Cathedral Energy Services (ACX) AI Stock Analysis

• Market Cap: C$160.80M
• Dividend Yield: N/A
• Average Volume (3M): 50.66K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.91
• Revenue Growth: -10.64%
• EPS Growth: 55.18%
• Country: CA
• Employees: 330
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.30
• Shares Outstanding: 33,851,850
• 10 Day Avg. Volume: 37,060
• 30 Day Avg. Volume: 50,664
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.75
• Price Target Upside: 88.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: C$5.00 ▲(7.53% Upside)

Cathedral Energy Services' overall stock score is primarily driven by its stable financial performance and attractive valuation. The strong cash flow and operational efficiency are key strengths, while the low P/E ratio suggests undervaluation. Technical analysis provides a neutral outlook, with no strong momentum signals. The absence of earnings call and corporate events data does not impact the score.

Cathedral Energy Services Business Overview & Revenue Model

Company Description

ACT Energy Technologies Ltd., together with its subsidiaries, provides directional drilling services to oil and natural gas companies in Canada and the United States. It offers remote directional and measurement-while-drilling (MWD), automated gamma, drilling optimization, and well planning and rotary steerable services. The company also offers mud motors, MWD technology solutions, rotary steerable systems, drilling motors and components, and downhole technology products. It is also involved in the operation of real-time operations centers, that offers continuous monitoring, collaboration, and optimization services; and provision of equipment rental, training, maintenance, and repair services. The company was formerly known as Cathedral Energy Services Ltd. and changed its name to ACT Energy Technologies Ltd. in July 2024. ACT Energy Technologies Ltd. was founded in 1998 and is headquartered in Calgary, Canada.

How the Company Makes Money

Cathedral 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	523.90M	571.78M	545.30M	319.01M	62.52M	40.57M
Gross Profit	114.05M	121.85M	105.33M	70.80M	-1.03M	-10.19M
EBITDA	72.43M	98.51M	77.60M	60.73M	5.27M	-8.64M
Net Income	38.36M	57.91M	10.63M	18.35M	-8.63M	-27.73M
Balance Sheet
Total Assets	455.49M	472.88M	403.73M	353.99M	75.42M	64.28M
Cash, Cash Equivalents and Short-Term Investments	24.05M	12.79M	10.73M	11.18M	2.90M	1.03M
Total Debt	107.62M	89.22M	97.26M	98.42M	21.80M	19.59M
Total Liabilities	221.37M	231.30M	224.26M	200.09M	32.92M	24.31M
Stockholders Equity	234.12M	241.58M	179.47M	153.90M	42.50M	39.97M
Cash Flow
Free Cash Flow	33.17M	32.73M	23.55M	12.02M	-9.12M	-1.53M
Operating Cash Flow	85.03M	90.18M	69.98M	39.88M	-3.50M	1.19M
Investing Cash Flow	-48.56M	-56.48M	-69.94M	-131.42M	877.00K	646.00K
Financing Cash Flow	-28.94M	-32.29M	-883.00K	97.58M	4.49M	-7.93M

Cathedral Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.65 is below the 20-day moving average (MA) of 4.77, below the 50-day MA of 4.75, and below the 200-day MA of 5.29, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKT.A	74 Outperform	80.48M	3.69	11.96%	―	19.58%	344.29%
PHX	70 Outperform	357.38M	6.81	23.86%	10.01%	6.97%	-36.60%
ACX	70 Neutral	C$160.80M	4.36	17.64%	―	-10.64%	55.18%
SDI	57 Neutral	29.99M	38.46	1.09%	―	-12.27%	-91.01%
ESI	53 Neutral	458.11M	-11.82	-2.89%	―	-1.65%	-279.49%
WRG	49 Neutral	77.16M	-12.62	-2.02%	―	5.00%	22.76%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Cathedral Energy Services Corporate Events

ACT Energy Technologies Reports Q2 2025 Financial Results Amid Revenue Decline

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.