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Calfrac Well Services (TSE:CFW)
TSX:CFW
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Calfrac Well Services
(TSX:CFW)
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Rating:61Neutral
Price Target:
C$3.50
▲(2.94% Upside)
Calfrac Well Services scores a 61, driven primarily by mixed financial performance and neutral technical indicators. While profitability margins and valuation are reasonable, concerns about revenue growth and cash flow management weigh on the score. The absence of earnings call insights and corporate events limits additional context.
Positive Factors
Profitability Margins
Improved profitability margins indicate enhanced operational efficiency, which can lead to better financial health and competitive positioning.
Return on Equity
Improved return on equity suggests better utilization of shareholder funds, enhancing investor confidence and supporting long-term growth.
Operational Efficiency
Increased EBIT and EBITDA margins reflect improved operational efficiency, which can lead to sustained profitability and competitive advantage.
Negative Factors
Revenue Growth
Negative revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term business sustainability.
Cash Flow Challenges
Significant decline in free cash flow growth suggests liquidity issues, potentially affecting the company's ability to invest in growth opportunities.
Debt Levels
Rising debt levels, if not managed properly, could strain financial resources and limit the company's ability to navigate economic downturns.
Calfrac Well Services (CFW) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$269.69M
Dividend YieldN/A
Average Volume (3M)19.55K
Price to Earnings (P/E)27.4
Beta (1Y)0.89
Revenue Growth-8.13%
EPS Growth-28.00%
CountryCA
Employees2,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding85,889,460
10 Day Avg. Volume13,347
30 Day Avg. Volume19,551
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.50
Price to Sales (P/S)0.21
P/FCF Ratio-5.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.00Price Target Upside17.65% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Calfrac Well Services Business Overview & Revenue Model
Company DescriptionCalfrac Well Services (CFW) is a leading provider of specialized oilfield services focused primarily on hydraulic fracturing, coiled tubing, and other complementary services to the oil and gas industry. Operating primarily in North America, Latin America, and certain international markets, Calfrac delivers innovative and efficient solutions designed to enhance the production and extraction of oil and natural gas. The company's portfolio includes a range of services that support well completion and production optimization, catering to a diverse clientele from exploration and production companies.
How the Company Makes MoneyCalfrac Well Services generates revenue primarily through the provision of hydraulic fracturing services, which involve injecting high-pressure fluid into underground rock formations to enhance oil and gas extraction. Additional revenue streams include coiled tubing services, which involve the use of specially designed tubing to facilitate maintenance and repair of wells, and other related well services. The company charges clients based on the volume of services rendered, often structured as contracts that may include fixed pricing or variable rates depending on service complexity and market conditions. Significant partnerships with major oil and gas companies enhance Calfrac's market position and contribute to a steady flow of contracts. Economic factors such as oil and gas prices, drilling activity, and regulatory changes also play crucial roles in influencing the company's revenue performance.
Calfrac Well Services Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
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 shows mixed financial performance. Improvements in profitability margins and return on equity are positive, but declining revenue growth and significant cash flow challenges present concerns. The company needs to stabilize revenue and improve cash flow management.Income Statement
Calfrac Well Services shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth, with a negative growth rate of -1.48%. However, the company has improved its gross profit margin to 8.47% from 7.05% in the previous year, and its net profit margin has increased to 1.13% from 0.66%. The EBIT and EBITDA margins have also shown improvement, indicating better operational efficiency. Despite these improvements, the negative revenue growth rate poses a concern.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.55 in the TTM period, slightly up from 0.53 in the previous year. The company's return on equity has improved to 2.78% from 1.59%, indicating better utilization of equity. The equity ratio remains strong, suggesting a solid capital structure. However, the increase in debt levels over time could be a potential risk if not managed properly.70
Positive
Cash Flow
Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -196.99% in the TTM period. The operating cash flow to net income ratio is 0.22, indicating that operating cash flows are not fully covering net income. Additionally, the free cash flow to net income ratio is negative, suggesting cash flow issues. These factors highlight potential liquidity concerns that need addressing.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.58B | 1.57B | 1.86B | 1.50B | 880.25M | 705.44M |
| Gross Profit | 140.38M | 110.49M | 268.13M | 154.61M | -18.62M | -101.14M |
| EBITDA | 205.66M | 177.35M | 352.93M | 193.06M | 44.06M | 107.68M |
| Net Income | 9.86M | 10.38M | 190.67M | 11.68M | -82.81M | -324.24M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.23B | 1.13B | 995.75M | 892.96M | 912.46M |
| Cash, Cash Equivalents and Short-Term Investments | 51.76M | 44.05M | 34.14M | 8.50M | -20.56M | 29.83M |
| Total Debt | 373.08M | 344.39M | 275.20M | 354.91M | 410.39M | 346.60M |
| Total Liabilities | 623.36M | 581.51M | 510.29M | 572.78M | 564.12M | 502.23M |
| Stockholders Equity | 655.81M | 653.33M | 615.90M | 422.97M | 328.84M | 410.23M |
Cash Flow | ||||||
| Free Cash Flow | 40.37M | -58.95M | 113.00M | 27.72M | -78.77M | -21.67M |
| Operating Cash Flow | 186.31M | 127.18M | 281.63M | 107.53M | -15.34M | 24.52M |
| Investing Cash Flow | -144.25M | -169.65M | -144.77M | -74.33M | -61.29M | -42.52M |
| Financing Cash Flow | -21.39M | 43.94M | -84.13M | -33.53M | 45.85M | 8.60M |
Calfrac Well Services Technical Analysis
Positive
3.40
Price Trends
3.23
Positive
3.33
Positive
3.38
Positive
Market Momentum
0.09
Negative
59.50
Neutral
85.25
Negative
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 3.4 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.23, and above the 200-day MA of 3.38, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 is Negative, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$2.17B | 12.25 | 12.48% | 0.79% | 5.92% | ― | |
80 Outperform | $1.22B | 10.06 | 18.06% | 3.80% | 9.24% | 6.35% | |
76 Outperform | $2.63B | 15.40 | 22.50% | 1.26% | 5.79% | -5.08% | |
69 Neutral | C$537.71M | 8.97 | 10.51% | 2.70% | 15.58% | 47.55% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | C$269.69M | 27.35 | 3.20% | ― | -8.13% | -28.00% | |
58 Neutral | C$399.37M | -19.59 | -1.94% | ― | -9.19% | -119.27% |
* Energy Sector Average
TSE:CFW
Calfrac Well Services
3.31
-0.46
-12.20%
TSE:CEU
CES Energy Solutions
12.55
2.96
30.91%
TSE:EFX
Enerflex
19.20
6.34
49.33%
TSE:TOT
Total Energy Services
14.72
3.49
31.08%
TSE:TCW
Trican Well Service
5.97
1.29
27.46%
TSE:STEP
STEP Energy Services
5.48
0.40
7.87%
Calfrac Well Services Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Calfrac Well Services Achieves Strong Q2 2025 Performance Amid Strategic Adjustments
Positive
Aug 8, 2025
Calfrac Well Services reported a strong second quarter in 2025, with a 39% increase in Adjusted EBITDA to $77 million, driven by improved performance in North America and Argentina. The company amended its credit facility to include a $120 million term loan, enhancing financial flexibility. Despite a decrease in North American activity, Calfrac’s modernization efforts and strategic focus on Argentina’s market are expected to sustain robust cash flow and support debt reduction.
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.
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.