tiprankstipranks
Trending News
More News >
Western Energy Services (TSE:WRG)
:WRG

Western Energy Services (WRG) AI Stock Analysis

Compare
15 Followers

Top Page

TS

Western Energy Services

(TSX:WRG)

Rating:54Neutral
Price Target:
C$2.50
▲(8.70%Upside)
Western Energy Services shows resilience through stable cash flow and balance sheet strength, despite profitability challenges. Technical indicators are neutral, lacking clear momentum, while valuation is hampered by a negative P/E ratio. The stability in leadership from recent corporate events is a positive but has minimal impact on the overall score.

Western Energy Services (WRG) vs. iShares MSCI Canada ETF (EWC)

Western Energy Services Business Overview & Revenue Model

Company DescriptionWestern Energy Services (WRG) is a company that operates in the energy sector, providing a range of oilfield services primarily focused on drilling and well servicing. The company is known for its high-quality services that cater to the needs of exploration and production companies in the oil and gas industry. WRG's core services include contract drilling, well servicing, and oilfield equipment rentals, which are essential for the efficient extraction and management of oil and gas resources.
How the Company Makes MoneyWestern Energy Services makes money through multiple revenue streams primarily driven by its service offerings in the oil and gas industry. The company generates revenue by providing contract drilling services, which involve the use of their drilling rigs to assist exploration and production companies in extracting oil and gas. Another significant revenue stream comes from well servicing, where WRG offers maintenance and intervention services to ensure optimal well performance and longevity. Additionally, WRG earns income through the rental of specialized oilfield equipment to its clients. The company's earnings are influenced by factors such as the demand for oil and gas, global energy prices, and its ability to maintain strategic partnerships with major industry players.

Western Energy Services Financial Statement Overview

Summary
Western Energy Services shows resilience in cash flow and a stable balance sheet, but faces profitability challenges. The company has improved operational efficiency slightly, yet persistent net losses affect overall financial health.
Income Statement
55
Neutral
Western Energy Services shows mixed results with a modest revenue growth rate of 3.2% and improving gross profit margin at 68.6% in TTM. However, persistent net losses and a negative net profit margin of -2.8% indicate profitability challenges. The EBIT margin improved slightly to 0.5% from the previous year's 0.2%, signifying slight operational efficiency gains, yet the company remains unprofitable.
Balance Sheet
65
Positive
The company exhibits a stable balance sheet with a debt-to-equity ratio of 0.37, lower than industry norms, suggesting a conservative leverage approach. The equity ratio stands at 67.3%, indicating a solid equity base. However, the return on equity is negative due to net losses, reflecting challenges in delivering shareholder value.
Cash Flow
70
Positive
Cash flow analysis reveals positive trends, with operating cash flow consistently exceeding net income, evidenced by a strong operating cash flow to net income ratio of -6.48. Free cash flow declined by 33.6% in TTM but remains positive, ensuring liquidity. The free cash flow to net income ratio is -2.62, indicating some resilience in cash flow generation despite net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue230.11M223.08M233.45M200.34M131.68M103.68M
Gross Profit157.80M182.03M21.82M160.25M89.65M55.42M
EBITDA42.64M42.65M45.34M37.94M22.43M10.32M
Net Income-6.39M-7.16M-7.21M29.00M-35.81M-41.30M
Balance Sheet
Total Assets438.23M430.98M442.93M475.71M456.00M495.63M
Cash, Cash Equivalents and Short-Term Investments3.76M3.79M6.25M8.88M7.48M19.32M
Total Debt108.27M98.75M115.22M131.69M240.42M241.99M
Total Liabilities141.09M135.13M147.27M173.18M269.50M273.15M
Stockholders Equity294.88M293.62M293.37M300.59M184.51M220.80M
Cash Flow
Free Cash Flow16.71M25.19M28.73M-5.69M9.77M24.93M
Operating Cash Flow41.39M46.80M51.35M28.54M16.63M27.72M
Investing Cash Flow-23.42M-21.91M-25.45M-28.95M-5.69M-3.01M
Financing Cash Flow-17.63M-27.03M-28.85M1.44M-22.79M-9.41M

Western Energy Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.30
Price Trends
50DMA
2.14
Positive
100DMA
2.20
Positive
200DMA
2.44
Negative
Market Momentum
MACD
0.04
Negative
RSI
59.62
Neutral
STOCH
76.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRG, the sentiment is Positive. The current price of 2.3 is above the 20-day moving average (MA) of 2.15, above the 50-day MA of 2.14, and below the 200-day MA of 2.44, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WRG.

Western Energy Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSPHX
73
Outperform
C$371.86M6.5625.15%9.72%4.69%-34.62%
TSPHX
73
Outperform
C$371.86M6.5625.15%9.72%4.69%-34.62%
TSSDI
62
Neutral
C$27.99M16.671.91%-11.14%-84.33%
TSSDI
62
Neutral
C$27.99M16.671.91%-11.14%-84.33%
59
Neutral
C$96.85M5.1611.11%2.57%63.53%
59
Neutral
C$96.85M5.1611.11%2.57%63.53%
TSESI
55
Neutral
C$419.27M14.37-1.17%-2.85%-144.20%
TSESI
55
Neutral
C$419.27M14.37-1.17%-2.85%-144.20%
TSWRG
54
Neutral
C$76.65M-2.16%6.43%35.87%
52
Neutral
C$2.91B-1.09-3.26%6.12%5.32%-43.41%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WRG
Western Energy Services
2.30
-0.35
-13.21%
TSE:ESI
Ensign Energy Services
2.21
0.00
0.00%
TSE:ESI
Ensign Energy Services
2.21
0.00
0.00%
TSE:SDI
Stampede Drilling Inc
0.14
-0.09
-39.13%
TSE:SDI
Stampede Drilling Inc
0.14
-0.09
-39.13%
TSE:PHX
PHX Energy Services
8.18
-0.08
-0.97%
TSE:PHX
PHX Energy Services
8.18
-0.08
-0.97%
TSE:AKT.A
AKITA Drilling Ltd
2.37
1.06
80.92%
TSE:AKT.A
AKITA Drilling Ltd
2.37
1.06
80.92%

Western Energy Services Corporate Events

Executive/Board Changes
Western Energy Services Appoints Gavin Lane as CEO
Neutral
May 16, 2025

Western Energy Services Corp. has appointed Gavin Lane as the new President and CEO, following his interim role since January 31, 2025, after Alex MacAusland’s retirement. The decision comes after a comprehensive evaluation and external search, with the Board expressing confidence in Lane’s leadership to advance the company’s operations, safety processes, earning power, and culture. Chantel Calancia will continue as Interim CFO while a search for a permanent CFO is conducted.

Executive/Board ChangesShareholder Meetings
Western Energy Services Corp. Announces 2025 Director Election Results
Positive
Apr 24, 2025

Western Energy Services Corp. announced the results of its 2025 director elections, with six nominees elected to the board with overwhelming support. This election is significant for the company as it ensures continuity in leadership, which is crucial for maintaining its strong position in the energy services industry and potentially influencing its strategic direction.

Business Operations and StrategyFinancial Disclosures
Western Energy Services Reports Q1 2025 Financial Results with Revenue Growth
Neutral
Apr 22, 2025

Western Energy Services Corp. reported a revenue increase of 11% to $69 million in the first quarter of 2025, driven by higher contract drilling revenue in Canada, despite a decline in production services revenue. The company faced a decrease in Adjusted EBITDA by 8% due to one-time reorganization costs, although net income rose to $2.4 million, benefiting from reduced expenses in other areas. Operationally, the company saw a significant increase in drilling rig utilization in Canada, while the U.S. market remained stable with low activity. The extension of the maturity date for its Second Lien Facility indicates a strategic financial move, potentially impacting future liquidity and investment capabilities.

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.Date of analysis: Jun 27, 2025