TRICAN WELL SERVICE LTD (TCW.CA) Stock Fundamental Analysis
TSX:TCW - Toronto Stock Exchange - CA8959451037 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to TCW. TCW was compared to 26 industry peers in the Energy Equipment & Services industry. TCW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TCW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TCW had positive earnings in the past year.
TCW had a positive operating cash flow in the past year.
TCW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TCW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TCW (14.90%) is better than 92.31% of its industry peers.
TCW's Return On Equity of 20.08% is fine compared to the rest of the industry. TCW outperforms 76.92% of its industry peers.
TCW's Return On Invested Capital of 18.14% is amongst the best of the industry. TCW outperforms 96.15% of its industry peers.
TCW had an Average Return On Invested Capital over the past 3 years of 19.01%. This is significantly above the industry average of 10.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.9% | ||
| ROE | 20.08% | ||
| ROIC | 18.14% |
ROA(3y)14.96%
ROA(5y)1.52%
ROE(3y)20.51%
ROE(5y)3.81%
ROIC(3y)19.01%
ROIC(5y)N/A
1.3 Margins
TCW has a Profit Margin of 10.35%. This is amongst the best in the industry. TCW outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of TCW has grown nicely.
TCW's Operating Margin of 14.15% is amongst the best of the industry. TCW outperforms 88.46% of its industry peers.
TCW has a Gross Margin of 18.51%. This is in the lower half of the industry: TCW underperforms 65.38% of its industry peers.
In the last couple of years the Gross Margin of TCW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.15% | ||
| PM (TTM) | 10.35% | ||
| GM | 18.51% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y53.97%
PM growth 5YN/A
GM growth 3Y49.98%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TCW is creating value.
The number of shares outstanding for TCW has been reduced compared to 1 year ago.
Compared to 5 years ago, TCW has less shares outstanding
The debt/assets ratio for TCW is higher compared to a year ago.
2.2 Solvency
TCW has an Altman-Z score of 5.46. This indicates that TCW is financially healthy and has little risk of bankruptcy at the moment.
TCW has a better Altman-Z score (5.46) than 92.31% of its industry peers.
TCW has a debt to FCF ratio of 0.31. This is a very positive value and a sign of high solvency as it would only need 0.31 years to pay back of all of its debts.
TCW's Debt to FCF ratio of 0.31 is amongst the best of the industry. TCW outperforms 92.31% of its industry peers.
TCW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.06, TCW belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | 5.46 |
ROIC/WACC2.22
WACC8.16%
2.3 Liquidity
TCW has a Current Ratio of 2.57. This indicates that TCW is financially healthy and has no problem in meeting its short term obligations.
TCW has a better Current ratio (2.57) than 84.62% of its industry peers.
TCW has a Quick Ratio of 2.36. This indicates that TCW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.36, TCW belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The earnings per share for TCW have decreased by -5.07% in the last year.
The Earnings Per Share has been growing by 96.68% on average over the past years. This is a very strong growth
Looking at the last year, TCW shows a small growth in Revenue. The Revenue has grown by 2.16% in the last year.
The Revenue has been growing by 9.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.07%
EPS 3Y96.68%
EPS 5YN/A
EPS Q2Q%-10.53%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y20.36%
Revenue growth 5Y9.05%
Sales Q2Q%-4.73%
3.2 Future
The Earnings Per Share is expected to grow by 1.56% on average over the next years.
TCW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.37% yearly.
EPS Next Y2.4%
EPS Next 2Y8.58%
EPS Next 3Y8.31%
EPS Next 5Y1.56%
Revenue Next Year5.23%
Revenue Next 2Y4.33%
Revenue Next 3Y1.63%
Revenue Next 5Y-1.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 11.37, the valuation of TCW can be described as very reasonable.
TCW's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TCW to the average of the S&P500 Index (27.19), we can say TCW is valued rather cheaply.
TCW is valuated reasonably with a Price/Forward Earnings ratio of 9.24.
The rest of the industry has a similar Price/Forward Earnings ratio as TCW.
The average S&P500 Price/Forward Earnings ratio is at 35.33. TCW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCW.
The rest of the industry has a similar Price/Free Cash Flow ratio as TCW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 4.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TCW does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TCW may justify a higher PE ratio.
PEG (NY)4.73
PEG (5Y)N/A
EPS Next 2Y8.58%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, TCW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 10.80, TCW pays a better dividend. On top of this TCW pays more dividend than 84.62% of the companies listed in the same industry.
TCW's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of TCW decreases each year by -9.83%.
TCW has been paying a dividend for at least 10 years, so it has a reliable track record.
TCW has decreased its dividend recently.
Dividend Growth(5Y)-9.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TCW pays out 35.57% of its income as dividend. This is a sustainable payout ratio.
DP35.57%
EPS Next 2Y8.58%
EPS Next 3Y8.31%
TSX:TCW (7/14/2025, 7:00:00 PM)
5.8
+0.04 (+0.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners29.36%
Inst Owner ChangeN/A
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap1.04B
Analysts73.33
Price Target5.61 (-3.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend0.18
Dividend Growth(5Y)-9.83%
DP35.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.54%
Min EPS beat(2)3.58%
Max EPS beat(2)25.5%
EPS beat(4)3
Avg EPS beat(4)10.31%
Min EPS beat(4)-0.99%
Max EPS beat(4)25.5%
EPS beat(8)6
Avg EPS beat(8)32.5%
EPS beat(12)9
Avg EPS beat(12)36.73%
EPS beat(16)12
Avg EPS beat(16)126.48%
Revenue beat(2)1
Avg Revenue beat(2)5.66%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)14.57%
Revenue beat(4)1
Avg Revenue beat(4)2.22%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)14.57%
Revenue beat(8)2
Avg Revenue beat(8)0.28%
Revenue beat(12)4
Avg Revenue beat(12)1.65%
Revenue beat(16)7
Avg Revenue beat(16)2.53%
PT rev (1m)-1.68%
PT rev (3m)-6.38%
EPS NQ rev (1m)1.96%
EPS NQ rev (3m)15.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 9.24 | ||
| P/S | 1.07 | ||
| P/FCF | 8.97 | ||
| P/OCF | 5.51 | ||
| P/B | 2.08 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 4.98 |
EPS(TTM)0.51
EY8.79%
EPS(NY)0.63
Fwd EY10.83%
FCF(TTM)0.65
FCFY11.15%
OCF(TTM)1.05
OCFY18.14%
SpS5.42
BVpS2.79
TBVpS2.79
PEG (NY)4.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.9% | ||
| ROE | 20.08% | ||
| ROCE | 23.98% | ||
| ROIC | 18.14% | ||
| ROICexc | 18.28% | ||
| ROICexgc | 18.28% | ||
| OM | 14.15% | ||
| PM (TTM) | 10.35% | ||
| GM | 18.51% | ||
| FCFM | 11.93% |
ROA(3y)14.96%
ROA(5y)1.52%
ROE(3y)20.51%
ROE(5y)3.81%
ROIC(3y)19.01%
ROIC(5y)N/A
ROICexc(3y)19.58%
ROICexc(5y)N/A
ROICexgc(3y)19.61%
ROICexgc(5y)N/A
ROCE(3y)25.12%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y53.97%
PM growth 5YN/A
GM growth 3Y49.98%
GM growth 5YN/A
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 93.55% | ||
| Cap/Sales | 7.47% | ||
| Interest Coverage | 59.96 | ||
| Cash Conversion | 87.64% | ||
| Profit Quality | 115.24% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 5.46 |
F-Score5
WACC8.16%
ROIC/WACC2.22
Cap/Depr(3y)109.56%
Cap/Depr(5y)80.31%
Cap/Sales(3y)9.25%
Cap/Sales(5y)8.11%
Profit Quality(3y)91.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.07%
EPS 3Y96.68%
EPS 5YN/A
EPS Q2Q%-10.53%
EPS Next Y2.4%
EPS Next 2Y8.58%
EPS Next 3Y8.31%
EPS Next 5Y1.56%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y20.36%
Revenue growth 5Y9.05%
Sales Q2Q%-4.73%
Revenue Next Year5.23%
Revenue Next 2Y4.33%
Revenue Next 3Y1.63%
Revenue Next 5Y-1.37%
EBIT growth 1Y-11.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year51.17%
EBIT Next 3Y15.17%
EBIT Next 5Y6.12%
FCF growth 1Y63.29%
FCF growth 3Y58.07%
FCF growth 5YN/A
OCF growth 1Y8.72%
OCF growth 3Y27.85%
OCF growth 5Y40.19%