TRICAN WELL SERVICE LTD (TCW.CA) Stock Fundamental Analysis
TSX:TCW - Toronto Stock Exchange - CA8959451037 - Common Stock - Currency: CAD
TCW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 28 industry peers in the Energy Equipment & Services industry. TCW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TCW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TCW was profitable.
In the past year TCW had a positive cash flow from operations.
TCW had positive earnings in 4 of the past 5 years.
TCW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TCW's Return On Assets of 16.03% is amongst the best of the industry. TCW outperforms 92.86% of its industry peers.
TCW's Return On Equity of 22.42% is amongst the best of the industry. TCW outperforms 82.14% of its industry peers.
TCW has a Return On Invested Capital of 20.63%. This is amongst the best in the industry. TCW outperforms 96.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCW is significantly above the industry average of 10.72%.
The last Return On Invested Capital (20.63%) for TCW is above the 3 year average (19.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.03% | ||
| ROE | 22.42% | ||
| ROIC | 20.63% |
ROA(3y)14.96%
ROA(5y)1.52%
ROE(3y)20.51%
ROE(5y)3.81%
ROIC(3y)19.01%
ROIC(5y)N/A
1.3 Margins
TCW has a Profit Margin of 11.16%. This is amongst the best in the industry. TCW outperforms 89.29% of its industry peers.
TCW's Profit Margin has improved in the last couple of years.
TCW's Operating Margin of 15.22% is amongst the best of the industry. TCW outperforms 92.86% of its industry peers.
TCW's Gross Margin of 19.37% is in line compared to the rest of the industry. TCW outperforms 46.43% of its industry peers.
In the last couple of years the Gross Margin of TCW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.22% | ||
| PM (TTM) | 11.16% | ||
| GM | 19.37% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y53.97%
PM growth 5YN/A
GM growth 3Y49.98%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TCW is creating value.
TCW has less shares outstanding than it did 1 year ago.
TCW has less shares outstanding than it did 5 years ago.
TCW has a worse debt/assets ratio than last year.
2.2 Solvency
TCW has an Altman-Z score of 4.27. This indicates that TCW is financially healthy and has little risk of bankruptcy at the moment.
TCW has a better Altman-Z score (4.27) than 89.29% of its industry peers.
TCW has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.25, TCW belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
TCW has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TCW (0.03) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 4.27 |
ROIC/WACC2.6
WACC7.92%
2.3 Liquidity
TCW has a Current Ratio of 1.94. This is a normal value and indicates that TCW is financially healthy and should not expect problems in meeting its short term obligations.
TCW's Current ratio of 1.94 is fine compared to the rest of the industry. TCW outperforms 67.86% of its industry peers.
TCW has a Quick Ratio of 1.79. This is a normal value and indicates that TCW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TCW (1.79) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
TCW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.16%.
The Earnings Per Share has been growing by 96.68% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.85% in the past year.
TCW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.05% yearly.
EPS 1Y (TTM)-3.16%
EPS 3Y96.68%
EPS 5YN/A
EPS Q2Q%1.86%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y20.36%
Revenue growth 5Y9.05%
Sales Q2Q%8.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.26% on average over the next years. This is quite good.
Based on estimates for the next years, TCW will show a decrease in Revenue. The Revenue will decrease by -1.06% on average per year.
EPS Next Y2.4%
EPS Next 2Y8.58%
EPS Next 3Y8.31%
EPS Next 5Y9.26%
Revenue Next Year5.23%
Revenue Next 2Y4.33%
Revenue Next 3Y1.63%
Revenue Next 5Y-1.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.11, the valuation of TCW can be described as reasonable.
Based on the Price/Earnings ratio, TCW is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
TCW is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.88, the valuation of TCW can be described as very cheap.
TCW's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TCW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCW indicates a somewhat cheap valuation: TCW is cheaper than 71.43% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TCW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 3.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TCW may justify a higher PE ratio.
PEG (NY)3.38
PEG (5Y)N/A
EPS Next 2Y8.58%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
TCW has a Yearly Dividend Yield of 4.50%, which is a nice return.
TCW's Dividend Yield is rather good when compared to the industry average which is at 19.09. TCW pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TCW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
The dividend of TCW decreases each year by -9.83%.
TCW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TCW decreased recently.
Dividend Growth(5Y)-9.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TCW pays out 32.50% of its income as dividend. This is a sustainable payout ratio.
DP32.5%
EPS Next 2Y8.58%
EPS Next 3Y8.31%
TSX:TCW (5/23/2025, 7:00:00 PM)
4.3
+0.06 (+1.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners29.67%
Inst Owner ChangeN/A
Ins Owners0.77%
Ins Owner ChangeN/A
Market Cap801.95M
Analysts73.33
Price Target5.64 (31.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend0.18
Dividend Growth(5Y)-9.83%
DP32.5%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.26%
Min EPS beat(2)-0.99%
Max EPS beat(2)25.5%
EPS beat(4)3
Avg EPS beat(4)11.55%
Min EPS beat(4)-0.99%
Max EPS beat(4)25.5%
EPS beat(8)6
Avg EPS beat(8)33.3%
EPS beat(12)8
Avg EPS beat(12)34.54%
EPS beat(16)12
Avg EPS beat(16)194.38%
Revenue beat(2)1
Avg Revenue beat(2)6.55%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)14.57%
Revenue beat(4)1
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-4.35%
Max Revenue beat(4)14.57%
Revenue beat(8)3
Avg Revenue beat(8)1.26%
Revenue beat(12)5
Avg Revenue beat(12)2.13%
Revenue beat(16)7
Avg Revenue beat(16)2.6%
PT rev (1m)-5.85%
PT rev (3m)-5.35%
EPS NQ rev (1m)12.07%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-4.97%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.82 | ||
| P/FCF | 10.05 | ||
| P/OCF | 5.18 | ||
| P/B | 1.64 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 3.46 |
EPS(TTM)0.53
EY12.33%
EPS(NY)0.55
Fwd EY12.68%
FCF(TTM)0.43
FCFY9.95%
OCF(TTM)0.83
OCFY19.31%
SpS5.26
BVpS2.62
TBVpS2.62
PEG (NY)3.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.03% | ||
| ROE | 22.42% | ||
| ROCE | 27.26% | ||
| ROIC | 20.63% | ||
| ROICexc | 21.67% | ||
| ROICexgc | 21.67% | ||
| OM | 15.22% | ||
| PM (TTM) | 11.16% | ||
| GM | 19.37% | ||
| FCFM | 8.13% |
ROA(3y)14.96%
ROA(5y)1.52%
ROE(3y)20.51%
ROE(5y)3.81%
ROIC(3y)19.01%
ROIC(5y)N/A
ROICexc(3y)19.58%
ROICexc(5y)N/A
ROICexgc(3y)19.61%
ROICexgc(5y)N/A
ROCE(3y)25.12%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y53.97%
PM growth 5YN/A
GM growth 3Y49.98%
GM growth 5YN/A
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 96.81% | ||
| Cap/Sales | 7.65% | ||
| Interest Coverage | 65.15 | ||
| Cash Conversion | 68.27% | ||
| Profit Quality | 72.87% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 4.27 |
F-Score5
WACC7.92%
ROIC/WACC2.6
Cap/Depr(3y)109.56%
Cap/Depr(5y)80.31%
Cap/Sales(3y)9.25%
Cap/Sales(5y)8.11%
Profit Quality(3y)91.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.16%
EPS 3Y96.68%
EPS 5YN/A
EPS Q2Q%1.86%
EPS Next Y2.4%
EPS Next 2Y8.58%
EPS Next 3Y8.31%
EPS Next 5Y9.26%
Revenue 1Y (TTM)0.85%
Revenue growth 3Y20.36%
Revenue growth 5Y9.05%
Sales Q2Q%8.08%
Revenue Next Year5.23%
Revenue Next 2Y4.33%
Revenue Next 3Y1.63%
Revenue Next 5Y-1.06%
EBIT growth 1Y-8.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.21%
EBIT Next 3Y19.08%
EBIT Next 5Y6.65%
FCF growth 1Y-52.84%
FCF growth 3Y58.07%
FCF growth 5YN/A
OCF growth 1Y-37.68%
OCF growth 3Y27.85%
OCF growth 5Y40.19%