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Total Engy Serv Inc. (TSE:TOT)
TSX:TOT
Top Page
Total Energy Services
(TSX:TOT)
78Outperform
Total Energy Services (TOT) vs. S&P 500 (SPY)
Market Cap
C$348.17M
Dividend Yield4.04%
Average Volume (3M)69.13K
Price to Earnings (P/E)5.9
Beta (1Y)0.65
Revenue Growth2.65%
EPS Growth52.69%
CountryCA
Employees2,051
SectorEnergy
Sector Strength51
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.55
Shares Outstanding38,051,000
10 Day Avg. Volume34,034
30 Day Avg. Volume69,133
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)2.30
P/FCF Ratio6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Total Energy Services Business Overview & Revenue Model
Company DescriptionTotal Energy Services Inc. provides various products and services to the oil and natural gas industry primarily in Canada, the United States, and Australia. It operates through four segments: Contract Drilling Services, Rentals and Transportation Services, Compression and Process Services and Well Servicing. The Contract Drilling Services segment offers contract drilling services to oil and gas exploration and development companies. As of December 31, 2021, it operated a total fleet of 95 drilling rigs. The Rentals and Transportation Services segment provides drilling, completion and production rental equipment, and oilfield transportation services in western Canada and in the United States. This segment owned and operated a fleet of 79 heavy trucks. The Compression and Process Services segment offers gas compression services; and designs and packages skid style compressors and proprietary trailer-mounted compressors under the NOMAD brand in Canada and the United States, the European Union, Australia, and Mexico. It had 53,800 horsepower of compression in its rental fleet. The Well Servicing segment offers well services. This segment operated a total fleet of 83 well servicing rigs across Western Canada, mid-western United States, and Australia. The company was founded in 1996 and is headquartered in Calgary, Canada.
How the Company Makes MoneyTotal Energy Services generates revenue through multiple streams, primarily within the energy sector. The company earns income from its contract drilling services by providing drilling rigs and associated services to exploration and production companies. Additionally, it generates revenue from its rental and transportation services segment, which offers equipment rental and transportation solutions to the energy industry. Another significant revenue stream comes from its compression and process services, where the company provides natural gas compression equipment and process solutions to oil and gas producers. These diverse revenue streams are bolstered by strategic partnerships and long-term contracts with clients, which help stabilize earnings and foster growth.
Total Energy Services Financial Statement Overview
Summary
Total Energy Services demonstrates strong financial performance with consistent revenue growth, improved profit margins, and effective leverage management. Free cash flow is robust, supporting operational efficiency and future growth.Income Statement
Total Energy Services has demonstrated consistent revenue growth, moving from $365.75 million in 2020 to $906.78 million in 2024, showing strong recovery and expansion. Gross profit margin improved significantly over the years, indicating efficient cost management. The net profit margin increased from negative values in 2020 to 6.7% in 2024, reflecting improved profitability. The EBIT and EBITDA margins have also strengthened, showcasing operational efficiency.85
Very Positive
Balance Sheet
The company has improved its leverage position with a declining debt-to-equity ratio from 0.58 in 2019 to 0.22 in 2024. Stockholders' equity increased, enhancing the equity ratio to 60.9% in 2024. The return on equity has improved from negative values to 10.6% in 2024, signaling better utilization of equity. However, the total assets have fluctuated, requiring attention to asset management.78
Positive
Cash Flow
Free cash flow remained positive and grew steadily, from $23.74 million in 2019 to $74.83 million in 2024, indicating strong cash generation capability. The operating cash flow to net income ratio is healthy, showing efficient conversion of income into cash. The free cash flow to net income ratio is robust, reflecting solid cash flow management despite capital expenditures.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 906.78M | 892.40M | 759.81M | 431.58M | 365.75M | Gross Profit |
| 135.09M | 133.34M | 91.19M | 25.42M | -14.33M | EBIT |
| 79.84M | 84.62M | 49.34M | -1.46M | -36.54M | EBITDA |
| 171.84M | 168.96M | 131.32M | 85.97M | 81.05M | Net Income Common Stockholders |
| 60.80M | 41.63M | 38.01M | -428.00K | -30.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 38.42M | 47.94M | 34.06M | 33.37M | 23.00M | Total Assets |
| 937.71M | 861.66M | 878.62M | 813.52M | 849.58M | Total Debt |
| 126.49M | 108.76M | 134.79M | 202.65M | 247.91M | Net Debt |
| 88.07M | 60.83M | 100.73M | 169.28M | 224.91M | Total Liabilities |
| 366.67M | 330.90M | 356.59M | 320.08M | 338.59M | Stockholders Equity |
| 570.80M | 530.24M | 521.47M | 492.88M | 510.36M |
| Cash Flow | Free Cash Flow | |||
| 74.83M | 70.70M | 86.67M | 60.59M | 69.22M | Operating Cash Flow |
| 165.92M | 145.95M | 143.40M | 89.58M | 86.12M | Investing Cash Flow |
| -132.88M | -66.83M | -42.26M | -14.25M | -13.54M | Financing Cash Flow |
| -42.56M | -65.24M | -100.44M | -64.95M | -69.46M |
Total Energy Services Technical Analysis
Negative
9.15
Price Trends
9.59
Negative
10.55
Negative
10.05
Negative
Market Momentum
-0.13
Negative
46.69
Neutral
51.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOT, the sentiment is Negative. The current price of 9.15 is below the 20-day moving average (MA) of 9.23, below the 50-day MA of 9.59, and below the 200-day MA of 10.05, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 51.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TOT.
Total Energy Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Performance Comparison
TSE:TOT
Total Energy Services
9.15
-0.55
-5.67%
PDS
Precision Drilling
43.00
-30.38
-41.40%
CESDF
CES Energy Solutions
4.46
0.32
7.73%
TSE:ESI
Ensign Energy Services
1.98
-0.68
-25.56%
TOLWF
Trican Well Service
2.97
-0.05
-1.66%
TSE:STEP
STEP Energy Services
3.91
-0.17
-4.17%
Total Energy Services Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 0.77% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a record year for Total Energy with strong cash flow and strategic investments in Australia. However, challenges in the U.S. market and operational issues in Australia contributed to decreased margins and revenue in certain segments. The company's strong financial position and dividend increase indicate confidence in future performance, despite current challenges.Highlights
Record Year for Total Energy
2024 was a record year for Total Energy, with significant free cash flow generation used to reduce bank debt by $25.5 million and return $7.1 million to shareholders through dividends and share buybacks.
Strong Financial Position
As of December 31, 2024, Total Energy had $78.7 million of positive working capital, including $38.4 million of cash, and a senior bank debt-to-EBITDA ratio of 0.25 times.
Australian Market Expansion
Fourth quarter operating days in Australia increased by 110% following the acquisition of Saxon, leading to a 173% year-over-year revenue increase in the region.
Dividend Increase
The Board of Directors approved an 11% increase to the dividend, reflecting confidence in future cash flows and financial stability.
Lowlights
Decrease in U.S. Activity
Fourth quarter consolidated EBITDA was $4.7 million lower than in 2023, primarily due to lower U.S. activity levels, resulting in a 60% decrease in CPS revenue and a realization of an operating loss.
Weather and Operational Challenges in Australia
Extended wet weather conditions led to delays and increased costs in Australia, causing operating losses despite higher revenue.
Gross Margin Decline
Fourth quarter gross margin decreased to 23% from 27% in 2023, due to lower operating margins in the CPS and Well Servicing segments.
Foreign Exchange Impact
A negative impact of $4.1 million on Canadian CPS segment operating income arose from foreign exchange translation differences.
Company Guidance
In the fourth quarter of 2024, Total Energy Services reported a 15% increase in consolidated revenue compared to Q4 2023, driven by the acquisition of Saxon, despite lower U.S. drilling activity. EBITDA was $4.7 million lower than the previous year due to decreased U.S. activity and foreign exchange impacts. Revenue distribution was 48% from Canada, 33% from the U.S., and 19% from Australia. By segment, CPS contributed 47% to the consolidated revenue, followed by Contract Drilling Services at 34%. The gross margin decreased to 23% from 27% in 2023, primarily due to lower margins in the CPS and Well Servicing segments. Total Energy's financial position remained strong, with $78.7 million in working capital and a senior debt-to-EBITDA ratio of 0.25 times. The company plans a capital budget of $61.9 million for 2025, focusing on equipment upgrades and maintenance. Despite market uncertainties, strong demand in the CPS segment and favorable conditions in the Australian LNG market provide a positive outlook for the company.Total Energy Services Corporate Events
Financial Disclosures
Total Energy Services to Host Q1 2025 Financial Results Conference Call
Neutral
Apr 4, 2025
Total Energy Services Inc. announced a conference call and webcast scheduled for May 9, 2025, following the release of its financial results for the first quarter of 2025. This event, hosted by President and CEO Daniel Halyk, is open to shareholders and interested parties, providing an opportunity to gain insights into the company’s financial performance and strategic direction.
Dividends
Total Energy Services Declares Quarterly Dividend
Positive
Mar 11, 2025
Total Energy Services Inc. has announced a quarterly dividend of $0.10 per common share for the quarter ending March 31, 2025, payable on April 15, 2025. This announcement highlights the company’s commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.
Financial Disclosures
Total Energy Services to Host Q4 2024 Financial Results Conference Call
Neutral
Feb 3, 2025
Total Energy Services Inc. has announced a conference call and webcast to discuss its financial results for the fourth quarter of 2024, scheduled for March 7, 2025. This call, hosted by President and CEO Daniel Halyk, offers stakeholders an opportunity to gain insights into the company’s performance and future prospects, which could influence its market positioning and investor relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.