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Calfrac Well Services (TSE:CFW)
TSX:CFW
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Calfrac Well Services
(TSX:CFW)
Rating:65Neutral
Price Target:
C$4.00
▲(14.29%Upside)
Calfrac Well Services (CFW) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$300.61M
Dividend YieldN/A
Average Volume (3M)23.98K
Price to Earnings (P/E)16.5
Beta (1Y)0.85
Revenue Growth-5.50%
EPS Growth-88.55%
CountryCA
Employees2,200
SectorEnergy
Sector Strength67
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding85,889,460
10 Day Avg. Volume17,585
30 Day Avg. Volume23,981
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.61
Price to Sales (P/S)0.00
P/FCF Ratio9.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.25Price Target Upside-7.14% Downside
Rating ConsensusHold
Number of Analyst Covering1
Calfrac Well Services Business Overview & Revenue Model
Company DescriptionCalfrac Well Services Ltd., together with its subsidiaries, provides specialized oilfield services in Canada, the United States, and Argentina. It offers hydraulic fracturing, coiled tubing, cementing, and other well stimulation services, as well as pressure pumping services to oil and natural gas industries. The company was founded in 1999 and is headquartered in Calgary, Canada.
How the Company Makes MoneyCalfrac Well Services generates revenue through its comprehensive range of oilfield services, particularly hydraulic fracturing, which involves injecting high-pressure fluid into wells to enhance oil and gas recovery. The company's revenue model is primarily project-based, where they are contracted by oil and gas producers to perform these specialized services. Key revenue streams include fees for fracturing services, equipment rentals, and the sale of related products. Calfrac's earnings are significantly influenced by the demand for oil and gas, oil prices, and the exploration and production activities of their clients. Additionally, strategic partnerships and long-term contracts with major oil and gas companies contribute to its financial stability and growth.
Calfrac Well Services Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2024)
| % Change Since: 0.86%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While Calfrac achieved significant safety milestones and expanded operations in Argentina, financial metrics showed notable declines, particularly in North America due to market challenges and asset write-offs. The company's focus on fleet modernization and Argentina's growth prospects offer positive outlooks, but tariff uncertainties and U.S. market pressures pose challenges.Q4-2024 Updates
Positive Updates
Record Safety Performance
Calfrac achieved a new record in safety with a TRIF of 0.92, improved from 1.05 in 2023, demonstrating a strong safety culture.
Fleet Modernization and Expansion
The company ended the year with 66 Tier IV pumps and plans to operate five Tier IV fleets in North America by the end of Q1 2025. Additionally, Calfrac expanded its operations in Argentina, deploying a second large fracturing fleet into the Vaca Muerta shale play earlier than planned.
Argentina Growth Prospects
Record financial results in Argentina were driven by higher fracturing activity, with further expansion planned in the Vaca Muerta shale play, supported by a $50 million capital investment funded locally.
Balance Sheet Strength
Calfrac had $273.9 million in working capital at the end of Q4 2024, including $44 million in cash. The company maintained a net debt to adjusted EBITDA ratio of 1.57 and was compliant with bank covenants.
Negative Updates
Revenue and EBITDA Decline
Q4 2024 revenue was $381.2 million, down 10% from the same period in 2023. Adjusted EBITDA fell 45% to $34.5 million due to lower utilization in North America and weaker pricing in the U.S.
Net Loss and Asset Write-off
Calfrac reported a net loss of $6.4 million in Q4 2024, compared to a net income of $13.2 million in Q4 2023. This was impacted by a $12.7 million write-off of obsolete fracturing assets in the U.S. and a one-time depreciation expense adjustment.
Challenges in U.S. Market
The U.S. market faced lower activity and pricing, with a notable 10% revenue decline from the previous year, coupled with a challenging start to Q1 2025.
Tariff Impact and Cost Pressures
The introduction of tariffs is anticipated to impact costs of imported items, such as sand and chemicals, from the U.S., adding uncertainty to the supply chain.
Company Guidance
During the Calfrac Well Services Limited Fourth Quarter 2024 earnings call, the company provided several key metrics and guidance for the future. The fourth quarter revenue from continuing operations was reported at $381.2 million, a 10% decrease compared to the same period in 2023, primarily due to lower activity and pricing in the U.S. Adjusted EBITDA was $34.5 million, marking a 45% decline year-over-year. The company recorded a net loss of $6.4 million, contrasted with a net income of $13.2 million in the previous year, affected by a $12.7 million write-off of obsolete assets and a 12.2 impact on depreciation expense. Calfrac's working capital stood at $273.9 million, including $44 million in cash. The Board approved a capital budget of $135 million for 2025, with $50 million allocated for expansion in Argentina. The company ended the year with a net debt to adjusted EBITDA ratio of 1.57. Looking ahead, Calfrac plans to operate five Tier IV fracturing fleets in North America by the end of the first quarter and continue expanding in Argentina with two large fracturing fleets in the Vaca Muerta shale play. The company remains optimistic about its prospects in 2025, despite challenges such as tariffs affecting input costs and seasonal slowdowns.Calfrac Well Services Financial Statement Overview
Summary
Calfrac Well Services demonstrates a mixed financial performance. The income statement shows declining profit margins and volatile revenue, while the balance sheet reflects moderate stability with slight increases in leverage. Cash flow challenges are notable, with negative free cash flow and deteriorating ratios, indicating potential liquidity issues.Income Statement
The income statement shows a mixed performance. The gross profit margin for 2023 was 17.15%, but it declined to 7.05% in 2024. The net profit margin also decreased from 10.23% in 2023 to 0.66% in 2024. Revenue growth has been volatile, with a decrease of 15.92% from 2023 to 2024. EBIT and EBITDA margins have seen significant fluctuations, indicating instability in core operations.65
Positive
Balance Sheet
Calfrac Well Services' balance sheet reflects moderate stability. The debt-to-equity ratio improved from 0.45 in 2023 to 0.53 in 2024, suggesting a slight increase in leverage. The return on equity decreased from 30.96% in 2023 to 1.59% in 2024, indicating lower profitability. The equity ratio improved slightly, showcasing a stable asset base.70
Positive
Cash Flow
Cash flow analysis reveals challenges. Free cash flow turned negative in 2024, showing a decline from 2023. The operating cash flow to net income ratio decreased from 1.48 in 2023 to 12.25 in 2024, while the free cash flow to net income ratio deteriorated significantly, indicating potential liquidity issues.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.57B | 1.86B | 1.50B | 1.00B | 705.44M |
| Gross Profit | ||||
| 110.49M | 268.13M | 154.61M | -18.62M | -101.14M |
| EBIT | ||||
| 45.66M | 207.51M | 92.41M | -64.22M | -150.02M |
| EBITDA | ||||
| 177.35M | 352.93M | 193.06M | 44.06M | 107.68M |
| Net Income Common Stockholders | ||||
| 10.38M | 190.67M | 35.30M | -82.81M | -324.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.05M | 34.14M | 8.50M | -20.56M | 29.83M |
| Total Assets | ||||
| 1.23B | 1.13B | 995.75M | 892.96M | 912.46M |
| Total Debt | ||||
| 344.39M | 275.20M | 354.91M | 410.39M | 346.60M |
| Net Debt | ||||
| 300.35M | 241.06M | 346.41M | 430.96M | 316.77M |
| Total Liabilities | ||||
| 581.51M | 510.29M | 572.78M | 564.12M | 502.23M |
| Stockholders Equity | ||||
| 653.33M | 615.90M | 422.97M | 328.84M | 410.23M |
| Cash Flow | Free Cash Flow | |||
| -58.95M | 113.00M | 27.72M | -78.77M | -21.67M |
| Operating Cash Flow | ||||
| 127.18M | 281.63M | 107.53M | -15.34M | 24.52M |
| Investing Cash Flow | ||||
| -169.65M | -144.77M | -74.33M | -61.29M | -42.52M |
| Financing Cash Flow | ||||
| 43.94M | -84.13M | -33.53M | 45.85M | 8.60M |
Calfrac Well Services Technical Analysis
Positive
3.50
Price Trends
3.37
Positive
3.58
Negative
3.73
Negative
Market Momentum
0.02
Negative
57.61
Neutral
57.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CFW, the sentiment is Positive. The current price of 3.5 is above the 20-day moving average (MA) of 3.35, above the 50-day MA of 3.37, and below the 200-day MA of 3.73, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 57.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CFW.
Calfrac Well Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$300.61M | 16.53 | 3.00% | ― | -5.50% | -88.55% | |
58 Neutral | $7.57B | 3.50 | -4.45% | 10.15% | 0.79% | -49.51% | |
| $1.11B | 9.02 | 23.66% | 2.32% | ― | ― | ||
80 Outperform | C$408.44M | 6.60 | 11.38% | 3.67% | 11.02% | 102.23% | |
71 Outperform | C$1.32B | 12.97 | 7.03% | 1.41% | 1.22% | ― | |
| $634.18M | 9.11 | 19.44% | 4.22% | ― | ― | ||
64 Neutral | C$275.99M | 151.92 | -3.90% | ― | -5.98% | -121.37% |
* Energy Sector Average
Performance Comparison
TSE:CFW
Calfrac Well Services
3.50
-0.45
-11.39%
CESDF
CES Energy Solutions
5.09
0.05
0.99%
TSE:EFX
Enerflex
10.78
4.24
64.83%
TSE:TOT
Total Energy Services
10.99
1.94
21.44%
TOLWF
Trican Well Service
3.38
0.20
6.29%
TSE:STEP
STEP Energy Services
3.80
-0.20
-5.00%
Calfrac Well Services Corporate Events
Executive/Board ChangesShareholder Meetings
Calfrac Announces Successful Election of Directors
Positive
May 15, 2025
Calfrac Well Services Ltd. announced the successful election of its board of directors at the annual shareholders’ meeting, with all nominees elected to serve until the next meeting. This election reinforces Calfrac’s commitment to maintaining stable governance and potentially strengthens its market position in the oilfield services industry.
The most recent analyst rating on (TSE:CFW) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on Calfrac Well Services stock, see the TSE:CFW Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Calfrac Reports Strong Q1 2025 Results with Record Performance in Argentina
Positive
May 15, 2025
Calfrac Well Services reported a strong financial performance for the first quarter of 2025, driven by record results in Argentina. The company achieved a 12% increase in revenue compared to the same period in 2024, primarily due to higher pricing and activity in Argentina’s Vaca Muerta shale play. Despite a seasonal slowdown in North America, Calfrac’s adjusted EBITDA more than doubled, reflecting the successful deployment of a second fracturing fleet in Argentina. The company also reported a net income of $7.8 million, a significant turnaround from a loss in the previous year, and plans to repatriate investments from Argentina to Canada by the third quarter of 2025.
The most recent analyst rating on (TSE:CFW) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on Calfrac Well Services stock, see the TSE:CFW Stock Forecast page.
Financial Disclosures
Calfrac Well Services to Announce Q1 2025 Financial Results
Neutral
Apr 9, 2025
Calfrac Well Services Ltd. announced that it will release its first quarter 2025 financial results on May 15, 2025, before the market opens. The company has scheduled a conference call and webcast for the same day to discuss the results. This announcement highlights Calfrac’s commitment to transparency and communication with its stakeholders, potentially impacting its market positioning by keeping investors informed about its financial performance.
Executive/Board ChangesBusiness Operations and Strategy
Calfrac Well Services Announces CEO Resignation
Neutral
Mar 14, 2025
Calfrac Well Services Ltd. announced the immediate resignation of its CEO, Pat Powell, who also stepped down from his position as a director. The company has expressed gratitude for Powell’s contributions over the past three years and will begin the search for a permanent replacement. This leadership change comes at a time when Calfrac continues to focus on its core operations in North America and Argentina, maintaining its commitment to safety, efficiency, and profitability.
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.