-90.4%

Updated

24 Jun, 2022

Data

Company Financials +
WRG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

WRG Stock Overview

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States.

Western Energy Services Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Western Energy Services
Historical stock prices
Current Share PriceCA$0.045
52 Week HighCA$0.50
52 Week LowCA$0.02
Beta1.9
1 Month Change12.50%
3 Month Change-78.57%
1 Year Change-90.43%
3 Year Change-80.00%
5 Year Change-97.43%
Change since IPO-99.88%

Recent News & Updates

May 30
Estimating The Fair Value Of Western Energy Services Corp. (TSE:WRG)

Estimating The Fair Value Of Western Energy Services Corp. (TSE:WRG)

Today we will run through one way of estimating the intrinsic value of Western Energy Services Corp. ( TSE:WRG ) by...

Shareholder Returns

WRGCA Energy ServicesCA Market
7D12.5%-1.7%0.3%
1Y-90.4%-0.4%-4.1%

Return vs Industry: WRG underperformed the Canadian Energy Services industry which returned -1.2% over the past year.

Return vs Market: WRG underperformed the Canadian Market which returned -5.7% over the past year.

Price Volatility

Is WRG's price volatile compared to industry and market?
WRG volatility
WRG Average Weekly Movement34.3%
Energy Services Industry Average Movement8.0%
Market Average Movement9.9%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market4.3%

Stable Share Price: WRG is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 34% a week.

Volatility Over Time: WRG's weekly volatility has increased from 23% to 34% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013566Alex R. MacAuslandhttps://www.wesc.ca

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment.

Western Energy Services Fundamentals Summary

How do Western Energy Services's earnings and revenue compare to its market cap?
WRG fundamental statistics
Market CapCA$182.73m
Earnings (TTM)-CA$33.64m
Revenue (TTM)CA$145.18m

1.3x

P/S Ratio

-5.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WRG income statement (TTM)
RevenueCA$145.18m
Cost of RevenueCA$107.71m
Gross ProfitCA$37.48m
Other ExpensesCA$71.12m
Earnings-CA$33.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.0083
Gross Margin25.81%
Net Profit Margin-23.17%
Debt/Equity Ratio131.6%

How did WRG perform over the long term?

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

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WRG 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/Revenue2.9x
Enterprise Value/EBITDA16x
PEG Ration/a

Price to Sales Ratio vs Peers

How does WRG's PS Ratio compare to its peers?

WRG PS Ratio vs Peers
The above table shows the PS ratio for WRG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.7x

Price-To-Sales vs Peers: WRG is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (0.7x).


Price to Earnings Ratio vs Industry

How does WRG's PE Ratio compare vs other companies in the Canadian Energy Services Industry?

Price-To-Sales vs Industry: WRG is expensive based on its Price-To-Sales Ratio (1.3x) compared to the Canadian Energy Services industry average (0.7x)


Price to Sales Ratio vs Fair Ratio

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

WRG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: WRG is expensive based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).


Share Price vs Fair Value

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

Below Fair Value: WRG (CA$0.05) is trading below our estimate of fair value (CA$0.05)

Significantly Below Fair Value: WRG is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WRG's forecast earnings growth is above the savings rate (1.6%).

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

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

Revenue vs Market: WRG's revenue (26.6% per year) is forecast to grow faster than the Canadian market (6.6% per year).

High Growth Revenue: WRG's revenue (26.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Discover growth companies

Past Performance

How has Western Energy Services performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WRG is currently unprofitable.

Growing Profit Margin: WRG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WRG is unprofitable, but has reduced losses over the past 5 years at a rate of 0.4% per year.

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

Earnings vs Industry: WRG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-8%).


Return on Equity

High ROE: WRG has a negative Return on Equity (-18.28%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Western Energy Services's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: WRG's short term assets (CA$48.7M) do not cover its short term liabilities (CA$254.7M).

Long Term Liabilities: WRG's short term assets (CA$48.7M) exceed its long term liabilities (CA$20.9M).


Debt to Equity History and Analysis

Debt Level: WRG's net debt to equity ratio (127%) is considered high.

Reducing Debt: WRG's debt to equity ratio has increased from 65.6% to 131.6% 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: Whilst unprofitable WRG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WRG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 2.4% per year.


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Dividend

What is Western Energy Services's 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

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


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Management

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

12.5yrs

Average management tenure


CEO

Alex R. MacAusland (52 yo)

12.5yrs

Tenure

CA$775,466

Compensation

Mr. Alex R. N. MacAusland has been the Chief Executive Officer of Western Energy Services Corp. since December 1, 2013 and its President since December 8, 2009. Mr. MacAusland is a founder of Western. Mr....


CEO Compensation Analysis

Compensation vs Market: Alex R.'s total compensation ($USD600.35K) is above average for companies of similar size in the Canadian market ($USD175.39K).

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


Leadership Team

Experienced Management: WRG's management team is seasoned and experienced (12.5 years average tenure).


Board Members

Experienced Board: WRG's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 4352.5%.


Top Shareholders

Company Information

Western Energy Services Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Western Energy Services Corp.
  • Ticker: WRG
  • Exchange: TSX
  • Founded: 2013
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Implied Market Cap: CA$182.730m
  • Shares outstanding: 4.06b
  • Website: https://www.wesc.ca

Number of Employees


Location

  • Western Energy Services Corp.
  • 215 – 9th Avenue SW
  • Suite 1700
  • Calgary
  • Alberta
  • T2P 1K3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
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.