Trican Well Service (TCW) AI Stock Analysis

• Market Cap: C$861.63M
• Dividend Yield: 4.22%
• Average Volume (3M): 492.89K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.59
• Revenue Growth: 2.15%
• EPS Growth: -5.97%
• Country: CA
• Employees: 1,200
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.17
• Shares Outstanding: 186,499,250
• 10 Day Avg. Volume: 406,556
• 30 Day Avg. Volume: 492,891
• PEG Ratio: N/A
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.44
• 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$5.34
• Price Target Upside: 15.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: C$5.00 ▲(8.23%Upside)

Trican Well Service's strong financial foundation and attractive valuation are key strengths, supporting the stock's potential for growth. Technical indicators present a mixed picture, while challenges with pricing pressures and decreased EBITDA are notable. The company's strategic initiatives and shareholder support further bolster its position.

Positive Factors

Customer Base

Trican Well maintains one of the best customer lists in Canada, which should allow for stability in results next year.

Dividends

The company raised its quarterly dividend by 11%, reflecting an annualized yield of more than 4%.

Share Buyback

The company has repurchased 3.9 million shares, equating to about 20% of the current buyback program.

Negative Factors

Growth Prospects

The lack of growth into 2025 combined with TCW's relatively expensive valuation causes a more neutral approach to the shares.

Trican Well Service Business Overview & Revenue Model

Company Description

Trican Well Service Ltd. is a Canadian-based oilfield services company that provides a comprehensive range of specialized products, equipment, and services primarily to the oil and gas industry. Operating mainly in Canada, Trican's core services include hydraulic fracturing, cementing, and coiled tubing. The company is dedicated to delivering high-quality, efficient, and environmentally responsible services to enhance the productivity and operational effectiveness of its clients' wells.

How the Company Makes Money

Trican Well Service generates revenue primarily through its service offerings to oil and gas exploration and production companies. The company's key revenue streams include hydraulic fracturing services, which help increase the extraction of oil and natural gas from wells; cementing services, essential for securing and isolating wellbore zones; and coiled tubing services, used for various well intervention and maintenance activities. Trican's earnings are significantly influenced by the levels of oil and gas exploration and production activities, which in turn depend on factors such as global oil prices and demand. The company also benefits from strategic partnerships and contracts with major oil and gas companies, which provide a steady flow of service requests and long-term business stability.

Trican Well Service Financial Statement Overview

Summary

Trican Well Service is financially sound with strong profitability, as evidenced by a robust EBITDA margin of 22.99% and a healthy return on equity of 22.42%. However, the slight dip in net profit margin and free cash flow requires attention.

Income Statement

Trican Well Service exhibited a solid financial performance with a gross profit margin of 19.38% and an EBIT margin of 15.14% for 2024. The company demonstrated a steady revenue growth from 2023 to 2024, although the net profit margin slightly declined to 11.16%, suggesting some cost pressures. Despite these challenges, the EBITDA margin remained robust at 22.99%, indicating strong operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.04, reflecting prudent financial leverage. The equity ratio stands at 71.50%, showcasing a solid equity base. Return on equity is healthy at 22.42%, indicating effective use of shareholders' equity to generate profits.

Cash Flow

Cash flow analysis highlights a decrease in free cash flow from 2023 to 2024, with free cash flow to net income ratio at 0.73. This suggests efficient conversion of income into cash flow despite the decline. The operating cash flow to net income ratio is robust at 1.41, indicating strong cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
980.84M	972.68M	866.29M	562.48M	397.02M
	Gross Profit
190.00M	201.15M	150.34M	43.29M	-40.57M
	EBIT
148.51M	161.62M	110.18M	14.22M	-70.77M
	EBITDA
225.54M	238.76M	190.68M	101.76M	-144.44M
	Net Income Common Stockholders
109.48M	121.01M	79.22M	12.06M	-233.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.28M	88.75M	58.11M	29.51M	22.61M
	Total Assets
683.07M	710.44M	671.12M	577.84M	563.21M
	Total Debt
20.01M	18.14M	42.39M	10.32M	13.77M
	Net Debt
-6.27M	-70.61M	-15.72M	-19.19M	-8.84M
	Total Liabilities
194.68M	193.38M	166.45M	88.44M	70.94M
	Stockholders Equity
488.39M	517.07M	504.67M	489.40M	492.27M
Cash Flow		Free Cash Flow
79.78M	169.17M	48.61M	20.21M	57.98M
	Operating Cash Flow
154.84M	248.46M	152.23M	74.10M	70.77M
	Investing Cash Flow
-75.92M	-75.09M	-85.80M	-39.35M	13.26M
	Financing Cash Flow
-141.39M	-142.73M	-37.83M	-27.84M	-68.67M

Trican Well Service Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.62 is above the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.27, and above the 200-day MA of 4.58, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.50 is Negative, 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
TOT	80 Outperform	C$408.44M	6.60	11.38%	3.67%	11.02%	102.23%
CEU	76 Outperform	$1.51B	8.81	23.66%	2.38%	8.79%	31.76%
TCW	75 Outperform	C$861.63M	8.98	19.44%	4.22%	2.15%	-5.97%
EFX	71 Outperform	C$1.32B	12.97	7.03%	1.41%	1.22%	―
CFW	65 Neutral	C$290.31M	16.53	3.00%	―	-5.50%	-88.55%
STEP	64 Neutral	C$280.35M	151.92	-3.90%	―	-5.98%	-121.37%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%

Trican Well Service Corporate Events

Trican Well Service Announces 2025 Annual Meeting Results

Trican Well Service Ltd. announced the results of its 2025 annual and special meeting, where six directors were elected to serve until the next meeting. Shareholders approved the appointment of KPMG LLP as auditors and endorsed the company’s executive compensation approach and stock option plan, indicating strong shareholder support for the company’s governance and strategic direction.

The most recent analyst rating on (TSE:TCW) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Trican Well Service stock, see the TSE:TCW Stock Forecast page.

Trican Well Service Reports Q1 2025 Results Amid Competitive Pressures

Trican Well Service Ltd. reported a decrease in its first-quarter 2025 financial results compared to the previous year, primarily due to a competitive pricing environment and inflationary cost pressures. Despite the lower revenue and profits, the company maintained a strong balance sheet with positive working capital, allowing for continued shareholder returns through dividends and share buybacks. Trican’s ongoing commitment to its Normal Course Issuer Bid (NCIB) program and increased quarterly dividend reflects its strategic focus on returning capital to shareholders, while maintaining financial flexibility for future operations.

The most recent analyst rating on (TSE:TCW) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Trican Well Service stock, see the TSE:TCW Stock Forecast page.

Trican Well Service to Release Q1 2025 Results and Host Conference Call

Trican Well Service Ltd. announced that it will release its First Quarter 2025 financial results on May 12, 2025, after the market closes. The company will hold a conference call on May 13, 2025, to discuss these results, providing stakeholders with insights into its financial performance and operational strategies.