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WRG

Western Energy ServicesTSX:WRG Stock Report

Market Cap

CA$33.0m

7D

9.1%

1Y

12.5%

Updated

28 Nov, 2021

Data

Company Financials +
WRG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
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

Precision Drilling

TSX:PD

CA$571.2m

Ensign Energy Services

TSX:ESI

CA$267.5m

AKITA Drilling

TSX:AKT.A

CA$42.1m

CWC Energy Services

TSXV:CWC

CA$85.8m

Price History & Performance

Summary of all time highs, changes and price drops for Western Energy Services
Historical stock prices
Current Share PriceCA$0.36
52 Week HighCA$0.53
52 Week LowCA$0.26
Beta2.09
1 Month Change-14.29%
3 Month Change20.00%
1 Year Change12.50%
3 Year Change-34.54%
5 Year Change-85.77%
Change since IPO-99.06%

Recent News & Updates

Sep 28
Calculating The Intrinsic Value Of Western Energy Services Corp. (TSE:WRG)

Calculating The Intrinsic Value Of Western Energy Services Corp. (TSE:WRG)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Western Energy...

Aug 04
Is Western Energy Services (TSE:WRG) Using Debt Sensibly?

Is Western Energy Services (TSE:WRG) Using Debt Sensibly?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Apr 21
Western Energy Services Corp.'s (TSE:WRG) CEO Might Not Expect Shareholders To Be So Generous This Year

Western Energy Services Corp.'s (TSE:WRG) CEO Might Not Expect Shareholders To Be So Generous This Year

Shareholders will probably not be too impressed with the underwhelming results at Western Energy Services Corp...

Shareholder Returns

WRGCA Energy ServicesCA Market
7D9.1%-0.6%-1.7%
1Y12.5%50.9%21.9%

Return vs Industry: WRG underperformed the Canadian Energy Services industry which returned 50.6% over the past year.

Return vs Market: WRG underperformed the Canadian Market which returned 22.1% over the past year.

Price Volatility

Is WRG's price volatile compared to industry and market?
WRG volatility
WRG Average Weekly Movement13.1%
Energy Services Industry Average Movement7.7%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.5%

Stable Share Price: WRG is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: WRG's weekly volatility (13%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a747Alex 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 to contracts with exploration and production companies.

Western Energy Services Fundamentals Summary

How do Western Energy Services's earnings and revenue compare to its market cap?
WRG fundamental statistics
Market CapCA$33.01m
Earnings (TTM)-CA$37.52m
Revenue (TTM)CA$117.99m

0.3x

P/S Ratio

-0.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WRG income statement (TTM)
RevenueCA$117.99m
Cost of RevenueCA$87.54m
Gross ProfitCA$30.45m
ExpensesCA$67.97m
Earnings-CA$37.52m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.41
Gross Margin25.81%
Net Profit Margin-31.80%
Debt/Equity Ratio121.1%

How did WRG perform over the long term?

See historical performance and comparison

Valuation

Is Western Energy Services undervalued compared to its fair value and its price relative to the market?

0.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WRG (CA$0.36) is trading above our estimate of fair value (CA$0.27)

Significantly Below Fair Value: WRG is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WRG is good value based on its PB Ratio (0.2x) compared to the CA Energy Services industry average (0.7x).


Future Growth

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

18.8%

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 earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WRG's revenue (18.8% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: WRG's revenue (18.8% 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 WRG's Return on Equity is forecast to be high in 3 years time


Past Performance

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

3.5%

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 3.5% 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 (-2.7%).


Return on Equity

High ROE: WRG has a negative Return on Equity (-19.3%), as it is currently unprofitable.


Financial Health

How is Western Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: WRG's short term assets (CA$34.8M) exceed its short term liabilities (CA$34.1M).

Long Term Liabilities: WRG's short term assets (CA$34.8M) do not cover its long term liabilities (CA$233.8M).


Debt to Equity History and Analysis

Debt Level: WRG's net debt to equity ratio (119.3%) is considered high.

Reducing Debt: WRG's debt to equity ratio has increased from 63% to 121.1% 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 15.8% per year.


Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

10.4yrs

Average board tenure


CEO

Alex R. MacAusland (52 yo)

7.92yrs

Tenure

CA$916,188

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 ($USD716.44K) is above average for companies of similar size in the Canadian market ($USD164.22K).

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


Board Members

Experienced Board: WRG's board of directors are seasoned and experienced ( 10.4 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.


Ownership Breakdown

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


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: NaN
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: CA$33.010m
  • Shares outstanding: 91.70m
  • 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 Analysis2021/11/28 23:27
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.