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Western Energy Services (TSE:WRG)
:WRG
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Western Energy Services (WRG) AI Stock Analysis

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TSE:WRG

Western Energy Services

(TSX:WRG)

Rating:53Neutral
Price Target:
C$2.00
▼(-5.66%Downside)
Western Energy Services faces challenges with profitability and weak technical indicators, leading to a moderate overall stock score. The company's stable balance sheet and positive cash flow trends are strengths but are overshadowed by valuation concerns and bearish market trends.

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 operating in the energy sector, providing a range of services primarily focused on the oil and gas industry. The company specializes in drilling services, well servicing, and production services, offering comprehensive solutions that cater to the exploration, extraction, and maintenance needs of energy producers. WRG's core offerings are designed to support the efficient and effective operation of oil and gas fields, ensuring optimal productivity and safety standards.
How the Company Makes MoneyWestern Energy Services generates revenue through its extensive range of services offered to the oil and gas industry. The primary revenue streams include contract drilling services, which involve providing rigs and personnel for the drilling of oil and gas wells, and well servicing, which includes maintenance and workover services to enhance the productivity of existing wells. Additionally, WRG may earn income from ancillary services such as equipment rentals and specialized engineering support. The company typically enters into service contracts with energy producers, which dictate the terms and duration of the projects, providing a stable and predictable revenue base. Key partnerships with major oil and gas companies can also contribute significantly to WRG's earnings, leveraging long-term relationships and industry expertise to secure ongoing business.

Western Energy Services Financial Statement Overview

Summary
Western Energy Services shows resilience in cash flow and a stable balance sheet with a conservative debt position. However, it faces profitability challenges with persistent net losses, affecting overall financial health. Continued focus on profitability and cash flow stability is crucial.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue223.08M233.45M200.34M131.68M103.68M
Gross Profit182.03M21.82M160.25M89.65M55.42M
EBITDA42.65M45.34M37.94M22.43M10.32M
Net Income-7.16M-7.21M29.00M-35.81M-41.30M
Balance Sheet
Total Assets430.98M442.93M475.71M456.00M495.63M
Cash, Cash Equivalents and Short-Term Investments3.79M6.25M8.88M7.48M19.32M
Total Debt98.75M115.22M131.69M240.42M241.99M
Total Liabilities135.13M147.27M173.18M269.50M273.15M
Stockholders Equity293.62M293.37M300.59M184.51M220.80M
Cash Flow
Free Cash Flow25.19M28.73M-5.69M9.77M24.93M
Operating Cash Flow46.80M51.35M28.54M16.63M27.72M
Investing Cash Flow-21.91M-25.45M-28.95M-5.69M-3.01M
Financing Cash Flow-27.03M-28.85M1.44M-22.79M-9.41M

Western Energy Services Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.12
Price Trends
50DMA
2.16
Negative
100DMA
2.16
Negative
200DMA
2.40
Negative
Market Momentum
MACD
-0.01
Positive
RSI
46.19
Neutral
STOCH
25.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRG, the sentiment is Negative. The current price of 2.12 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 2.16, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
79
Outperform
C$375.50M6.6225.15%9.39%4.69%-34.62%
73
Outperform
C$30.99M18.451.91%-11.14%-84.33%
67
Neutral
C$415.58M14.37-1.17%-2.85%-144.20%
67
Neutral
C$87.14M4.6211.11%2.57%63.53%
53
Neutral
C$71.92M-1.99%5.00%22.76%
52
Neutral
C$2.98B-1.53-3.48%6.50%3.05%-49.39%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WRG
Western Energy Services
2.12
-0.78
-26.90%
TSE:ESI
Ensign Energy Services
2.35
-0.07
-2.89%
TSE:SDI
Stampede Drilling Inc
0.16
-0.06
-27.27%
TSE:PHX
PHX Energy Services
8.52
-0.85
-9.07%
TSE:AKT.A
AKITA Drilling Ltd
2.15
0.69
47.26%

Western Energy Services Corporate Events

Business Operations and StrategyFinancial Disclosures
Western Energy Services Reports Mixed Q2 2025 Results Amid Strategic Shifts
Neutral
Jul 22, 2025

Western Energy Services Corp. reported a decrease in second-quarter 2025 revenue to $40 million, down 7% from the previous year, primarily due to lower production services revenue despite increased contract drilling in Canada. The company achieved an 11% increase in Adjusted EBITDA to $5.9 million, aided by lower reorganization costs, but faced a net loss of $4.6 million. Operationally, Canadian drilling rig utilization improved to 25%, while service rig utilization dropped to 19% due to changes in customer programs. In the U.S., the company shifted focus to North Dakota, resulting in an 8% increase in revenue per operating day.

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.

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: Jul 23, 2025