Cathedral Engy Serv (TSE:ACX)
TSX:ACX
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Cathedral Energy Services
(TSX:ACX)
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Rating:74Outperform
Price Target:
C$8.00
▲(49.53% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid fundamentals (positive profitability, manageable leverage, and strong free cash flow), supported by constructive technical trends. Valuation is a major positive due to the very low P/E, while the main risk factor is the step-down in TTM profitability and slight revenue decline versus 2024, consistent with cyclical normalization.
Positive Factors
Cash generation
Sustained TTM operating cash flow (~$90M) and positive free cash flow (~$40M) provide durable internal funding for tool maintenance, selective capex and working capital. This cash buffer supports operations through cycles, reduces financing reliance and enables reinvestment in differentiated services.
Negative Factors
Cyclical revenue and margin decline
Recent step-down in revenue and net margin versus 2024 signals a return to cycle-normalized performance. Lower margins reduce earnings resilience and limit internal funding for growth or dividends, making multi-quarter profitability reliant on drilling activity recovery rather than structural margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained TTM operating cash flow (~$90M) and positive free cash flow (~$40M) provide durable internal funding for tool maintenance, selective capex and working capital. This cash buffer supports operations through cycles, reduces financing reliance and enables reinvestment in differentiated services.
Read all positive factors
Cathedral Energy Services (ACX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$238.13M
Dividend YieldN/A
Average Volume (3M)28.12K
Price to Earnings (P/E)10.8
Beta (1Y)0.68
Revenue Growth-16.20%
EPS Growth-38.85%
CountryCA
Employees330
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.08
Shares Outstanding34,916,430
10 Day Avg. Volume29,419
30 Day Avg. Volume28,121
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.68
Price to Sales (P/S)0.35
P/FCF Ratio4.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$7.25Price Target Upside35.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.12
Revenue Forecast (FY)C$654.13M
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 gam...
How the Company Makes Money
Cathedral primarily makes money by providing oilfield services on a fee-for-service basis to exploration and production (E&P) companies and drilling contractors during the drilling phase of a well. Its main revenue stream is directional drilling s...
Cathedral Energy Services Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 474.93M | 571.78M | 545.30M | 319.01M | 62.52M |
| Gross Profit | 95.88M | 121.85M | 105.33M | 70.80M | -1.03M |
| EBITDA | 68.66M | 98.51M | 77.60M | 60.73M | 5.27M |
| Net Income | 15.58M | 57.91M | 10.63M | 18.35M | -8.63M |
Balance Sheet | |||||
| Total Assets | 462.38M | 472.88M | 403.73M | 353.99M | 75.42M |
| Cash, Cash Equivalents and Short-Term Investments | 34.65M | 12.79M | 10.73M | 11.18M | 2.90M |
| Total Debt | 108.18M | 89.22M | 97.26M | 98.42M | 21.80M |
| Total Liabilities | 213.61M | 231.30M | 224.26M | 200.09M | 32.92M |
| Stockholders Equity | 248.77M | 241.58M | 179.47M | 153.90M | 42.50M |
Cash Flow | |||||
| Free Cash Flow | 35.46M | 32.73M | 23.55M | 12.02M | -9.12M |
| Operating Cash Flow | 84.85M | 90.18M | 69.98M | 39.88M | -3.50M |
| Investing Cash Flow | -47.71M | -56.48M | -69.94M | -131.42M | 877.00K |
| Financing Cash Flow | -15.33M | -32.29M | -883.00K | 97.58M | 4.49M |
Cathedral Energy Services Technical Analysis
Neutral
5.35
Price Trends
6.36
Positive
5.76
Positive
5.31
Positive
Market Momentum
0.29
Positive
47.84
Neutral
46.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACX, the sentiment is Neutral. The current price of 5.35 is below the 20-day moving average (MA) of 7.04, below the 50-day MA of 6.36, and above the 200-day MA of 5.31, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 46.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ACX.
Cathedral Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$238.13M | 10.82 | 11.29% | ― | -16.20% | -38.85% | |
71 Outperform | C$140.42M | 5.79 | 7.65% | ― | 24.94% | 956.65% | |
69 Neutral | C$620.22M | 6.22 | 24.11% | 10.44% | 8.98% | -27.41% | |
68 Neutral | C$34.34M | 6.42 | 4.33% | ― | -15.25% | -101.10% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | C$689.07M | -12.07 | -2.94% | ― | -2.47% | -246.73% | |
55 Neutral | C$105.25M | -2.72 | -2.38% | ― | -0.38% | 6.98% |
* Energy Sector Average
TSE:ACX
Cathedral Energy Services
6.82
1.56
29.66%
TSE:AKT.A
AKITA Drilling Ltd
3.62
1.72
90.53%
TSE:ESI
Ensign Energy Services
3.74
1.36
57.14%
TSE:SDI
Stampede Drilling Inc
0.18
0.02
12.90%
TSE:PHX
PHX Energy Services
13.67
5.49
67.14%
TSE:WRG
Western Energy Services
3.11
0.84
37.31%
Cathedral Energy Services Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
ACT Energy Boosts Margins, Deleverages Balance Sheet as It Expands U.S. Footprint
Positive
Mar 25, 2026
ACT Energy Technologies reported 2025 revenue of $474.9 million, down from 2024, but improved its adjusted gross margin to 30% by replacing third-party rentals with internally supplied MWD systems and tightening its cost structure. Net income fell...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
ACT Energy to Acquire SB Directional Services in USD$47 Million U.S. Expansion Push
Positive
Mar 9, 2026
ACT Energy Technologies has moved to strengthen its position in the U.S. oilfield services market by agreeing to acquire SB Directional Services’ directional drilling business for USD$47 million in cash and shares. SB, founded in 2015 and ba...
Business Operations and StrategyM&A Transactions
ACT Energy Technologies Buys Stryker Directional to Boost U.S. Drilling Footprint and Margins
Positive
Jan 6, 2026
ACT Energy Technologies has acquired all assets of Texas-based Stryker Energy Directional Services for approximately US$24.2 million, in a cash, debt and equity deal designed to expand its directional drilling footprint across the Southern United ...
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.