Calfrac Well Services (CFW) AI Stock Analysis

• Market Cap: C$348.13M
• Dividend Yield: N/A
• Average Volume (3M): 19.55K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.76
• Revenue Growth: -8.13%
• EPS Growth: -28.00%
• Country: CA
• Employees: 2,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.06
• Shares Outstanding: 98,900,600
• 10 Day Avg. Volume: 13,347
• 30 Day Avg. Volume: 19,551
• 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 Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.00
• Price Target Upside: -3.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$3.50 ▼(-15.46% Downside)

Calfrac Well Services' overall stock score is driven by its strong cash flow generation and stable financial structure, despite challenges in revenue growth and shareholder returns. The technical analysis suggests a neutral market sentiment, while the valuation is reasonable but not particularly attractive. The absence of earnings call data and notable corporate events limits further insights.

Positive Factors

Cash Generation

Strong cash flow growth provides a financial cushion for future investments and debt repayments, enhancing long-term stability.

Profitability Margins

Improved profitability margins suggest better operational efficiency, which can lead to sustainable long-term earnings growth.

Stable Capital Structure

A stable capital structure with manageable leverage enhances financial flexibility and reduces risk, supporting long-term operations.

Negative Factors

Declining Revenue Growth

Declining revenue growth can limit future profitability and market share, posing a challenge to long-term business expansion.

Low Return on Equity

Low ROE indicates inefficiency in generating returns on shareholder investments, which can affect investor confidence and capital attraction.

Low Net Profit Margin

A low net profit margin suggests challenges in converting sales into profits, potentially impacting long-term financial health and competitiveness.

Calfrac Well Services Business Overview & Revenue Model

Company Description

Calfrac 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 Money

Calfrac 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 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 focus on stabilizing revenue and improving 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.57B	1.86B	1.50B	880.25M	705.44M
Gross Profit	129.79M	110.49M	268.13M	154.61M	-18.62M	-101.14M
EBITDA	197.20M	177.35M	352.93M	193.06M	44.06M	107.68M
Net Income	20.21M	10.38M	190.67M	11.68M	-82.81M	-324.24M
Balance Sheet
Total Assets	1.23B	1.23B	1.13B	995.75M	892.96M	912.46M
Cash, Cash Equivalents and Short-Term Investments	579.00K	44.05M	34.14M	8.50M	-20.56M	29.83M
Total Debt	330.21M	344.39M	275.20M	354.91M	410.39M	346.60M
Total Liabilities	559.42M	581.51M	510.29M	572.78M	564.12M	502.23M
Stockholders Equity	667.90M	653.33M	615.90M	422.97M	328.84M	410.23M
Cash Flow
Free Cash Flow	59.27M	-58.95M	113.00M	27.72M	-78.77M	-21.67M
Operating Cash Flow	208.62M	127.18M	281.63M	107.53M	-15.34M	24.52M
Investing Cash Flow	-149.44M	-169.65M	-144.77M	-74.33M	-61.29M	-42.52M
Financing Cash Flow	-56.76M	43.94M	-84.13M	-33.53M	45.85M	8.60M

Calfrac Well Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.14
• 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:CFW, the sentiment is Positive. The current price of 4.14 is above the 20-day moving average (MA) of 3.42, above the 50-day MA of 3.25, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 81.06 is Negative, neither overbought nor oversold. The STOCH value of 82.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	78 Outperform	$1.23B	10.29	18.06%	3.57%	9.24%	6.35%
SHLE	74 Outperform	C$195.19M	8.87	11.94%	―	-0.39%	-86.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$348.13M	17.95	3.20%	―	-8.13%	-28.00%
TVK	64 Neutral	C$3.54B	38.47	15.90%	0.43%	50.38%	25.63%
STEP	56 Neutral	C$400.15M	-49.68	-1.94%	―	-9.19%	-119.27%
SFD	45 Neutral	C$31.41M	-5.20	-51.99%	―	418.77%	56.71%

Calfrac Well Services Corporate Events

Calfrac Well Services Initiates Rights Offering to Redeem Debt

Calfrac Well Services Ltd. has announced a rights offering to raise C$35 million, backed by existing directors and shareholders. The proceeds, along with additional credit facility drawdowns, will be used to redeem outstanding second lien secured notes before their 2026 maturity, improving the company’s financial position and reducing debt obligations.

Calfrac Well Services Reports Strong Q3 2025 Results and Announces Rights Offering

Calfrac Well Services reported a strong financial performance for the third quarter of 2025, with an adjusted EBITDA of $48.5 million and a net income of $4.3 million, driven by improved operations in North America and successful fund repatriation from Argentina. The company announced a $35 million rights offering to strengthen its financial position and reduce long-term debt, with major shareholders showing strong support by agreeing to purchase any unsubscribed shares, reflecting confidence in Calfrac’s long-term strategy.