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Western Energy Services
(TSX:WRG)
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Rating:51Neutral
Price Target:
C$3.00
â–¼(-7.69% Downside)
Action:Reiterated
Date:07/30/26
The score is mainly supported by stronger cash generation and an improving balance sheet (debt reduction and moderate leverage). Offsetting this, the company’s income statement remains the biggest risk with sharply lower TTM revenue and ongoing net losses, while technicals are mixed with weaker short-term trend and valuation constrained by unprofitability.
Positive Factors
Cash generation
Consistent positive operating cash flow (~45M TTM) and free cash flow (~25.1M) create durable liquidity. This supports maintenance capex, rig upkeep, debt reduction and working capital needs, giving the firm flexibility to fund operations through industry cycles without immediate external financing.
Negative Factors
Severe top-line contraction
A roughly 70% TTM revenue decline signals pronounced loss of activity and utilization. Because drilling revenue is utilization-driven, sustained top-line weakness can leave rigs idle, spread fixed costs over fewer revenue days, and materially compress cash generation unless activity recovers meaningfully.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating cash flow (~45M TTM) and free cash flow (~25.1M) create durable liquidity. This supports maintenance capex, rig upkeep, debt reduction and working capital needs, giving the firm flexibility to fund operations through industry cycles without immediate external financing.
Read all positive factors
Western Energy Services (WRG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$118.15M
Dividend Yield7.03%
Average Volume (3M)797.00
Price to Earnings (P/E)―
Beta (1Y)-0.55
Revenue Growth-10.90%
EPS Growth-349.06%
CountryCA
Employees588
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.77
Shares Outstanding33,853,176
10 Day Avg. Volume351
30 Day Avg. Volume797
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.27
Price to Sales (P/S)0.33
P/FCF Ratio6.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.08
Revenue Forecast (FY)C$218.50M
Western Energy Services Business Overview & Revenue Model
Company Description
Western Energy Services Corp. operates as an oilfield services provider across Canada and the United States. The company structures its operations into two primary divisions: Contract Drilling and Production Services. Through its Contract Drilling...
How the Company Makes Money
Western Energy Services makes money primarily by contracting its drilling rigs, equipment, and crews to exploration and production (E&P) companies for well construction. The core revenue stream is contract drilling revenue, typically earned on a d...
Western Energy Services Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 202.32M | 217.50M | 223.08M | 233.45M | 200.34M | 131.68M |
| Gross Profit | 90.34M | 23.33M | 182.03M | 21.82M | 160.25M | 89.65M |
| EBITDA | 44.89M | 21.57M | 42.65M | 45.34M | 37.94M | 22.43M |
| Net Income | -25.90M | -26.00M | -7.16M | -7.21M | 29.00M | -35.81M |
Balance Sheet | ||||||
| Total Assets | 362.15M | 378.65M | 430.98M | 442.93M | 475.71M | 456.00M |
| Cash, Cash Equivalents and Short-Term Investments | 10.89M | 2.66M | 3.79M | 6.25M | 8.88M | 7.48M |
| Total Debt | 75.05M | 86.60M | 98.75M | 115.22M | 131.69M | 240.42M |
| Total Liabilities | 97.00M | 113.20M | 135.13M | 147.27M | 173.18M | 269.50M |
| Stockholders Equity | 263.04M | 263.19M | 293.62M | 293.37M | 300.59M | 184.51M |
Cash Flow | ||||||
| Free Cash Flow | 25.13M | 10.32M | 25.19M | 28.73M | -5.69M | 9.77M |
| Operating Cash Flow | 45.02M | 32.00M | 46.80M | 51.35M | 28.54M | 16.63M |
| Investing Cash Flow | -17.03M | -19.25M | -21.91M | -25.45M | -28.95M | -5.69M |
| Financing Cash Flow | -22.32M | -13.88M | -27.03M | -28.85M | 1.44M | -22.79M |
Western Energy Services Technical Analysis
Positive
3.25
Price Trends
3.32
Positive
3.23
Positive
2.87
Positive
Market Momentum
0.04
Negative
58.96
Neutral
97.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRG, the sentiment is Positive. The current price of 3.25 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.32, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 97.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WRG.
Western Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$712.65M | 11.15 | 8.75% | 9.98% | -14.91% | 442.58% | |
70 Outperform | C$570.68M | 12.29 | 20.25% | 7.97% | 1.48% | -12.96% | |
70 Outperform | C$1.31B | 14.70 | 12.81% | 3.48% | 20.43% | -20.30% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | C$1.57B | -50.23 | -2.03% | 5.07% | 3.86% | -132.87% | |
51 Neutral | C$118.15M | -4.54 | -9.61% | 7.03% | -10.90% | -349.06% | |
41 Neutral | C$696.76M | -17.71 | -3.11% | 133.33% | -1.48% | -6.74% |
* Energy Sector Average
TSE:WRG
Western Energy Services
3.49
1.45
71.08%
TSE:PD
Precision Drilling
124.69
45.03
56.53%
TSE:CFW
Calfrac Well Services
6.86
3.78
122.94%
TSE:ESI
Ensign Energy Services
3.87
1.64
73.54%
TSE:PHX
PHX Energy Services
12.54
5.78
85.48%
TSE:TCW
Trican Well Service
6.32
0.73
13.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.