OTCPK:CETE.F

Stock Analysis Report

Cathedral Energy Services

Executive Summary

Cathedral Energy Services Ltd., together with its subsidiary, Cathedral Energy Services Inc., provides directional drilling services to oil and natural gas companies in western Canada and the United States.


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CETE.F

-15.3%

US Energy Services

-7.6%

US Market


1 Year Return

-69.7%

CETE.F

-40.4%

US Energy Services

10.2%

US Market

Return vs Industry: CETE.F underperformed the US Energy Services industry which returned -39.1% over the past year.

Return vs Market: CETE.F underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

CETE.FIndustryMarket
7 Day0%-15.3%-7.6%
30 Day-6.8%-15.9%-4.5%
90 Day3.5%-18.8%-0.6%
1 Year-69.7%-69.7%-38.5%-40.4%12.5%10.2%
3 Year-78.6%-78.6%-61.8%-66.8%37.1%28.3%
5 Year-89.9%-90.7%-63.6%-69.5%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CETE.F ($0.17) is trading above our estimate of fair value ($0.09)

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


Price To Earnings Ratio

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

PE vs Market: CETE.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CETE.F is good value based on its PB Ratio (0.1x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Cathedral Energy Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-8.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CETE.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CETE.F's earnings are forecast to grow faster than the US market

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

Revenue vs Market: CETE.F's revenue is expected to decline over the next 3 years (-8.7% per year).

High Growth Revenue: CETE.F's revenue is forecast to decline over the next 3 years (-8.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CETE.F is currently unprofitable.

Growing Profit Margin: CETE.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CETE.F is unprofitable, and losses have increased over the past 5 years at a rate of -27.1% per year.

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

Earnings vs Industry: CETE.F is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-30%).


Return on Equity

High ROE: CETE.F has a negative Return on Equity (-41.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cathedral Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: CETE.F's short term assets (CA$45.7M) exceed its short term liabilities (CA$21.6M).

Long Term Liabilities: CETE.F's short term assets (CA$45.7M) exceed its long term liabilities (CA$26.0M).


Debt to Equity History and Analysis

Debt Level: CETE.F's debt to equity ratio (9.3%) is considered satisfactory.

Reducing Debt: CETE.F's debt to equity ratio has reduced from 49.7% to 9.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CETE.F's debt is covered by short term assets (assets are 6.5x 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: CETE.F has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%4.0%industryaverage5.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: CETE.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CETE.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

P. MacFarlane 0

6.3yrs

Tenure

CA$424,580

Compensation

Mr. P. Scott MacFarlane has been the Chief Executive Officer and President of Cathedral Energy Services Ltd. since October 10, 2013 and has been its Director since December 19, 2013 and also has been its I ...


CEO Compensation Analysis

Compensation vs Market: P.'s total compensation ($USD319.51K) is below average for companies of similar size in the US market ($USD524.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
P. MacFarlane
President6.3yrsCA$424.58k0.83% CA$67.9k
Randal Pustanyk
Co-Founder19.3yrsCA$388.98k1.26% CA$102.8k
Bogdan Picioreanu
Vice President of Technology10.7yrsCA$299.90k0.25% CA$20.2k
David Diachok
Vice President of Sales14.8yrsCA$299.90k0.23% CA$19.0k
Kevin Miller
Director of Finance & Accounting5.6yrsno data0.011% CA$893.4

8.5yrs

Average Tenure

Experienced Management: CETE.F's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
P. MacFarlane
President6.3yrsCA$424.58k0.83% CA$67.9k
Randal Pustanyk
Co-Founder19.3yrsCA$388.98k1.26% CA$102.8k
Dale Tremblay
Independent Director4.3yrsCA$52.69k0.22% CA$18.1k
Scott Sarjeant
Independent Director16.8yrsCA$55.87k1.37% CA$112.1k
Roderick Maxwell
Independent Chairman7.1yrsCA$77.50k1.11% CA$90.7k
Ian Brown
Independent Director10.2yrsCA$60.96k0.25% CA$20.6k

8.6yrs

Average Tenure

Experienced Board: CETE.F's board of directors are considered experienced (8.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Cathedral Energy Services Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cathedral Energy Services Ltd.
  • Ticker: CETE.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: CA$10.883m
  • Listing Market Cap: CA$8.181m
  • Shares outstanding: 49.47m
  • Website: https://www.cathedralenergyservices.com

Number of Employees


Location

  • Cathedral Energy Services Ltd.
  • 6030 – 3rd Street SE
  • Calgary
  • Alberta
  • T2H 1K2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CETTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2002
CETE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2002
T80DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2002

Biography

Cathedral Energy Services Ltd., together with its subsidiary, Cathedral Energy Services Inc., provides directional drilling services to oil and natural gas companies in western Canada and the United States. It offers horizontal and directional drilling services; and drilling optimization and well planning services. The company 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 Analysis2020/02/27 01:48
End of Day Share Price2020/02/10 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.