CALFRAC WELL SERVICES LTD (CFW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CFW - CA1295844056 - Common Stock
5.01 CAD
-0.09 (-1.76%)
Taking everything into account, CFW scores 3 out of 10 in our fundamental rating. CFW was compared to 27 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of CFW have multiple concerns. CFW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CFW was profitable.
- 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 has a Return On Assets of 1.65%. This is in the lower half of the industry: CFW underperforms 70.37% of its industry peers.
- The Return On Equity of CFW (3.03%) is worse than 70.37% of its industry peers.
- The Return On Invested Capital of CFW (7.43%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years 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
- CFW has a worse Profit Margin (1.37%) than 70.37% of its industry peers.
- 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.
- The Gross Margin of CFW (8.79%) is worse than 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CFW is still creating some value.
- CFW has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CFW has more shares outstanding
- CFW has a worse debt/assets ratio than last year.
2.2 Solvency
- CFW has an Altman-Z score of 1.43. This is a bad value and indicates that CFW is not financially healthy and even has some risk of bankruptcy.
- CFW has a Altman-Z score (1.43) which is in line with its industry peers.
- 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's Debt to FCF ratio of 5.57 is in line compared to the rest of the industry. CFW outperforms 55.56% of its industry peers.
- CFW has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.02, CFW belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.86
WACC8.62%
2.3 Liquidity
- CFW has a Current Ratio of 0.93. This is a bad value and indicates that CFW is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.93, CFW is doing worse than 77.78% of the companies in the same industry.
- A Quick Ratio of 0.72 indicates that CFW may have some problems paying its short term obligations.
- CFW's Quick ratio of 0.72 is on the low side compared to the rest of the industry. CFW is outperformed by 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for CFW have decreased strongly by -24.24% in the last year.
- Looking at the last year, CFW shows a decrease in Revenue. The Revenue has decreased by -8.13% in the last year.
- The Revenue has been decreasing by -0.67% on average over the past years.
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
- Based on estimates for the next years, CFW will show a very strong growth in Earnings Per Share. The EPS will grow by 71.05% on average per year.
- 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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.04, which indicates a rather expensive current valuation of CFW.
- CFW's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of CFW to the average of the S&P500 Index (27.25), we can say CFW is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.14, the valuation of CFW can be described as correct.
- CFW's Price/Forward Earnings ratio is in line with the industry average.
- CFW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CFW indicates a rather cheap valuation: CFW is cheaper than 81.48% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CFW is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 3.68 |
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
- No dividends for CFW!.
| 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 20.04 and the Price/Book (PB) ratio is 0.64.
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%.