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Total Engy Serv Inc. (TSE:TOT)
TSX:TOT
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Total Energy Services
(TSX:TOT)
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Rating:78Outperform
Price Target:
C$17.50
▲(16.05% Upside)
Total Energy Services demonstrates strong financial performance and favorable valuation, supported by positive technical indicators. However, challenges highlighted in the earnings call, such as decreased EBITDA and margin pressures, slightly temper the overall outlook. The company's ability to navigate these challenges while capitalizing on growth opportunities will be crucial for future performance.
Positive Factors
Revenue Growth
The company's ability to achieve an 8% revenue increase year-over-year indicates strong demand for its services, supporting long-term growth potential.
Strong Financial Position
A strong financial position with substantial working capital and cash reserves enhances the company's ability to invest in growth opportunities and weather market fluctuations.
Australian Market Success
Significant growth in the Australian market demonstrates the company's ability to capitalize on international opportunities, diversifying revenue streams and reducing regional risk.
Negative Factors
Decreased EBITDA and Margin Pressures
Decreased EBITDA and margin pressures indicate challenges in maintaining profitability, which could affect cash flow and investment capacity over time.
Lower North American Activity
A significant decline in North American activity suggests potential market saturation or competitive pressures, which may hinder future growth in this key region.
Substantial Decline in U.S. Well Servicing Activity
The decline in U.S. well servicing activity could signal structural challenges in the market, affecting the company's ability to sustain its service offerings and revenue.
Total Energy Services (TOT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$560.76M
Dividend Yield2.57%
Average Volume (3M)53.61K
Price to Earnings (P/E)9.4
Beta (1Y)0.77
Revenue Growth15.58%
EPS Growth47.55%
CountryCA
Employees2,051
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.38
Shares Outstanding37,186,000
10 Day Avg. Volume54,344
30 Day Avg. Volume53,612
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.79
Price to Sales (P/S)0.50
P/FCF Ratio6.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.00Price Target Upside32.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 primarily through its services provided to oil and gas exploration and production companies. The key revenue streams include drilling services, completion services, production services, and manufacturing of specialized equipment. The company also earns money from rental services for equipment used in the energy sector. Significant partnerships with major oil and gas companies and contracts awarded for drilling and completion projects contribute to its earnings. The demand for its services is closely tied to the fluctuations in oil and gas prices, which can impact the overall revenue performance.
Total Energy Services Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong revenue growth in key segments, a solid financial position, and significant achievements in the Australian market. However, these were counterbalanced by decreased EBITDA, margin pressures, and challenges in North American operations, particularly in the U.S. well servicing sector.Q3-2025 Updates
Positive Updates
Increased Revenue in Key Segments
Consolidated third quarter revenue increased by 8% year-over-year. CPS segment revenue increased by $15.2 million, Well Servicing by $6.2 million, and RTS segment by $1.6 million.
Strong Financial Position
Total Energy had $115.5 million of positive working capital, including $57.1 million of cash, with a low bank debt to EBITDA ratio of 0.25.
Australian Market Success
A 32% increase in Australian operating days and a 162% increase in Australian operating income for Well Servicing. The active Australian drilling rig count reached a record of 13.
Record Fabrication Sales Backlog
The fabrication sales backlog increased by $76.9 million or 25% to $380.8 million, providing visibility into the second half of 2026.
Negative Updates
Decreased EBITDA and Margin Pressures
Third quarter EBITDA decreased by $7.6 million compared to 2024. The consolidated gross margin dropped by 209 basis points, with CPS segment EBITDA declining by 22%.
Lower North American Activity
A 33% year-over-year decline in North American operating days for the CDS segment, partially offset by higher activity in Australia.
Foreign Exchange Impact and Cost Inflation
A $1.8 million negative foreign exchange impact on CPS segment results, and increased costs due to tariff-related supply chain challenges.
Substantial Decline in U.S. Well Servicing Activity
Despite increases in Australia and Canada, U.S. activity levels saw a substantial decline, impacting overall segment performance.
Company Guidance
During the Total Energy Services Third Quarter 2025 Conference Call, substantial guidance was provided, highlighting a diversified business performance. Total Energy reported an 8% year-over-year increase in consolidated third-quarter revenue, primarily driven by specific segment growth with the CPS segment contributing $15.2 million, Well Servicing adding $6.2 million, and the RTS segment contributing $1.6 million. Despite this revenue growth, EBITDA decreased by $7.6 million compared to 2024 due to lower margins in the CPS and Well Servicing segments, a $1.8 million negative foreign exchange impact, and a $1.5 million increase in share-based compensation. Geographically, 48% of revenue was generated in Canada, 27% in the United States, and 25% in Australia. The company's gross margin was 22%, down 209 basis points from the previous year, attributed to increased revenue from lower-margin segments. Financially, Total Energy maintained a strong position with $115.5 million in positive working capital and $57.1 million in cash as of September 30, 2025. The company’s senior bank debt to EBITDA ratio was 0.25, with a bank interest coverage ratio of 36.47x. Looking ahead, Total Energy is focusing on capitalizing on strong North American demand for compression equipment and executing significant upgrades in Australia to meet ongoing market needs.Total Energy Services Financial Statement Overview
Summary
Total Energy Services demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet reflects a stable leverage position, while cash flow generation remains adequate despite recent declines in free cash flow growth. Overall, the company is well-positioned in the industry, though it should monitor cost pressures and cash flow trends.Income Statement
Total Energy Services shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.89%. The company maintains healthy gross and net profit margins at 14.58% and 6.74% respectively, indicating strong profitability. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.78
Positive
Balance Sheet
The company has a manageable debt-to-equity ratio of 0.21, reflecting a stable leverage position. Return on equity is solid at 11.34%, indicating effective use of equity to generate profits. The equity ratio stands at 61.19%, showcasing a strong equity base relative to total assets.75
Positive
Cash Flow
Operating cash flow remains robust, but free cash flow growth has declined by 10.28% in the TTM period, which could indicate increased capital expenditures or other cash outflows. The free cash flow to net income ratio of 0.48 suggests that the company is generating adequate cash relative to its net income.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.01B | 906.78M | 892.40M | 759.81M | 431.58M | 365.75M |
| Gross Profit | 142.57M | 135.09M | 133.34M | 91.19M | 25.42M | -14.33M |
| EBITDA | 179.36M | 171.84M | 168.96M | 131.32M | 85.97M | 81.05M |
| Net Income | 60.70M | 60.80M | 41.63M | 38.01M | -428.00K | -30.45M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 937.71M | 861.66M | 878.62M | 813.52M | 849.58M |
| Cash, Cash Equivalents and Short-Term Investments | 57.09M | 38.42M | 47.94M | 34.06M | 33.37M | 23.00M |
| Total Debt | 104.67M | 126.49M | 108.76M | 134.79M | 202.65M | 247.91M |
| Total Liabilities | 421.28M | 366.67M | 330.90M | 356.59M | 320.08M | 338.59M |
| Stockholders Equity | 593.83M | 570.80M | 530.24M | 521.47M | 492.88M | 510.36M |
Cash Flow | ||||||
| Free Cash Flow | 73.92M | 74.83M | 70.70M | 86.67M | 60.59M | 69.22M |
| Operating Cash Flow | 177.90M | 165.92M | 145.95M | 143.40M | 89.58M | 86.12M |
| Investing Cash Flow | -91.08M | -132.88M | -66.83M | -42.26M | -14.25M | -13.54M |
| Financing Cash Flow | -91.61M | -42.56M | -65.24M | -100.44M | -64.95M | -69.46M |
Total Energy Services Technical Analysis
Positive
15.08
Price Trends
14.39
Positive
13.80
Positive
11.88
Positive
Market Momentum
0.22
Positive
58.22
Neutral
58.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOT, the sentiment is Positive. The current price of 15.08 is above the 20-day moving average (MA) of 14.91, above the 50-day MA of 14.39, and above the 200-day MA of 11.88, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 58.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TOT.
Total Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$2.54B | 13.55 | 12.48% | 0.74% | 5.92% | ― | |
78 Outperform | C$1.24B | 10.22 | 18.06% | 3.57% | 9.24% | 6.35% | |
78 Outperform | C$560.76M | 9.35 | 10.51% | 2.57% | 15.58% | 47.55% | |
74 Outperform | C$931.61M | 15.18 | 12.74% | 4.34% | 4.60% | -44.63% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | C$410.44M | 18.00 | 3.20% | ― | -8.13% | -28.00% | |
56 Neutral | C$400.15M | -49.68 | -1.94% | ― | -9.19% | -119.27% |
* Energy Sector Average
TSE:TOT
Total Energy Services
15.08
4.20
38.60%
TSE:CFW
Calfrac Well Services
4.15
0.45
12.16%
TSE:EFX
Enerflex
20.82
6.93
49.89%
TSE:PSI
Pason Systems
11.94
-0.81
-6.35%
TSE:TCW
Trican Well Service
5.85
1.16
24.65%
TSE:STEP
STEP Energy Services
5.49
1.37
33.25%
Total Energy Services Corporate Events
Dividends
Total Energy Services Declares Quarterly Dividend
Positive
Dec 2, 2025
Total Energy Services Inc. has announced a quarterly dividend of $0.10 per common share for the quarter ending December 31, 2025, payable on January 15, 2026. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.
Business Operations and StrategyFinancial Disclosures
Total Energy Services Reports Q3 2025 Financial Results
Neutral
Nov 12, 2025
Total Energy Services Inc. reported its financial results for Q3 2025, showing an 8% increase in revenue compared to the same period in 2024, driven by improved performance in Australia and strong demand in North America for compression and process equipment. However, the company faced challenges such as a decline in North American drilling activity and increased expenses, including a $1.8 million negative foreign currency exchange impact and a $1.5 million rise in share-based compensation expenses.
Private Placements and FinancingBusiness Operations and Strategy
Total Energy Services Extends Credit Facilities to 2029
Positive
Oct 16, 2025
Total Energy Services Inc. has extended its $170 million revolving syndicated bank credit facilities to January 10, 2029, without altering the terms and conditions. This extension provides the company with continued financial flexibility, supporting its operations and strategic initiatives in the energy sector.
Business Operations and StrategyFinancial Disclosures
Total Energy Services Announces Q3 2025 Financial Results Conference Call
Neutral
Oct 6, 2025
Total Energy Services Inc. announced it will hold a conference call and webcast on November 13, 2025, following the release of its financial results for the third quarter ending September 30, 2025. This event, hosted by President and CEO Daniel Halyk, is open to shareholders and interested parties, and aims to provide insights into the company’s financial performance and strategic direction.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.