CALFRAC WELL SERVICES LTD (CFW.CA) Stock Fundamental Analysis
TSX:CFW - Toronto Stock Exchange - CA1295844056 - Common Stock - Currency: CAD
Taking everything into account, CFW scores 2 out of 10 in our fundamental rating. CFW was compared to 28 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of CFW have multiple concerns. CFW has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CFW was profitable.
In the past year CFW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CFW reported negative net income in multiple years.
Of the past 5 years CFW 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CFW (2.16%) is worse than 64.29% of its industry peers.
CFW has a Return On Equity of 4.35%. This is in the lower half of the industry: CFW underperforms 64.29% of its industry peers.
CFW has a worse Return On Invested Capital (5.86%) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 4.35% | ||
| ROIC | 5.86% |
ROA(3y)2.94%
ROA(5y)-7.39%
ROE(3y)2.85%
ROE(5y)-22.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CFW's Profit Margin of 1.74% is on the low side compared to the rest of the industry. CFW is outperformed by 64.29% of its industry peers.
With a Operating Margin value of 5.25%, CFW is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CFW has grown nicely.
With a Gross Margin value of 9.74%, CFW is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
CFW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 1.74% | ||
| GM | 9.74% |
OM growth 3YN/A
OM growth 5Y10.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y5.91%
2. Health
2.1 Basic Checks
CFW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CFW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CFW has more shares outstanding
Compared to 1 year ago, CFW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that CFW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.64, CFW is in line with its industry, outperforming 46.43% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that CFW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, CFW is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.64 |
ROIC/WACC0.73
WACC8.06%
2.3 Liquidity
A Current Ratio of 2.23 indicates that CFW has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.23, CFW is doing good in the industry, outperforming 67.86% of the companies in the same industry.
CFW has a Quick Ratio of 1.64. This is a normal value and indicates that CFW is financially healthy and should not expect problems in meeting its short term obligations.
CFW has a better Quick ratio (1.64) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for CFW have decreased strongly by -86.02% in the last year.
The Revenue for CFW has decreased by -14.97% in the past year. This is quite bad
The Revenue has been decreasing by -3.75% on average over the past years.
EPS 1Y (TTM)-86.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-106.67%
Revenue 1Y (TTM)-14.97%
Revenue growth 3Y38.26%
Revenue growth 5Y-3.75%
Sales Q2Q%-10.97%
3.2 Future
Based on estimates for the next years, CFW will show a very negative growth in Earnings Per Share. The EPS will decrease by -25.50% on average per year.
Based on estimates for the next years, CFW will show a decrease in Revenue. The Revenue will decrease by -2.66% on average per year.
EPS Next Y-93.31%
EPS Next 2Y-65.55%
EPS Next 3Y-38.65%
EPS Next 5Y-25.5%
Revenue Next Year-14.49%
Revenue Next 2Y-10.03%
Revenue Next 3Y-5.1%
Revenue Next 5Y-2.66%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.42, the valuation of CFW can be described as reasonable.
CFW's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.75. CFW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 13.57, 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 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than CFW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.3 |
4.3 Compensation for Growth
CFW's earnings are expected to decrease with -38.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-65.55%
EPS Next 3Y-38.65%
5. Dividend
5.1 Amount
CFW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CFW (3/3/2025, 7:00:00 PM)
3.77
-0.1 (-2.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners14.05%
Inst Owner ChangeN/A
Ins Owners13.76%
Ins Owner ChangeN/A
Market Cap323.81M
Analysts77.14
Price Target5.27 (39.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.76%
Min EPS beat(2)-140.62%
Max EPS beat(2)105.09%
EPS beat(4)2
Avg EPS beat(4)-3.99%
Min EPS beat(4)-140.62%
Max EPS beat(4)105.09%
EPS beat(8)5
Avg EPS beat(8)36.16%
EPS beat(12)6
Avg EPS beat(12)18.34%
EPS beat(16)8
Avg EPS beat(16)13.08%
Revenue beat(2)2
Avg Revenue beat(2)10.22%
Min Revenue beat(2)6.3%
Max Revenue beat(2)14.13%
Revenue beat(4)3
Avg Revenue beat(4)4.87%
Min Revenue beat(4)-5.16%
Max Revenue beat(4)14.13%
Revenue beat(8)6
Avg Revenue beat(8)3.44%
Revenue beat(12)8
Avg Revenue beat(12)2.28%
Revenue beat(16)10
Avg Revenue beat(16)2.13%
PT rev (1m)0%
PT rev (3m)3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75%
EPS NY rev (1m)-16.22%
EPS NY rev (3m)-27.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 13.57 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | 1.98 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 3.3 |
EPS(TTM)0.33
EY8.75%
EPS(NY)0.28
Fwd EY7.37%
FCF(TTM)-0.31
FCFYN/A
OCF(TTM)1.91
OCFY50.63%
SpS18.72
BVpS7.5
TBVpS7.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 4.35% | ||
| ROCE | 8.14% | ||
| ROIC | 5.86% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 5.96% | ||
| OM | 5.25% | ||
| PM (TTM) | 1.74% | ||
| GM | 9.74% | ||
| FCFM | N/A |
ROA(3y)2.94%
ROA(5y)-7.39%
ROE(3y)2.85%
ROE(5y)-22.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.24%
ROICexc growth 3YN/A
ROICexc growth 5Y18.24%
OM growth 3YN/A
OM growth 5Y10.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y5.91%
F-Score3
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 157.1% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 3.27 | ||
| Cash Conversion | 79.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.64 |
F-Score3
WACC8.06%
ROIC/WACC0.73
Cap/Depr(3y)86.48%
Cap/Depr(5y)68.55%
Cap/Sales(3y)6.9%
Cap/Sales(5y)7.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-86.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-106.67%
EPS Next Y-93.31%
EPS Next 2Y-65.55%
EPS Next 3Y-38.65%
EPS Next 5Y-25.5%
Revenue 1Y (TTM)-14.97%
Revenue growth 3Y38.26%
Revenue growth 5Y-3.75%
Sales Q2Q%-10.97%
Revenue Next Year-14.49%
Revenue Next 2Y-10.03%
Revenue Next 3Y-5.1%
Revenue Next 5Y-2.66%
EBIT growth 1Y-61.21%
EBIT growth 3YN/A
EBIT growth 5Y6.49%
EBIT Next Year-2.05%
EBIT Next 3Y7.5%
EBIT Next 5Y5.55%
FCF growth 1Y-35.86%
FCF growth 3YN/A
FCF growth 5Y32.66%
OCF growth 1Y286.67%
OCF growth 3Y125.69%
OCF growth 5Y8.8%