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Cathedral Engy Serv (TSE:ACX)
TSX:ACX
Canadian Market
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Cathedral Energy Services (ACX) AI Stock Analysis

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TSE:ACX

Cathedral Energy Services

(TSX:ACX)

Rating:73Outperform
Price Target:
C$5.50
▲(10.89% Upside)
Cathedral Energy Services' strong valuation and stable financial performance are the primary strengths, with the stock appearing undervalued. Technical indicators suggest mixed momentum, with short-term bullish signs but longer-term caution. The absence of earnings call and corporate events data limits additional insights.

Cathedral Energy Services (ACX) vs. iShares MSCI Canada ETF (EWC)

Cathedral Energy Services Business Overview & Revenue Model

Company DescriptionCathedral Energy Services (ACX) is a leading provider of specialized services and technologies for the oil and gas industry, focusing on well construction, completion, and production optimization. The company operates primarily in North America and offers a wide range of services including directional drilling, cementing, and coiled tubing, designed to enhance the efficiency and effectiveness of oil and gas extraction processes. Cathedral is committed to delivering innovative solutions that meet the evolving demands of its clients while prioritizing safety and environmental responsibility.
How the Company Makes MoneyCathedral Energy Services generates revenue through multiple key streams, primarily by providing its specialized services to oil and gas companies. The company charges fees for various services, including directional drilling, which involves the precise navigation of drilling equipment to reach targeted oil and gas reserves, and cementing services that ensure the integrity of well casings. Coiled tubing services, which involve the use of a continuous length of tubing for various well interventions, also contribute significantly to revenue. Additionally, Cathedral may enter into long-term contracts or agreements with major oil and gas operators, securing steady income over extended periods. The company's revenue model is bolstered by its focus on technological advancements and operational efficiencies, allowing it to offer competitive pricing while maintaining margins. Strategic partnerships and collaborations with other industry players further enhance Cathedral's service offerings and market reach, contributing positively to its overall earnings.

Cathedral Energy Services Financial Statement Overview

Summary
Cathedral Energy Services demonstrates a stable financial position with strengths in cash flow generation and operational efficiency. However, challenges in revenue growth and declining profitability margins highlight areas for improvement. The company maintains a balanced approach to leveraging, ensuring financial stability in a volatile industry.
Income Statement
72
Positive
Cathedral Energy Services shows a mixed performance in its income statement. The company has a solid gross profit margin of 21.77% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 7.32% from 10.13% in the previous year, reflecting a decline in profitability. The revenue growth rate is negative at -3.37% in TTM, suggesting a contraction in sales. Despite these challenges, the EBIT and EBITDA margins remain relatively stable, showing resilience in operational efficiency.
Balance Sheet
68
Positive
The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.46 in TTM, which is manageable and shows a slight increase from the previous year, indicating a cautious approach to leveraging. The return on equity has decreased to 16.24% in TTM from 23.97% in the previous year, suggesting reduced efficiency in generating returns for shareholders. The equity ratio stands at 51.41%, indicating a strong equity base relative to total assets.
Cash Flow
75
Positive
Cash flow analysis reveals a strong performance with a free cash flow growth rate of 106.6% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.81, reflecting healthy cash flow relative to earnings. The free cash flow to net income ratio is 0.39, showing a good conversion of earnings into free cash flow, which is crucial for sustaining operations and funding growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue523.90M571.78M545.30M319.01M62.52M40.57M
Gross Profit114.05M121.85M105.33M70.80M-1.03M-10.19M
EBITDA72.43M98.51M77.60M60.73M5.27M-8.64M
Net Income38.36M57.91M10.63M18.35M-8.63M-27.73M
Balance Sheet
Total Assets455.49M472.88M403.73M353.99M75.42M64.28M
Cash, Cash Equivalents and Short-Term Investments24.05M12.79M10.73M11.18M2.90M1.03M
Total Debt107.62M89.22M97.26M98.42M21.80M19.59M
Total Liabilities221.37M231.30M224.26M200.09M32.92M24.31M
Stockholders Equity234.12M241.58M179.47M153.90M42.50M39.97M
Cash Flow
Free Cash Flow33.17M32.73M23.55M12.02M-9.12M-1.53M
Operating Cash Flow85.03M90.18M69.98M39.88M-3.50M1.19M
Investing Cash Flow-48.56M-56.48M-69.94M-131.42M877.00K646.00K
Financing Cash Flow-28.94M-32.29M-883.00K97.58M4.49M-7.93M

Cathedral Energy Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.96
Price Trends
50DMA
4.72
Positive
100DMA
4.84
Positive
200DMA
5.40
Negative
Market Momentum
MACD
0.04
Negative
RSI
59.19
Neutral
STOCH
86.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACX, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.76, above the 50-day MA of 4.72, and below the 200-day MA of 5.40, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 86.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ACX.

Cathedral Energy Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$168.32M4.5517.64%-10.64%55.18%
72
Outperform
C$80.48M3.7112.72%19.58%344.29%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
64
Neutral
C$348.35M6.6423.75%10.60%6.97%-36.60%
57
Neutral
C$25.99M33.331.08%-12.27%-91.01%
54
Neutral
C$71.41M-1.99%5.00%22.76%
52
Neutral
C$400.83M14.37-2.86%-1.65%-279.49%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ACX
Cathedral Energy Services
4.82
-1.01
-17.32%
TSE:AKT.A
AKITA Drilling Ltd
1.98
0.67
51.15%
TSE:ESI
Ensign Energy Services
2.17
-0.24
-9.96%
TSE:SDI
Stampede Drilling Inc
0.13
-0.08
-38.10%
TSE:PHX
PHX Energy Services
7.55
-0.86
-10.23%
TSE:WRG
Western Energy Services
2.11
-0.87
-29.19%

Cathedral Energy Services Corporate Events

Stock BuybackFinancial Disclosures
ACT Energy Technologies Reports Q2 2025 Financial Results Amid Revenue Decline
Negative
Aug 8, 2025

ACT Energy Technologies Ltd, operating in the energy technology sector, reported a 14% decrease in revenues for the second quarter of 2025, primarily due to reduced U.S. operating days. Despite the revenue decline, the company maintained its adjusted EBITDAS margins through lower third-party rental costs by deploying Rime measurement-while-drilling systems. The company also reported a net loss of $10 million, influenced by foreign exchange losses and a sales tax provision. However, ACT’s liquidity remains strong with significant undrawn credit capacity and cash reserves, and the company completed a share repurchase program, reflecting confidence in its market position.

The most recent analyst rating on (TSE:ACX) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Cathedral Energy Services stock, see the TSE:ACX Stock Forecast page.

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.Date of analysis: Sep 04, 2025