TRICAN WELL SERVICE LTD (TCW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCW - CA8959451037 - Common Stock
6.84 CAD
+0.06 (+0.88%)
TCW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 27 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 correct valuation and a medium growth rate. This makes TCW very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year TCW was profitable.
- In the past year TCW had a positive cash flow from operations.
- Of the past 5 years TCW 4 years were profitable.
- In the past 5 years TCW always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 10.34%, TCW is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- TCW's Return On Equity of 15.70% is amongst the best of the industry. TCW outperforms 81.48% of its industry peers.
- TCW's Return On Invested Capital of 12.10% is fine compared to the rest of the industry. TCW outperforms 77.78% of its industry peers.
- TCW had an Average Return On Invested Capital over the past 3 years of 19.01%. This is significantly below the industry average of 169.81%.
- The last Return On Invested Capital (12.10%) for TCW is well below the 3 year average (19.01%), which needs to be investigated, but indicates that TCW had better years and this may not be a problem.
| 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
- TCW has a better Profit Margin (10.28%) than 88.89% of its industry peers.
- TCW's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 14.14%, TCW belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
- TCW has a Gross Margin (19.40%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of TCW has grown nicely.
| 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
- Compared to 1 year ago, TCW has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.86 indicates that TCW is not in any danger for bankruptcy at the moment.
- TCW's Altman-Z score of 3.86 is amongst the best of the industry. TCW outperforms 85.19% of its industry peers.
- TCW has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
- TCW has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. TCW outperforms 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 | 3.86 |
ROIC/WACC1.51
WACC8.04%
2.3 Liquidity
- A Current Ratio of 2.87 indicates that TCW has no problem at all paying its short term obligations.
- The Current ratio of TCW (2.87) is better than 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.
- Looking at the Quick ratio, with a value of 2.65, TCW belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.04% over the past year.
- Measured over the past years, TCW shows a very strong growth in Earnings Per Share. The EPS has been growing by 96.68% on average per year.
- 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
- Based on estimates for the next years, TCW will show a small growth in Earnings Per Share. The EPS will grow by 6.45% on average per year.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- TCW is valuated correctly with a Price/Earnings ratio of 12.00.
- Based on the Price/Earnings ratio, TCW is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. TCW is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.87, the valuation of TCW can be described as reasonable.
- 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 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
- 62.96% of the companies in the same industry are cheaper than TCW, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TCW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
- TCW's 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)1.15
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%.
- TCW's Dividend Yield is rather good when compared to the industry average which is at 1.18. TCW pays more dividend than 92.59% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 12 and the Price/Book (PB) ratio is 2.1.
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%.