Trican Well Service (TCW) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 3.15%
• Average Volume (3M): 612.74K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.99
• Revenue Growth: 9.24%
• EPS Growth: 6.35%
• Country: CA
• Employees: 1,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.15
• Shares Outstanding: 212,233,020
• 10 Day Avg. Volume: 505,243
• 30 Day Avg. Volume: 612,738
• PEG Ratio: -5.24
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 12.85
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 6.28
• 1Y Price Target: $6.91
• Price Target Upside: 9.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: C$7.50 ▲(18.30% Upside)

Trican Well Service's strong financial performance and positive earnings outlook are the most significant factors driving its stock score. The company's strategic initiatives and reasonable valuation further support its potential for growth, although technical indicators suggest caution due to potential overvaluation.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Trican's services, enhancing its market position and supporting long-term financial stability.

Cash Flow Generation

Improved cash flow generation enhances Trican's ability to invest in growth opportunities and manage financial obligations, supporting sustainable operations.

Technological Advancements

Investing in natural gas solutions positions Trican as an environmentally responsible leader, potentially attracting more clients and reducing operational costs.

Negative Factors

Oil Price Volatility

Volatility in oil prices can lead to project delays or cancellations, impacting Trican's revenue and operational planning, posing a risk to financial performance.

Acquisition Costs

Acquisition costs can strain financial resources and impact short-term profitability, requiring careful management to ensure long-term benefits from acquisitions.

Pricing Pressure

Competitive pricing pressure and declining rig counts can compress margins and reduce profitability, challenging Trican's ability to maintain its market position.

Trican Well Service Business Overview & Revenue Model

Company Description

Trican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design, and laboratory solutions, as well as surface, intermediate, production, liner, horizontal, and remedial/squeeze cementing services; and cement pumpers, bulk equipment, and cement auxiliary equipment. It also provides reservoir solutions, such as exploration, production analysis, and simulation and modeling services; and coiled tubing solutions comprising coiled tubing fracturing and acidizing, specially designed tools, in-house engineering, well cleanouts, milling, high pressure jetting, e-coil, nitrogen gas lifting, and production enhancement, as well as equipment and tools. In addition, the company offers acidizing and production enhancement services that include production and injection well enhancement services, and equipment; well intervention tools; and fracturing solutions and equipment. Trican Well Service Ltd. was incorporated in 1979 and is headquartered in Calgary, Canada.

How the Company Makes Money

Trican Well Service generates revenue primarily through its pressure pumping services, which include hydraulic fracturing and cementing. The company charges clients based on the volume of services provided and the complexity of the operations performed. Key revenue streams include contracts with oil and gas exploration and production companies, which often involve multi-year agreements that provide steady cash flow. Additionally, TCW benefits from partnerships with major energy firms, allowing it to secure substantial projects and maintain a competitive edge in the market. Fluctuations in oil and gas prices, as well as demand for energy services, significantly influence the company's earnings, making it sensitive to market conditions.

Trican Well Service Financial Statement Overview

Summary

Trican Well Service exhibits strong financial performance with robust revenue growth and profitability. The company benefits from a stable balance sheet with low leverage and impressive cash flow metrics, highlighting efficient cash management. Minor fluctuations in margins and equity do not significantly detract from the overall solid financial health.

Income Statement

Trican Well Service has demonstrated strong revenue growth, particularly in the TTM period with a 20.5% increase. The company maintains healthy margins with a gross profit margin of 19.2% and a net profit margin of 10.7% in the TTM. EBIT and EBITDA margins are also robust at 14.3% and 22.2%, respectively. These figures indicate solid profitability and operational efficiency, although there is a slight decline in margins compared to previous years.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.041, indicating minimal leverage. Return on equity is strong at 21.2%, showcasing effective use of equity to generate profits. The equity ratio stands at 74.5%, highlighting a solid equity base. However, the slight decrease in stockholders' equity over time suggests a need for careful management of equity resources.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 33.7% in the TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 2.04 suggests strong cash flow relative to net income, while the free cash flow to net income ratio of 0.71 reflects efficient cash conversion. These metrics underscore the company's strong cash flow position, although fluctuations in free cash flow growth in previous years warrant attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	969.97M	980.84M	972.68M	866.29M	562.48M	397.02M
Gross Profit	185.93M	190.00M	201.15M	150.34M	43.29M	-40.57M
EBITDA	215.09M	225.54M	238.76M	190.68M	101.76M	-144.44M
Net Income	103.43M	109.48M	121.01M	79.22M	12.06M	-233.32M
Balance Sheet
Total Assets	639.34M	683.07M	710.44M	671.12M	577.84M	563.21M
Cash, Cash Equivalents and Short-Term Investments	36.34M	26.28M	88.75M	58.11M	29.51M	22.61M
Total Debt	19.68M	20.01M	18.14M	42.39M	10.32M	13.77M
Total Liabilities	162.84M	194.68M	193.38M	166.45M	88.44M	70.94M
Stockholders Equity	476.50M	488.39M	517.07M	504.67M	489.40M	492.27M
Cash Flow
Free Cash Flow	154.38M	79.78M	169.17M	48.61M	20.21M	57.98M
Operating Cash Flow	216.99M	154.84M	248.46M	152.23M	74.10M	70.77M
Investing Cash Flow	-76.56M	-75.92M	-75.09M	-85.80M	-39.35M	13.26M
Financing Cash Flow	-140.07M	-141.39M	-142.73M	-37.83M	-27.84M	-68.67M

Trican Well Service Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TCW, the sentiment is Positive. The current price of 6.34 is above the 20-day moving average (MA) of 5.79, above the 50-day MA of 5.77, and above the 200-day MA of 5.09, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 67.26 is Neutral, neither overbought nor oversold. The STOCH value of 71.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TCW.

Trican Well Service Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	81 Outperform	$1.22B	10.06	18.06%	3.15%	9.24%	6.35%
EFX	80 Outperform	C$2.17B	12.25	12.48%	0.78%	5.92%	―
CEU	76 Outperform	$2.77B	16.19	22.50%	1.22%	5.79%	-5.08%
TOT	75 Outperform	C$553.33M	9.13	10.51%	2.63%	15.58%	47.55%
CFW	73 Outperform	C$269.69M	27.35	3.20%	―	-8.13%	-28.00%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
STEP	59 Neutral	C$399.37M	-19.59	-1.94%	―	-9.19%	-119.27%

Trican Well Service Corporate Events

Trican Well Service Expands and Extends Credit Facility

Trican Well Service Ltd. has successfully expanded and extended its Revolving Credit Facility from $150 million to $200 million, with a new maturity date set for December 5, 2028. This move enhances the company’s financial flexibility, supporting its operational needs and strategic growth initiatives, and highlights its strong financial position and commitment to delivering long-term value to stakeholders.

Trican Well Service Unveils $122 Million Capital Budget for 2026

Trican Well Service Ltd. has announced a 2026 capital budget of $122 million, focusing on maintenance and targeted growth to ensure reliability and efficiency across its divisions. The budget includes $40 million for Canada’s first 100% natural gas-fueled hydraulic fracturing fleet, expected to be operational in the latter half of 2026, positioning the company for future opportunities and long-term growth.

Trican Well Service Reports Strong Q3 2025 Results and Strategic Acquisition

Trican Well Service Ltd. reported strong third-quarter results for 2025, with revenue increasing to $300.6 million compared to the previous year, driven by an acquisition and increased operational activity despite weak commodity prices. The company also announced the completion of its strategic acquisition of Iron Horse Coiled Tubing Inc., which is expected to bolster its service offerings and market position in the Western Canadian Sedimentary Basin. Additionally, Trican continues its return of capital strategy through its Normal Course Issuer Bid (NCIB) program, purchasing and canceling a significant number of shares, and has renewed the program for another year.

Trican Well Service to Announce Q3 2025 Results

Trican Well Service Ltd. has announced that it will release its Third Quarter 2025 financial results on October 28, 2025, after the market closes. The company will hold a conference call on October 29, 2025, to discuss these results, which could provide insights into its operational performance and market positioning within the oil and gas industry.

Trican Well Service Renews Share Buyback Program for 2025-2026

Trican Well Service Ltd. has announced the renewal of its normal course issuer bid (NCIB) program, allowing the company to repurchase up to 18,405,613 common shares, representing 10% of its public float, between October 2025 and October 2026. This move underscores Trican’s commitment to providing shareholder returns and maintaining a prudent capital structure, as the company has repurchased a significant portion of its shares since 2017, reflecting its strategic focus on shareholder value.