Calfrac Well Services (CFW) AI Stock Analysis

• Market Cap: C$310.92M
• Dividend Yield: N/A
• Average Volume (3M): 25.36K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.77
• Revenue Growth: -5.50%
• EPS Growth: -88.55%
• Country: CA
• Employees: 2,200
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.07
• Shares Outstanding: 85,889,460
• 10 Day Avg. Volume: 35,649
• 30 Day Avg. Volume: 25,363
• PEG Ratio: 0.23
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.95
• 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$3.50
• Price Target Upside: -3.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: C$4.00 ▲(10.50%Upside)

Calfrac Well Services shows a promising recovery with strong technical momentum and positive corporate developments. While valuation is reasonable, cash flow concerns remain a risk factor. The company's strategic growth in Argentina and stable governance enhance its market position, driving a moderately positive outlook.

Calfrac Well Services Business Overview & Revenue Model

Company Description

Calfrac Well Services Ltd. is a leading provider of specialized oilfield services with a focus on hydraulic fracturing, coiled tubing, cementing, and other well stimulation services. Headquartered in Calgary, Alberta, the company operates in key oil and natural gas markets across North America, Russia, and South America, serving a diverse client base of oil and gas producers. Calfrac is recognized for its commitment to safety, innovation, and the efficient delivery of technical solutions that enhance the extraction and production of hydrocarbons.

How the Company Makes Money

Calfrac Well Services generates revenue primarily through the provision of hydraulic fracturing services, which involves injecting fluid into oil and gas wells to increase the flow of hydrocarbons. This process is critical for enhancing production in both conventional and unconventional reservoirs. The company also earns money from coiled tubing services, which involve the use of a continuous length of tubing for well intervention and maintenance, and from cementing services that secure well casings. Key revenue streams include service contracts with oil and gas companies, equipment rentals, and the sale of proprietary chemicals and fluids used in well stimulation. Calfrac's earnings are influenced by the global demand for oil and gas, regional production activity, and its strategic partnerships with major energy producers.

Calfrac Well Services Financial Statement Overview

Summary

Calfrac Well Services demonstrates a modest recovery in financial performance. The income statement indicates improved profitability with a positive net profit margin and healthy EBIT and EBITDA margins. The balance sheet is stable with a balanced debt-to-equity ratio, but cash flow remains a concern due to negative free cash flow, impacting financial flexibility.

Income Statement

Calfrac Well Services has shown a strong recovery in its income statement metrics. The TTM gross profit margin stands at 8.46%, an improvement from previous years, and the net profit margin is 1.13%, signaling a return to profitability. Revenue growth over the past year is 2.55%, which is modest but positive. The EBIT and EBITDA margins are healthy at 4.92% and 12.33% respectively, indicating efficient operations despite past challenges.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.55, suggesting a balanced approach to leveraging. The return on equity is modest at 2.75%, indicating room for improvement in shareholder returns. The equity ratio is 52.62%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow metrics present mixed results. The free cash flow growth rate is negative, indicating challenges in generating positive free cash flow. The operating cash flow to net income ratio is robust at 6.98, suggesting strong cash generation relative to net income. However, the negative free cash flow to net income ratio highlights the need for better capital expenditure management.

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
EBITDA	177.35M	352.93M	193.06M	44.06M	107.68M
Net Income	10.38M	190.67M	35.30M	-82.81M	-324.24M
Balance Sheet
Total Assets	1.23B	1.13B	995.75M	892.96M	912.46M
Cash, Cash Equivalents and Short-Term Investments	44.05M	34.14M	8.50M	-20.56M	29.83M
Total Debt	344.39M	275.20M	354.91M	410.39M	346.60M
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

• Technical Analysis Sentiment: Positive
• Last Price: 3.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 3.62 is above the 20-day moving average (MA) of 3.47, above the 50-day MA of 3.41, and below the 200-day MA of 3.67, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 81.37 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
TOT	79 Outperform	C$416.98M	6.79	11.38%	3.39%	11.02%	102.23%
CEU	76 Outperform	$1.66B	9.54	23.66%	1.98%	8.79%	31.76%
TCW	76 Outperform	$997.80M	10.79	19.44%	3.40%	2.15%	-5.97%
STEP	66 Neutral	C$330.46M	151.92	-3.90%	―	-5.98%	-121.37%
CFW	65 Neutral	C$310.92M	17.10	3.00%	―	-5.50%	-88.55%
EFX	64 Neutral	C$1.38B	13.41	7.03%	0.13%	1.22%	―
Sector *	52 Neutral	C$2.96B	-1.54	-3.48%	6.52%	3.05%	-49.39%

Calfrac Well Services Corporate Events

Calfrac Announces Successful Election of Directors

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.

Calfrac Reports Strong Q1 2025 Results with Record Performance in Argentina

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.