TRICAN WELL SERVICE LTD (TCW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCW - CA8959451037 - Common Stock
6.73 CAD
0 (0%)
Taking everything into account, TCW scores 7 out of 10 in our fundamental rating. TCW was compared to 27 industry peers in the Energy Equipment & Services industry. Both the health and profitability get an excellent rating, making TCW a very profitable company, without any liquidiy or solvency issues. TCW has a decent growth rate and is not valued too expensively. These ratings would make TCW suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year TCW was profitable.
- TCW had a positive operating cash flow in the past year.
- Of the past 5 years TCW 4 years were profitable.
- TCW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.34%, TCW is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- The Return On Equity of TCW (15.70%) is better than 81.48% of its industry peers.
- With a decent Return On Invested Capital value of 12.10%, TCW is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TCW is significantly below the industry average of 169.81%.
- The 3 year average ROIC (19.01%) for TCW is well above the current ROIC(12.10%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | 15.7% | ||
| ROIC | 12.1% |
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
- Looking at the Profit Margin, with a value of 10.28%, TCW belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- TCW's Profit Margin has improved in the last couple of years.
- TCW has a Operating Margin of 14.14%. This is amongst the best in the industry. TCW outperforms 81.48% of its industry peers.
- The Gross Margin of TCW (19.40%) is comparable to the rest of the industry.
- TCW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 10.28% | ||
| GM | 19.4% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TCW is creating value.
- TCW has less shares outstanding than it did 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 3.82. This indicates that TCW is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.82, TCW belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
- The Debt to FCF ratio of TCW is 1.74, which is an excellent value as it means it would take TCW, only 1.74 years of fcf income to pay off all of its debts.
- TCW has a better Debt to FCF ratio (1.74) than 85.19% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that TCW is not too dependend on debt financing.
- TCW's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. TCW outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.51
WACC8.04%
2.3 Liquidity
- TCW has a Current Ratio of 2.87. This indicates that TCW is financially healthy and has no problem in meeting its short term obligations.
- TCW's Current ratio of 2.87 is amongst the best of the industry. TCW outperforms 88.89% of its industry peers.
- A Quick Ratio of 2.65 indicates that TCW has no problem at all paying its short term obligations.
- The Quick ratio of TCW (2.65) is better than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
- TCW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.04%, which is quite good.
- TCW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 96.68% yearly.
- Looking at the last year, TCW shows a quite strong growth in Revenue. The Revenue has grown by 9.24% in the last year.
- TCW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.05% yearly.
EPS 1Y (TTM)8.04%
EPS 3Y96.68%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)9.24%
Revenue growth 3Y20.36%
Revenue growth 5Y9.05%
Sales Q2Q%35.65%
3.2 Future
- TCW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.45% yearly.
- The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y10.46%
EPS Next 2Y14.06%
EPS Next 3Y9.9%
EPS Next 5Y6.45%
Revenue Next Year17.72%
Revenue Next 2Y17.73%
Revenue Next 3Y12.2%
Revenue Next 5Y4.23%
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
- The Price/Earnings ratio is 11.81, which indicates a very decent valuation of TCW.
- TCW's Price/Earnings ratio is a bit cheaper when compared to the industry. TCW is cheaper than 70.37% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. TCW is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 9.71, which indicates a very decent valuation of TCW.
- TCW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCW is cheaper than 70.37% of the companies in the same industry.
- TCW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
- TCW's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TCW is more expensive than 62.96% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TCW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y14.06%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
- TCW has a Yearly Dividend Yield of 3.27%.
- Compared to an average industry Dividend Yield of 1.18, TCW pays a better dividend. On top of this TCW pays more dividend than 92.59% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TCW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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 35.68% of its income as dividend. This is a sustainable payout ratio.
DP35.68%
EPS Next 2Y14.06%
EPS Next 3Y9.9%
TRICAN WELL SERVICE LTD / TCW.CA FAQ
Can you provide the ChartMill fundamental rating for TRICAN WELL SERVICE LTD?
ChartMill assigns a fundamental rating of 7 / 10 to TCW.CA.
What is the valuation status for TCW stock?
ChartMill assigns a valuation rating of 5 / 10 to TRICAN WELL SERVICE LTD (TCW.CA). This can be considered as Fairly Valued.
How profitable is TRICAN WELL SERVICE LTD (TCW.CA) stock?
TRICAN WELL SERVICE LTD (TCW.CA) has a profitability rating of 7 / 10.
What is the valuation of TRICAN WELL SERVICE LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRICAN WELL SERVICE LTD (TCW.CA) is 11.81 and the Price/Book (PB) ratio is 2.07.
Can you provide the dividend sustainability for TCW stock?
The dividend rating of TRICAN WELL SERVICE LTD (TCW.CA) is 5 / 10 and the dividend payout ratio is 35.68%.