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TRICAN WELL SERVICE LTD (TCW.CA) Stock Fundamental Analysis

TSX:TCW - Toronto Stock Exchange - CA8959451037 - Common Stock - Currency: CAD

4.53  -0.01 (-0.22%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TCW. TCW was compared to 28 industry peers in the Energy Equipment & Services industry. TCW has an excellent financial health rating, but there are some minor concerns on its profitability. TCW has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

TCW had positive earnings in the past year.
TCW had a positive operating cash flow in the past year.
In multiple years TCW reported negative net income over the last 5 years.
Each year in the past 5 years TCW had a positive operating cash flow.
TCW.CA Yearly Net Income VS EBIT VS OCF VS FCFTCW.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M -600M -800M

1.2 Ratios

TCW has a Return On Assets of 17.47%. This is amongst the best in the industry. TCW outperforms 82.14% of its industry peers.
With a decent Return On Equity value of 22.83%, TCW is doing good in the industry, outperforming 78.57% of the companies in the same industry.
TCW has a Return On Invested Capital of 20.58%. This is amongst the best in the industry. TCW outperforms 96.43% of its industry peers.
Industry RankSector Rank
ROA 17.47%
ROE 22.83%
ROIC 20.58%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TCW.CA Yearly ROA, ROE, ROICTCW.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100

1.3 Margins

With an excellent Profit Margin value of 11.52%, TCW belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
With an excellent Operating Margin value of 15.74%, TCW belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
TCW's Gross Margin of 19.71% is in line compared to the rest of the industry. TCW outperforms 42.86% of its industry peers.
TCW's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.74%
PM (TTM) 11.52%
GM 19.71%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y83.9%
TCW.CA Yearly Profit, Operating, Gross MarginsTCW.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100

9

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.
There is no outstanding debt for TCW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TCW.CA Yearly Shares OutstandingTCW.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M
TCW.CA Yearly Total Debt VS Total AssetsTCW.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 5.42 indicates that TCW is not in any danger for bankruptcy at the moment.
TCW has a better Altman-Z score (5.42) than 92.86% of its industry peers.
TCW has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
The Debt to FCF ratio of TCW (0.36) is better than 89.29% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that TCW is not too dependend on debt financing.
TCW has a better Debt to Equity ratio (0.05) than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.36
Altman-Z 5.42
ROIC/WACC2.54
WACC8.09%
TCW.CA Yearly LT Debt VS Equity VS FCFTCW.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

TCW has a Current Ratio of 2.62. This indicates that TCW is financially healthy and has no problem in meeting its short term obligations.
TCW's Current ratio of 2.62 is amongst the best of the industry. TCW outperforms 85.71% of its industry peers.
TCW has a Quick Ratio of 2.39. This indicates that TCW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.39, TCW belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 2.39
TCW.CA Yearly Current Assets VS Current LiabilitesTCW.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M

1

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.92% over the past year.
TCW shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)1.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-29.41%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y34.81%
Revenue growth 5Y2.39%
Sales Q2Q%-12.24%

3.2 Future

The Earnings Per Share is expected to decrease by -0.57% on average over the next years.
Based on estimates for the next years, TCW will show a decrease in Revenue. The Revenue will decrease by -1.10% on average per year.
EPS Next Y-6.35%
EPS Next 2Y-0.57%
EPS Next 3Y5.64%
EPS Next 5Y-0.57%
Revenue Next Year-2.35%
Revenue Next 2Y0.35%
Revenue Next 3Y1.63%
Revenue Next 5Y-1.1%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TCW.CA Yearly Revenue VS EstimatesTCW.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
TCW.CA Yearly EPS VS EstimatesTCW.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 -1 -2 -3

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.55, the valuation of TCW can be described as reasonable.
75.00% of the companies in the same industry are more expensive than TCW, based on the Price/Earnings ratio.
TCW is valuated cheaply when we compare the Price/Earnings ratio to 29.27, which is the current average of the S&P500 Index.
TCW is valuated reasonably with a Price/Forward Earnings ratio of 8.33.
71.43% of the companies in the same industry are more expensive than TCW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 96.48. TCW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.55
Fwd PE 8.33
TCW.CA Price Earnings VS Forward Price EarningsTCW.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
TCW's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 10.75
EV/EBITDA 3.88
TCW.CA Per share dataTCW.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

The decent profitability rating of TCW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.57%
EPS Next 3Y5.64%

5

5. Dividend

5.1 Amount

TCW has a Yearly Dividend Yield of 3.91%.
TCW's Dividend Yield is rather good when compared to the industry average which is at 12.65. TCW pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, TCW pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.91%

5.2 History

TCW has been paying a dividend for at least 10 years, so it has a reliable track record.
TCW has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
TCW.CA Yearly Dividends per shareTCW.CA Yearly Dividends per shareYearly Dividends per share 2023 2024 0.05 0.1 0.15

5.3 Sustainability

32.00% of the earnings are spent on dividend by TCW. This is a low number and sustainable payout ratio.
DP32%
EPS Next 2Y-0.57%
EPS Next 3Y5.64%
TCW.CA Yearly Income VS Free CF VS DividendTCW.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -200M -400M -600M -800M
TCW.CA Dividend Payout.TCW.CA Dividend Payout, showing the Payout Ratio.TCW.CA Dividend Payout.PayoutRetained Earnings

TRICAN WELL SERVICE LTD

TSX:TCW (2/13/2025, 7:00:00 PM)

4.53

-0.01 (-0.22%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners26.78%
Inst Owner ChangeN/A
Ins Owners0.75%
Ins Owner ChangeN/A
Market Cap859.34M
Analysts73.33
Price Target5.96 (31.57%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.91%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP32%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.08%
Min EPS beat(2)-0.99%
Max EPS beat(2)13.15%
EPS beat(4)3
Avg EPS beat(4)5.65%
Min EPS beat(4)-0.99%
Max EPS beat(4)13.15%
EPS beat(8)5
Avg EPS beat(8)28.78%
EPS beat(12)8
Avg EPS beat(12)37.84%
EPS beat(16)12
Avg EPS beat(16)198.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-4.35%
Max Revenue beat(4)3.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.92%
Revenue beat(12)4
Avg Revenue beat(12)0.69%
Revenue beat(16)7
Avg Revenue beat(16)2.63%
PT rev (1m)1.63%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.79%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.5%
Valuation
Industry RankSector Rank
PE 8.55
Fwd PE 8.33
P/S 0.89
P/FCF 10.75
P/OCF 5.56
P/B 1.77
P/tB 1.77
EV/EBITDA 3.88
EPS(TTM)0.53
EY11.7%
EPS(NY)0.54
Fwd EY12%
FCF(TTM)0.42
FCFY9.31%
OCF(TTM)0.82
OCFY18%
SpS5.06
BVpS2.56
TBVpS2.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 17.47%
ROE 22.83%
ROCE 27.53%
ROIC 20.58%
ROICexc 20.69%
ROICexgc 20.69%
OM 15.74%
PM (TTM) 11.52%
GM 19.71%
FCFM 8.33%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y83.9%
F-Score7
Asset Turnover1.52
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.36
Debt/EBITDA 0.1
Cap/Depr 96.59%
Cap/Sales 7.78%
Interest Coverage 69.43
Cash Conversion 67.69%
Profit Quality 72.27%
Current Ratio 2.62
Quick Ratio 2.39
Altman-Z 5.42
F-Score7
WACC8.09%
ROIC/WACC2.54
Cap/Depr(3y)97.75%
Cap/Depr(5y)66.3%
Cap/Sales(3y)9.9%
Cap/Sales(5y)7.63%
Profit Quality(3y)106.2%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-29.41%
EPS Next Y-6.35%
EPS Next 2Y-0.57%
EPS Next 3Y5.64%
EPS Next 5Y-0.57%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y34.81%
Revenue growth 5Y2.39%
Sales Q2Q%-12.24%
Revenue Next Year-2.35%
Revenue Next 2Y0.35%
Revenue Next 3Y1.63%
Revenue Next 5Y-1.1%
EBIT growth 1Y-11.46%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.63%
EBIT Next 3Y14.69%
EBIT Next 5Y4.43%
FCF growth 1Y912.19%
FCF growth 3Y42.88%
FCF growth 5Y50.24%
OCF growth 1Y47.86%
OCF growth 3Y51.96%
OCF growth 5Y19.75%