CALFRAC WELL SERVICES LTD (CFW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CFW - CA1295844056 - Common Stock
5.03 CAD
+0.01 (+0.2%)
We assign a fundamental rating of 3 out of 10 to CFW. CFW was compared to 27 industry peers in the Energy Equipment & Services industry. CFW may be in some trouble as it scores bad on both profitability and health. CFW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- CFW had positive earnings in the past year.
- CFW had a positive operating cash flow in the past year.
- In multiple years CFW reported negative net income over the last 5 years.
- Of the past 5 years CFW 4 years had a positive operating cash flow.
1.2 Ratios
- CFW's Return On Assets of 1.65% is on the low side compared to the rest of the industry. CFW is outperformed by 70.37% of its industry peers.
- CFW's Return On Equity of 3.03% is on the low side compared to the rest of the industry. CFW is outperformed by 70.37% of its industry peers.
- CFW's Return On Invested Capital of 7.43% is in line compared to the rest of the industry. CFW outperforms 55.56% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CFW is significantly below the industry average of 169.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 3.03% | ||
| ROIC | 7.43% |
ROA(3y)6.32%
ROA(5y)-5.17%
ROE(3y)11.77%
ROE(5y)-13.78%
ROIC(3y)9.5%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 1.37%, CFW is doing worse than 70.37% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 4.81%, CFW is doing worse than 74.07% of the companies in the same industry.
- CFW's Gross Margin of 8.79% is on the low side compared to the rest of the industry. CFW is outperformed by 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.81% | ||
| PM (TTM) | 1.37% | ||
| GM | 8.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- CFW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CFW has about the same amount of shares outstanding.
- Compared to 5 years ago, CFW has more shares outstanding
- Compared to 1 year ago, CFW has a worse debt to assets ratio.
2.2 Solvency
- CFW has an Altman-Z score of 1.42. This is a bad value and indicates that CFW is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.42, CFW perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- The Debt to FCF ratio of CFW is 5.57, which is a neutral value as it means it would take CFW, 5.57 years of fcf income to pay off all of its debts.
- CFW has a Debt to FCF ratio (5.57) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.02 indicates that CFW is not too dependend on debt financing.
- CFW has a better Debt to Equity ratio (0.02) than 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.86
WACC8.65%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that CFW may have some problems paying its short term obligations.
- With a Current ratio value of 0.93, CFW is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
- A Quick Ratio of 0.72 indicates that CFW may have some problems paying its short term obligations.
- The Quick ratio of CFW (0.72) is worse than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- CFW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.24%.
- CFW shows a decrease in Revenue. In the last year, the revenue decreased by -8.13%.
- CFW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.67% yearly.
EPS 1Y (TTM)-24.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.49%
Revenue 1Y (TTM)-8.13%
Revenue growth 3Y16.07%
Revenue growth 5Y-0.67%
Sales Q2Q%-24.81%
3.2 Future
- The Earnings Per Share is expected to grow by 71.05% on average over the next years. This is a very strong growth
- Based on estimates for the next years, CFW will show a decrease in Revenue. The Revenue will decrease by -2.96% on average per year.
EPS Next Y117.84%
EPS Next 2Y69.71%
EPS Next 3Y71.05%
EPS Next 5YN/A
Revenue Next Year-11.71%
Revenue Next 2Y-6.58%
Revenue Next 3Y-2.96%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CFW is valuated rather expensively with a Price/Earnings ratio of 20.12.
- The rest of the industry has a similar Price/Earnings ratio as CFW.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CFW is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 16.20, the valuation of CFW can be described as correct.
- CFW's Price/Forward Earnings is on the same level as the industry average.
- CFW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
- CFW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CFW is cheaper than 85.19% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CFW is valued a bit cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 3.62 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CFW's earnings are expected to grow with 71.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y69.71%
EPS Next 3Y71.05%
5. Dividend
5.1 Amount
- CFW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CALFRAC WELL SERVICES LTD / CFW.CA FAQ
What is the ChartMill fundamental rating of CALFRAC WELL SERVICES LTD (CFW.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to CFW.CA.
Can you provide the valuation status for CALFRAC WELL SERVICES LTD?
ChartMill assigns a valuation rating of 6 / 10 to CALFRAC WELL SERVICES LTD (CFW.CA). This can be considered as Fairly Valued.
What is the profitability of CFW stock?
CALFRAC WELL SERVICES LTD (CFW.CA) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for CFW stock?
The Price/Earnings (PE) ratio for CALFRAC WELL SERVICES LTD (CFW.CA) is 20.12 and the Price/Book (PB) ratio is 0.65.
Can you provide the dividend sustainability for CFW stock?
The dividend rating of CALFRAC WELL SERVICES LTD (CFW.CA) is 0 / 10 and the dividend payout ratio is 0%.