WESTERN ENERGY SERVICES CORP (WRG.CA) Stock Fundamental Analysis
TSX:WRG - Toronto Stock Exchange - CA9581596009 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to WRG. WRG was compared to 28 industry peers in the Energy Equipment & Services industry. The financial health of WRG is average, but there are quite some concerns on its profitability. WRG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
WRG had negative earnings in the past year.
WRG had a positive operating cash flow in the past year.
WRG had negative earnings in 4 of the past 5 years.
In the past 5 years WRG always reported a positive cash flow from operatings.
1.2 Ratios
WRG's Return On Assets of -1.72% is on the low side compared to the rest of the industry. WRG is outperformed by 78.57% of its industry peers.
WRG has a worse Return On Equity (-2.54%) than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.41%, WRG is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.72% | ||
| ROE | -2.54% | ||
| ROIC | 0.41% |
ROA(3y)-1.15%
ROA(5y)-5.3%
ROE(3y)-4.13%
ROE(5y)-12.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WRG has a Operating Margin of 1.05%. This is in the lower half of the industry: WRG underperforms 78.57% of its industry peers.
The Gross Margin of WRG (29.35%) is better than 71.43% of its industry peers.
In the last couple of years the Gross Margin of WRG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 29.35% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.64%
GM growth 5YN/A
2. Health
2.1 Basic Checks
WRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WRG has about the same amount of shares outstanding.
Compared to 5 years ago, WRG has less shares outstanding
Compared to 1 year ago, WRG has an improved debt to assets ratio.
2.2 Solvency
WRG has an Altman-Z score of 0.01. This is a bad value and indicates that WRG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.01, WRG is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
WRG has a debt to FCF ratio of 5.44. This is a neutral value as WRG would need 5.44 years to pay back of all of its debts.
WRG has a Debt to FCF ratio (5.44) which is in line with its industry peers.
A Debt/Equity ratio of 0.35 indicates that WRG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, WRG perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 0.01 |
ROIC/WACC0.05
WACC8.98%
2.3 Liquidity
WRG has a Current Ratio of 1.59. This is a normal value and indicates that WRG is financially healthy and should not expect problems in meeting its short term obligations.
WRG's Current ratio of 1.59 is in line compared to the rest of the industry. WRG outperforms 53.57% of its industry peers.
WRG has a Quick Ratio of 1.47. This is a normal value and indicates that WRG is financially healthy and should not expect problems in meeting its short term obligations.
WRG has a Quick ratio of 1.47. This is in the better half of the industry: WRG outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for WRG have decreased strongly by -117.32% in the last year.
WRG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.53%.
WRG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.25% yearly.
EPS 1Y (TTM)-117.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4.4%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y31.06%
Revenue growth 5Y-0.25%
Sales Q2Q%8.82%
3.2 Future
The Earnings Per Share is expected to grow by 25.84% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y-410.05%
EPS Next 2Y48.39%
EPS Next 3Y34.89%
EPS Next 5Y25.84%
Revenue Next Year-2.59%
Revenue Next 2Y2.97%
Revenue Next 3Y2.79%
Revenue Next 5Y2.79%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for WRG. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 57.92 indicates a quite expensive valuation of WRG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WRG indicates a slightly more expensive valuation: WRG is more expensive than 78.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. WRG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 57.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRG is valued a bit cheaper than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WRG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.05 | ||
| EV/EBITDA | 4.11 |
4.3 Compensation for Growth
WRG's earnings are expected to grow with 34.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.39%
EPS Next 3Y34.89%
5. Dividend
5.1 Amount
WRG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:WRG (3/3/2025, 7:00:00 PM)
2.34
-0.01 (-0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners49.68%
Inst Owner ChangeN/A
Ins Owners6.15%
Ins Owner ChangeN/A
Market Cap79.19M
Analysts47.5
Price Target3.19 (36.32%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.24%
Min Revenue beat(2)1.45%
Max Revenue beat(2)5.03%
Revenue beat(4)3
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-11.06%
Max Revenue beat(4)5.03%
Revenue beat(8)5
Avg Revenue beat(8)-3.51%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-380.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)4.63%
Revenue NY rev (3m)4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 57.92 | ||
| P/S | 0.36 | ||
| P/FCF | 4.05 | ||
| P/OCF | 2.04 | ||
| P/B | 0.27 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)-0.2
EYN/A
EPS(NY)0.04
Fwd EY1.73%
FCF(TTM)0.58
FCFY24.71%
OCF(TTM)1.14
OCFY48.92%
SpS6.49
BVpS8.58
TBVpS8.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.72% | ||
| ROE | -2.54% | ||
| ROCE | 0.58% | ||
| ROIC | 0.41% | ||
| ROICexc | 0.42% | ||
| ROICexgc | 0.42% | ||
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 29.35% | ||
| FCFM | 8.91% |
ROA(3y)-1.15%
ROA(5y)-5.3%
ROE(3y)-4.13%
ROE(5y)-12.33%
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.64%
GM growth 5YN/A
F-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5.44 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 45.63% | ||
| Cap/Sales | 8.73% | ||
| Interest Coverage | 0.23 | ||
| Cash Conversion | 87.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 0.01 |
F-Score6
WACC8.98%
ROIC/WACC0.05
Cap/Depr(3y)51.79%
Cap/Depr(5y)34.76%
Cap/Sales(3y)10.66%
Cap/Sales(5y)7.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-117.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4.4%
EPS Next Y-410.05%
EPS Next 2Y48.39%
EPS Next 3Y34.89%
EPS Next 5Y25.84%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y31.06%
Revenue growth 5Y-0.25%
Sales Q2Q%8.82%
Revenue Next Year-2.59%
Revenue Next 2Y2.97%
Revenue Next 3Y2.79%
Revenue Next 5Y2.79%
EBIT growth 1Y1.59%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1551.03%
EBIT Next 3Y158.83%
EBIT Next 5Y111.03%
FCF growth 1Y1087.5%
FCF growth 3Y4.89%
FCF growth 5Y17.01%
OCF growth 1Y27.94%
OCF growth 3Y22.85%
OCF growth 5Y9.18%