TSXV:CWC

Stock Analysis Report

CWC Energy Services

Executive Summary

CWC Energy Services Corp., an oilfield services company, provides contract drilling and well servicing services to oil and gas exploration and development companies in the Western Canadian Sedimentary Basin.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has CWC Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CWC

-1.5%

CA Energy Services

0.6%

CA Market


1 Year Return

-28.6%

CWC

-36.8%

CA Energy Services

7.4%

CA Market

Return vs Industry: CWC exceeded the Canadian Energy Services industry which returned -36.8% over the past year.

Return vs Market: CWC underperformed the Canadian Market which returned 7.4% over the past year.


Shareholder returns

CWCIndustryMarket
7 Day0%-1.5%0.6%
30 Day0%-1.3%3.3%
90 Day-31.0%-11.1%3.6%
1 Year-28.6%-28.6%-35.0%-36.8%11.0%7.4%
3 Year-41.2%-41.2%-46.6%-50.4%18.1%7.5%
5 Year-83.8%-85.3%-68.1%-71.7%27.1%8.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWC (CA$0.1) is trading below our estimate of fair value (CA$0.17)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CWC is good value based on its PB Ratio (0.3x) compared to the CA Energy Services industry average (0.7x).


Next Steps

Future Growth

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

2.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if CWC'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: CWC's revenue (2.1% per year) is forecast to grow slower than the Canadian market (4.8% per year).

High Growth Revenue: CWC's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWC's Return on Equity is forecast to be low in 3 years time (0.7%).


Next Steps

Past Performance

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

43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWC has high quality earnings.

Growing Profit Margin: CWC's current net profit margins (-0.9%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: CWC is unprofitable, but has reduced losses over the past 5 years at a rate of 43.8% per year.

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

Earnings vs Industry: CWC is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (26.3%).


Return on Equity

High ROE: CWC has a negative Return on Equity (-0.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CWC Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: CWC's short term assets (CA$23.7M) exceeds its short term liabilities (CA$7.0M)

Long Term Liabilities: CWC's short term assets (CA$23.7M) do not cover its long term liabilities (53.1M)


Debt to Equity History and Analysis

Debt Level: CWC's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: CWC's debt to equity ratio has reduced from 31.1% to 22.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CWC's debt is not covered by short term assets (assets are 0.6x 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 CWC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CWC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.7%industryaverage4.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.8yrs

Average management tenure


CEO

Duncan Au 0

9.1yrs

Tenure

CA$557,720

Compensation

Mr. Duncan T. Au, CPA, CA, CFA, has been the Chief Executive Officer and President of CWC Energy Services Corp. (Formerly CWC Well Services Corp). (formerly, Central Alberta Well Services Corp.) since Octo ...


CEO Compensation Analysis

Compensation vs Market: Duncan's total compensation ($USD421.64K) is above average for companies of similar size in the Canadian market ($USD136.08K).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: CWC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

53yo

Average Age

Experienced Board: CWC's board of directors are considered experienced (9.3 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.


Recent Insider Transactions

SellCA$2819 Jun 19
Paul Donohue
EntityIndividual
Role
Other Key Executive
Vice President of Drilling Operations
Shares167
Max PriceCA$0.16
SellCA$29,61711 Jun 19
Paul Donohue
EntityIndividual
Role
Other Key Executive
Vice President of Drilling Operations
Shares179,500
Max PriceCA$0.17
SellCA$28,07705 Jun 19
Robert Charles Apps
EntityIndividual
Role
Other Key Executive
Vice President of Sales & Marketing - Drilling
Shares170,167
Max PriceCA$0.17
SellCA$1,53327 May 19
Robert Charles Apps
EntityIndividual
Role
Other Key Executive
Vice President of Sales & Marketing - Drilling
Shares8,500
Max PriceCA$0.18
SellCA$36,55022 May 19
Paul Donohue
EntityIndividual
Role
Other Key Executive
Vice President of Drilling Operations
Shares215,000
Max PriceCA$0.17
SellCA$2,38008 Mar 19
Stuart King
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares17,000
Max PriceCA$0.14

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Management Team

  • Duncan Au

    CEO, President & Director

    • Tenure: 9.1yrs
    • Compensation: CA$557.72k
  • Stuart King

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: CA$298.86k
  • James Kidd

    Corporate Secretary

    • Tenure: 8yrs
  • Darwin McIntyre

    Vice President of Operations for Well Services

    • Tenure: 8.8yrs
    • Compensation: CA$341.72k
  • Mike DuBois

    Vice President of Sales & Marketing for Well Services

    • Tenure: 4.8yrs
    • Compensation: CA$298.86k
  • Paul Donohue

    Vice President of Drilling Operations

    • Tenure: 3.4yrs
    • Compensation: CA$298.86k
  • Robert Charles Apps

    Vice President of Sales & Marketing - Drilling

    • Tenure: 3.6yrs
    • Compensation: CA$298.86k

Board Members

  • Wade McGowan

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$41.55k
  • Duncan Au

    CEO, President & Director

    • Tenure: 9.1yrs
    • Compensation: CA$557.72k
  • Dean Schultz (51yo)

    Director

    • Tenure: 4.9yrs
  • Gary Bentham (65yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: CA$44.05k
  • Jim Reid (53yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
  • Daryl Austin

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: CA$34.55k

Company Information

CWC Energy Services Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CWC Energy Services Corp.
  • Ticker: CWC
  • Exchange: TSXV
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$51.000m
  • Shares outstanding: 510.00m
  • Website: https://www.cwcenergyservices.com

Number of Employees


Location

  • CWC Energy Services Corp.
  • Bow Valley Square II
  • Suite 610
  • Calgary
  • Alberta
  • T2P 2V7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWCTSXV (TSX Venture Exchange)YesVoting Common SharesCACADSep 2005
CAWL.FOTCPK (Pink Sheets LLC)YesVoting Common SharesUSUSDSep 2005
0ZWDB (Deutsche Boerse AG)YesVoting Common SharesDEEURSep 2005

Biography

CWC Energy Services Corp., an oilfield services company, provides contract drilling and well servicing services to oil and gas exploration and development companies in the Western Canadian Sedimentary Basi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 00:18
End of Day Share Price2019/11/15 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.