Trican Well Service (TCW) AI Stock Analysis

• Market Cap: C$960.31M
• Dividend Yield: 3.72%
• Average Volume (3M): 492.03K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.59
• Revenue Growth: 2.15%
• EPS Growth: -5.97%
• Country: CA
• Employees: 1,200
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.17
• Shares Outstanding: 178,496,800
• 10 Day Avg. Volume: 838,145
• 30 Day Avg. Volume: 492,034
• 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$6.17
• Price Target Upside: 14.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: C$5.00 ▼(-7.06%Downside)

Trican Well Service's overall score is boosted by its solid financial performance and strategic corporate events, such as acquisitions and dividend increases. However, technical analysis shows only moderate momentum, and the earnings call highlighted some challenges such as pricing pressures and decreased EBITDA.

Positive Factors

Acquisition

The acquisition of Iron Horse Energy Services is expected to generate significant earnings per share and cash flow per share accretion due to Iron Horse's low overhead and minimal capital expenditure requirements.

Financial Performance

The company's strong shareholder returns program, which includes significant share repurchases and annual dividend increases, is expected to continue with potential additional dividend growth.

Negative Factors

Valuation

The lack of growth into 2025 combined with Trican Well's relatively expensive valuation leads to 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
EBITDA	225.54M	238.76M	190.68M	101.76M	-144.44M
Net Income	109.48M	121.01M	79.22M	12.06M	-233.32M
Balance Sheet
Total Assets	683.07M	710.44M	671.12M	577.84M	563.21M
Cash, Cash Equivalents and Short-Term Investments	26.28M	88.75M	58.11M	29.51M	22.61M
Total Debt	20.01M	18.14M	42.39M	10.32M	13.77M
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: 5.38
• 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:TCW, the sentiment is Positive. The current price of 5.38 is above the 20-day moving average (MA) of 4.62, above the 50-day MA of 4.38, and above the 200-day MA of 4.54, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 80.19 is Negative, neither overbought nor oversold. The STOCH value of 81.59 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$415.56M	6.66	11.38%	3.61%	11.02%	102.23%
CEU	76 Outperform	$1.54B	8.86	23.66%	2.44%	8.79%	31.76%
TCW	75 Outperform	C$960.31M	10.38	19.44%	3.72%	2.15%	-5.97%
EFX	71 Outperform	C$1.36B	13.25	7.03%	1.36%	1.22%	―
CFW	69 Neutral	C$307.48M	16.91	3.00%	―	-5.50%	-88.55%
STEP	66 Neutral	C$321.02M	151.92	-3.90%	―	-5.98%	-121.37%
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%

Trican Well Service Corporate Events

Trican Well Service Acquires Iron Horse Energy Services and Increases Dividend

Trican Well Service Ltd. announced its acquisition of Iron Horse Energy Services, a private fracturing and coiled tubing services provider, for approximately $77.35 million in cash and 33.76 million common shares. This strategic acquisition is expected to enhance Trican’s operational expertise and expand its customer base in Alberta and Saskatchewan, providing significant accretion to EBITDA, free cash flow, and earnings for Trican shareholders. Additionally, Trican announced a 10% increase in its base dividend, reflecting the anticipated positive impact of the acquisition on its financial performance.

The most recent analyst rating on (TSE:TCW) stock is a Buy with a C$6.00 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 Announce Q2 2025 Results and Host Conference Call

Trican Well Service Ltd. announced it will release its Second Quarter 2025 financial results on July 29, 2025, followed by a conference call on July 30, 2025, to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:TCW) stock is a Buy with a C$6.00 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 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.