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Trican Well Service (TSE:TCW)
TSX:TCW
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Trican Well Service
(TSX:TCW)
75Outperform
Positive Factors
Customer Base
TCW maintains one of the best customer lists in Canada, which should allow for stability in results next year.
Dividends
The company raised its quarterly dividend by 11%, reflecting an annualized yield of more than 4%.
Share Repurchase
The company has repurchased 3.9 million shares, equating to about 20% of the current buyback program.
Negative Factors
Growth Outlook
The lack of growth into 2025 combined with TCW's relatively expensive valuation causes a more neutral approach to the shares.
Market Environment
Outlook for Canadian pressure pumping remains modestly softer given the weaker natural gas price environment.
Revenue and Cash Flow
Revenue fell approximately 12% year-over-year to $222 million, while free cash flow dipped from last year's level.
Trican Well Service (TCW) vs. S&P 500 (SPY)
Market Cap
$783.63M
Dividend Yield4.46%
Average Volume (3M)596.64K
Price to Earnings (P/E)7.6
Beta (1Y)0.52
Revenue Growth0.84%
EPS Growth-1.74%
CountryCA
Employees1,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding188,372,210
10 Day Avg. Volume431,073
30 Day Avg. Volume596,638
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.78
Price to Sales (P/S)0.00
P/FCF Ratio10.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.12Price Target Upside20.41% Upside
Rating ConsensusHold
Number of Analyst Covering4
Trican Well Service Business Overview & Revenue Model
Company DescriptionTrican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design, and laboratory solutions, as well as surface, intermediate, production, liner, horizontal, and remedial/squeeze cementing services; and cement pumpers, bulk equipment, and cement auxiliary equipment. It also provides reservoir solutions, such as exploration, production analysis, and simulation and modeling services; and coiled tubing solutions comprising coiled tubing fracturing and acidizing, specially designed tools, in-house engineering, well cleanouts, milling, high pressure jetting, e-coil, nitrogen gas lifting, and production enhancement, as well as equipment and tools. In addition, the company offers acidizing and production enhancement services that include production and injection well enhancement services, and equipment; well intervention tools; and fracturing solutions and equipment. Trican Well Service Ltd. was incorporated in 1979 and is headquartered in Calgary, Canada.
How the Company Makes MoneyTrican Well Service generates revenue primarily through its service offerings to oil and gas exploration and production companies. The company's key revenue streams include hydraulic fracturing services, which help increase the extraction of oil and natural gas from wells; cementing services, essential for securing and isolating wellbore zones; and coiled tubing services, used for various well intervention and maintenance activities. Trican's earnings are significantly influenced by the levels of oil and gas exploration and production activities, which in turn depend on factors such as global oil prices and demand. The company also benefits from strategic partnerships and contracts with major oil and gas companies, which provide a steady flow of service requests and long-term business stability.
Trican Well Service Financial Statement Overview
Summary
Trican Well Service is financially sound with strong profitability, as evidenced by a robust EBITDA margin of 22.99% and a healthy return on equity of 22.42%. However, the slight dip in net profit margin and free cash flow requires attention.Income Statement
Trican Well Service exhibited a solid financial performance with a gross profit margin of 19.38% and an EBIT margin of 15.14% for 2024. The company demonstrated a steady revenue growth from 2023 to 2024, although the net profit margin slightly declined to 11.16%, suggesting some cost pressures. Despite these challenges, the EBITDA margin remained robust at 22.99%, indicating strong operational efficiency.78
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.04, reflecting prudent financial leverage. The equity ratio stands at 71.50%, showcasing a solid equity base. Return on equity is healthy at 22.42%, indicating effective use of shareholders' equity to generate profits.81
Very Positive
Cash Flow
Cash flow analysis highlights a decrease in free cash flow from 2023 to 2024, with free cash flow to net income ratio at 0.73. This suggests efficient conversion of income into cash flow despite the decline. The operating cash flow to net income ratio is robust at 1.41, indicating strong cash generation capabilities.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 980.84M | 972.68M | 866.29M | 562.48M | 397.02M | Gross Profit |
| 190.00M | 201.15M | 150.34M | 43.29M | -40.57M | EBIT |
| 148.51M | 161.62M | 110.18M | 14.22M | -70.77M | EBITDA |
| 225.54M | 238.76M | 190.68M | 101.76M | -144.44M | Net Income Common Stockholders |
| 109.48M | 121.01M | 79.22M | 12.06M | -233.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 26.28M | 88.75M | 58.11M | 29.51M | 22.61M | Total Assets |
| 683.07M | 710.44M | 671.12M | 577.84M | 563.21M | Total Debt |
| 20.01M | 18.14M | 42.39M | 10.32M | 13.77M | Net Debt |
| -6.27M | -70.61M | -15.72M | -19.19M | -8.84M | Total Liabilities |
| 194.68M | 193.38M | 166.45M | 88.44M | 70.94M | Stockholders Equity |
| 488.39M | 517.07M | 504.67M | 489.40M | 492.27M |
| Cash Flow | Free Cash Flow | |||
| 79.78M | 169.17M | 48.61M | 20.21M | 57.98M | Operating Cash Flow |
| 154.84M | 248.46M | 152.23M | 74.10M | 70.77M | Investing Cash Flow |
| -75.92M | -75.09M | -85.80M | -39.35M | 13.26M | Financing Cash Flow |
| -141.39M | -142.73M | -37.83M | -27.84M | -68.67M |
Trican Well Service Technical Analysis
Neutral
4.25
Price Trends
4.32
Negative
4.57
Negative
4.63
Negative
Market Momentum
-0.05
Negative
53.29
Neutral
82.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCW, the sentiment is Neutral. The current price of 4.25 is above the 20-day moving average (MA) of 4.13, below the 50-day MA of 4.32, and below the 200-day MA of 4.63, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 82.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TCW.
Trican Well Service Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $783.63M | 7.59 | 21.89% | 4.46% | 0.84% | -1.74% | |
75 Outperform | C$368.71M | 5.82 | 11.38% | 3.82% | 11.02% | 102.23% | |
66 Neutral | C$1.18B | 11.44 | 7.03% | 1.31% | 1.22% | ― | |
59 Neutral | C$278.16M | 148.46 | 0.49% | ― | 0.98% | -96.29% | |
56 Neutral | $7.17B | 3.84 | -4.86% | 5.83% | 0.24% | -51.87% | |
55 Neutral | C$293.74M | 28.22 | 1.34% | ― | -15.92% | -94.84% |
* Energy Sector Average
Performance Comparison
TSE:TCW
Trican Well Service
4.25
0.07
1.72%
CESDF
CES Energy Solutions
4.43
-0.43
-8.85%
TSE:CFW
Calfrac Well Services
3.42
-0.68
-16.59%
TSE:EFX
Enerflex
10.04
2.94
41.41%
TSE:TOT
Total Energy Services
9.88
0.73
7.98%
TSE:STEP
STEP Energy Services
3.82
-0.44
-10.33%
Trican Well Service Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2024)
| % Change Since: -8.15%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong financial performance and strategic initiatives like dividend increases and technology modernization. However, concerns over potential U.S. tariffs and pricing pressures were notable challenges.Q4-2024 Updates
Positive Updates
Strong Financial Position
Trican exited the quarter with positive working capital of approximately $128 million and cash of about $26 million. They generated positive earnings of $27.6 million, translating to $0.14 per share.
Increase in Dividend
The Board of Directors approved a dividend of $0.05 per share for this quarter, reflecting an increase of 11% from the previous quarterly dividend.
Fracturing Division Performance
Q4 revenue was up about 17% year-over-year and EBITDA was up about 13% in the fracturing division.
Technology Modernization Initiative
Trican is undertaking a significant technology modernization initiative with a 2025 investment of approximately $10 million, aimed at enhancing operational efficiency and incorporating artificial intelligence.
Coiled Tubing Revenue Growth
Coiled tubing revenue was up 12% year-over-year and EBITDA was up almost 80%, with high utilization rates in Q1.
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA for the quarter was $55.6 million or 20% of revenues, down from $56.4 million or 22% of revenues in Q4 of last year.
Potential Impact of U.S. Tariffs
Concerns over potential 10% U.S. tariffs on Canadian oil and gas imports, and possible retaliatory tariffs from Canada, could impact costs, particularly for sand imported from the U.S.
Pricing Pressure in Q4
Experienced pricing pressure in Q4 due to some competitors not being as busy, leading to some margin compression.
Company Guidance
During the Trican Well Service's Fourth Quarter 2024 earnings call, CFO Scott Matson reported revenues of $275.5 million and an adjusted EBITDA of $55.6 million, representing 20% of revenues. This was slightly down from the previous year's Q4 EBITDA of $56.4 million or 22% of revenues. The company generated positive earnings of $27.6 million or $0.14 per share, with free cash flow amounting to $33.9 million. Capital expenditures for the quarter totaled $18.7 million, with $14.2 million allocated to maintenance capital and $4.5 million to upgrade capital, focusing on electrification and equipment upgrades. For 2025, Trican has planned a $70 million capital budget targeting maintenance, growth initiatives, and technology enhancements, including a $10 million investment in a new ERP platform and AI capabilities. Additionally, the company repurchased and canceled 3.1 million shares in Q4 under the NCIB program and announced an 11% increase in quarterly dividends, maintaining an annual payout of approximately $36 million.Trican Well Service Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Trican Well Service Reports Q1 2025 Results Amid Competitive Pressures
Neutral
May 13, 2025
Trican Well Service Ltd. reported a decrease in its first-quarter 2025 financial results compared to the previous year, primarily due to a competitive pricing environment and inflationary cost pressures. Despite the lower revenue and profits, the company maintained a strong balance sheet with positive working capital, allowing for continued shareholder returns through dividends and share buybacks. Trican’s ongoing commitment to its Normal Course Issuer Bid (NCIB) program and increased quarterly dividend reflects its strategic focus on returning capital to shareholders, while maintaining financial flexibility for future operations.
The most recent analyst rating on (TSE:TCW) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Trican Well Service stock, see the TSE:TCW Stock Forecast page.
Spark’s Take on TSE:TCW Stock
According to Spark, TipRanks’ AI Analyst, TSE:TCW is a Outperform.
Trican Well Service is performing well financially, with strong profitability and a solid balance sheet. Despite a slight dip in net profit margin and free cash flow, the company is positioned for growth. The stock appears undervalued with a low P/E ratio and a solid dividend yield. Technical analysis suggests some bearish momentum, but the overall sentiment remains positive due to strategic initiatives and a strong earnings call, balanced by concerns about tariffs and pricing pressure.
To see Spark’s full report on TSE:TCW stock, click here.
Business Operations and StrategyFinancial Disclosures
Trican Well Service to Release Q1 2025 Results and Host Conference Call
Neutral
Mar 31, 2025
Trican Well Service Ltd. announced that it will release its First Quarter 2025 financial results on May 12, 2025, after the market closes. The company will hold a conference call on May 13, 2025, to discuss these results, providing stakeholders with insights into its financial performance and operational strategies.
DividendsFinancial Disclosures
Trican Well Service Reports 2024 Results and Boosts Dividend
Neutral
Feb 20, 2025
Trican Well Service Ltd. reported its annual results for 2024, highlighting a marginal revenue increase to $980.8 million despite low natural gas prices, and a decrease in profit to $109.5 million. The company announced an 11% increase in its quarterly dividend, indicating strong financial health with a positive balance sheet, despite a reduction in cash reserves due to tax liabilities and capital expenditures.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.