Cathedral Energy Services (ACX) AI Stock Analysis

• Market Cap: C$234.35M
• Dividend Yield: N/A
• Average Volume (3M): 28.12K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.96
• Revenue Growth: -16.20%
• EPS Growth: -38.85%
• Country: CA
• Employees: 330
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.41
• Shares Outstanding: 35,030,502
• 10 Day Avg. Volume: 29,419
• 30 Day Avg. Volume: 28,121
• PEG Ratio: <0.01
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 6.84
• 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$7.25
• Price Target Upside: 35.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): C$559.20M

• Rating: 72 Outperform
• Price Target: C$5.50 ▲(2.80% Upside)
• Action: Upgraded Date: 12/11/25
• Date: Action: Upgraded 12/11/25

Cathedral Energy Services receives a score of 72, driven primarily by its strong valuation and positive technical indicators. Despite mixed financial performance with declining revenue and cash flow concerns, the stock's low P/E ratio and bullish technical signals provide a favorable outlook. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Return on Equity

A 16.24% ROE indicates the company effectively converts shareholder equity into profits, reflecting operational efficiency and competitive service margins. Sustained ROE supports reinvestment capacity and investor returns over the medium term, aiding resilience through industry cycles.

Gross Profit Margin Stability

A stable gross margin near 22% shows durable pricing power or consistent cost control in core drilling and completion services. This underlying margin stability cushions operating earnings against revenue volatility and supports medium-term profitability even if top-line growth slows.

Specialized Service Business Model

A focused, contract-based service model in drilling, completions, and production optimization creates recurring fee, rental and performance-linked revenue streams. Specialized equipment and technical services foster client stickiness and raise barriers to entry, supporting durable market position.

Negative Factors

Declining Revenue

Material negative revenue growth reduces scale and erodes operating leverage, making it harder to absorb fixed costs and invest in service capability. Persistent top-line contraction over quarters can weaken competitive position and pressure margins and reinvestment capacity.

Weak Free Cash Flow

Negative FCF growth and a low FCF-to-net income ratio indicate limited cash available after capex, constraining debt paydown, equipment investment and strategic spending. Over months this restricts flexibility to fund growth or weather commodity-driven demand shocks.

Rising Leverage

An uptick in debt-to-equity signals growing financial leverage which raises interest and refinancing risk. Higher leverage reduces strategic optionality and amplifies earnings sensitivity to downturns, limiting capacity for capital allocation and increasing vulnerability in cyclical oil services markets.

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 primarily through its core service offerings, including drilling and completion services, which are billed on a contract basis to oil and gas exploration companies. Key revenue streams include fees for rig services, rental income from specialized equipment, and performance-based incentives linked to successful project outcomes. Additionally, the company may benefit from strategic partnerships with energy firms and technology providers, allowing for shared resources and enhanced service offerings, which can contribute to increased market share and revenue growth.

Cathedral Energy Services Financial Statement Overview

Summary

Cathedral Energy Services shows a mixed financial performance. While the gross profit margin is stable, the net profit margin has decreased, indicating reduced profitability. Revenue growth is negative, and there are concerns with cash flow. The balance sheet shows increased leverage, though return on equity remains strong.

Income Statement

Cathedral Energy Services shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 21.77%, slightly above the previous year's 21.31%. However, the net profit margin has decreased to 7.32% from 10.13% in the previous year, indicating reduced profitability. The revenue growth rate is negative at -5.76%, suggesting a decline in sales compared to the previous period. EBIT and EBITDA margins have also decreased, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet of Cathedral Energy Services indicates a moderate financial position. The debt-to-equity ratio has increased to 0.46 in the TTM, up from 0.37 in the previous year, suggesting higher leverage. However, the return on equity remains strong at 16.24%, though it has decreased from 23.97% in the previous year. The equity ratio is stable, indicating a balanced capital structure.

Cash Flow

Cash flow analysis reveals some concerns for Cathedral Energy Services. The free cash flow growth rate is negative at -6.93% in the TTM, indicating a decline in available cash. The operating cash flow to net income ratio is 0.81, showing a healthy conversion of income to cash. However, the free cash flow to net income ratio is 0.39, which is lower than desired, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.71M	571.78M	545.30M	319.01M	62.52M	40.57M
Gross Profit	108.02M	121.85M	105.33M	70.80M	-1.03M	-10.19M
EBITDA	69.79M	98.51M	77.60M	60.73M	5.27M	-8.64M
Net Income	27.34M	57.91M	10.63M	18.35M	-8.63M	-27.73M
Balance Sheet
Total Assets	458.00M	472.88M	403.73M	353.99M	75.42M	64.28M
Cash, Cash Equivalents and Short-Term Investments	14.14M	12.79M	10.73M	11.18M	2.90M	1.03M
Total Debt	102.30M	89.22M	97.26M	98.42M	21.80M	19.59M
Total Liabilities	208.70M	231.30M	224.26M	200.09M	32.92M	24.31M
Stockholders Equity	249.30M	241.58M	179.47M	153.90M	42.50M	39.97M
Cash Flow
Free Cash Flow	30.87M	32.73M	23.55M	12.02M	-9.12M	-1.53M
Operating Cash Flow	72.16M	90.18M	69.98M	39.88M	-3.50M	1.19M
Investing Cash Flow	-43.26M	-56.48M	-69.94M	-131.42M	877.00K	646.00K
Financing Cash Flow	-33.35M	-32.29M	-883.00K	97.58M	4.49M	-7.93M

Cathedral Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 5.35 is below the 20-day moving average (MA) of 6.19, below the 50-day MA of 5.67, and above the 200-day MA of 5.12, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 73.30 is Negative, neither overbought nor oversold. The STOCH value of 86.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKT.A	73 Outperform	C$114.09M	5.33	12.87%	―	24.94%	956.65%
ACX	72 Outperform	C$234.35M	8.49	11.51%	―	-16.20%	-38.85%
PHX	69 Neutral	C$539.92M	9.87	23.65%	10.44%	8.98%	-27.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ESI	56 Neutral	C$665.58M	-14.33	-3.50%	―	-2.47%	-246.73%
WRG	55 Neutral	C$84.95M	-3.27	-2.38%	―	-0.38%	6.98%
SDI	52 Neutral	C$35.99M	-450.00	-0.03%	―	-15.25%	-101.10%

Cathedral Energy Services Corporate Events

ACT Energy Technologies Buys Stryker Directional to Boost U.S. Drilling Footprint and Margins

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 States. Stryker, which averaged about 17 active jobs per day in 2025 and brings a fleet of 10 rotary steerable system tools and an experienced management team that will continue to lead the business, materially increases ACT’s U.S. job count and strengthens its technology portfolio. ACT expects to replace Stryker’s third‑party rented mud motors with its own inventory, targeting more than C$5 million in annual synergies, a payback period of under two and a half years, and accretion to net income, adjusted EBITDAS and free cash flow, while preserving financial flexibility through a balanced funding structure that also aligns Stryker’s leadership with ACT shareholders via equity and staged resale restrictions.

The most recent analyst rating on (TSE:ACX) stock is a Buy with a C$6.50 price target. To see the full list of analyst forecasts on Cathedral Energy Services stock, see the TSE:ACX Stock Forecast page.

ACT Energy Technologies Reports Resilient 2025 Q3 Results Amid Industry Challenges

ACT Energy Technologies, a company involved in the energy sector, reported its 2025 Q3 financial results, highlighting a decline in revenues to $118.3 million due to reduced industry activity, particularly in the U.S. Despite this, the company maintained a stable Adjusted EBITDA margin of 20% through cost reductions, notably from the deployment of its proprietary Measurement-While-Drilling systems. The company also focused on returning capital to shareholders and maintaining a strong liquidity position, with $68.7 million of undrawn capacity and a cash balance of $14.1 million. The operational results showed a decrease in both Canadian and U.S. operating days, attributed to market conditions and customer consolidation, but Canadian average revenues per operating day increased by 4%. The company’s U.S. adjusted gross margins improved by 15%, supported by reduced third-party rental costs.

The most recent analyst rating on (TSE:ACX) stock is a Buy with a C$6.00 price target. To see the full list of analyst forecasts on Cathedral Energy Services stock, see the TSE:ACX Stock Forecast page.