Trican Well Service Ltd. Fundamental Analysis
Trican Well Service Ltd. (TOLWF) shows moderate financial fundamentals with a PE ratio of 14.10, profit margin of 9.47%, and ROE of 17.25%. The company generates $1.2B in annual revenue with strong year-over-year growth of 11.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TOLWF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTOLWF demonstrates superior asset utilization.
Valuation Score
ExcellentTOLWF trades at attractive valuation levels.
Growth Score
ModerateTOLWF shows steady but slowing expansion.
Financial Health Score
ExcellentTOLWF maintains a strong and stable balance sheet.
Profitability Score
ModerateTOLWF maintains healthy but balanced margins.
Key Financial Metrics
Is TOLWF Expensive or Cheap?
P/E Ratio
TOLWF trades at 14.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TOLWF's PEG of 1.29 indicates fair valuation.
Price to Book
The market values Trican Well Service Ltd. at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.66 times EBITDA. This is generally considered low.
How Well Does TOLWF Make Money?
Net Profit Margin
For every $100 in sales, Trican Well Service Ltd. keeps $9.47 as profit after all expenses.
Operating Margin
Core operations generate 14.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.25 in profit for every $100 of shareholder equity.
ROA
Trican Well Service Ltd. generates $11.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Trican Well Service Ltd. produces operating cash flow of $263.85M, showing steady but balanced cash generation.
Free Cash Flow
Trican Well Service Ltd. generates strong free cash flow of $195.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
TOLWF converts 12.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How TOLWF Stacks Against Its Sector Peers
| Metric | TOLWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.10 | 20.85 | Better (Cheaper) |
| ROE | 17.25% | 1014.00% | Weak |
| Net Margin | 9.47% | -57829.00% (disorted) | Weak |
| Debt/Equity | 0.08 | -0.46 (disorted) | Distorted |
| Current Ratio | 2.23 | 4.93 | Strong Liquidity |
| ROA | 11.69% | -10983113.00% (disorted) | Strong |
TOLWF outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Trican Well Service Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
276.82%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
165.63%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
223.18%
Industry Style: Cyclical, Value, Commodity
High Growth