Education
About Us
Working with TipRanks
Follow Us
Calfrac Well Services (TSE:CFW)
:CFW
Top Page
Calfrac Well Services
(TSX:CFW)
57Neutral
Calfrac Well Services (CFW) vs. S&P 500 (SPY)
Market Cap
C$286.01M
Dividend YieldN/A
Average Volume (3M)150.04K
Price to Earnings (P/E)27.5
Beta (1Y)0.94
Revenue Growth-15.92%
EPS Growth-94.84%
CountryCA
Employees2,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding85,889,460
10 Day Avg. Volume207,198
30 Day Avg. Volume150,036
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.21
Price to Cash Flow (P/CF)0.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.50Price Target Upside35.14% Upside
Rating ConsensusHold
Number of Analyst Covering1
Calfrac Well Services Business Overview & Revenue Model
Company DescriptionCalfrac Well Services (CFW) is a leading provider of specialized oilfield services, focusing primarily on hydraulic fracturing, coiled tubing, cementing, and other well stimulation services. The company operates in North America and has a presence in several international markets. Calfrac plays a crucial role in enhancing oil and natural gas production for its clients by offering tailored solutions that optimize reservoir performance.
How the Company Makes MoneyCalfrac Well Services generates revenue through contracts with oil and gas exploration and production companies that require its specialized services to enhance well productivity. The primary revenue streams include hydraulic fracturing services, which involve pumping a mixture of water, sand, and chemicals into wells to enhance oil and gas flow; coiled tubing services, which are used for well maintenance and intervention; and cementing services, which are essential for well integrity. Additionally, Calfrac may engage in partnerships or long-term agreements with major energy companies, contributing to a steady income stream. The company’s earnings are influenced by factors such as oil and gas market conditions, technological advancements in its service offerings, and its ability to efficiently manage operational costs.
Calfrac Well Services Financial Statement Overview
Summary
Calfrac Well Services shows mixed financial performance. The income statement indicates declining profitability with significant margin decreases. The balance sheet reflects moderate stability but increased leverage. Cash flow analysis presents challenges with negative free cash flow, signaling potential liquidity issues.Income Statement
The income statement shows a mixed performance. The gross profit margin for 2023 was 17.15%, but it declined to 7.05% in 2024. The net profit margin also decreased from 10.23% in 2023 to 0.66% in 2024. Revenue growth has been volatile, with a decrease of 15.92% from 2023 to 2024. EBIT and EBITDA margins have seen significant fluctuations, indicating instability in core operations.65
Positive
Balance Sheet
Calfrac Well Services' balance sheet reflects moderate stability. The debt-to-equity ratio improved from 0.45 in 2023 to 0.53 in 2024, suggesting a slight increase in leverage. The return on equity decreased from 30.96% in 2023 to 1.59% in 2024, indicating lower profitability. The equity ratio improved slightly, showcasing a stable asset base.70
Positive
Cash Flow
Cash flow analysis reveals challenges. Free cash flow turned negative in 2024, showing a decline from 2023. The operating cash flow to net income ratio decreased from 1.48 in 2023 to 12.25 in 2024, while the free cash flow to net income ratio deteriorated significantly, indicating potential liquidity issues.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.57B | 1.86B | 1.50B | 1.00B | 705.44M | Gross Profit |
| 110.49M | 268.13M | 154.61M | -18.62M | -101.14M | EBIT |
| 0.00 | 207.51M | 92.41M | -64.22M | -150.02M | EBITDA |
| 177.35M | 352.93M | 193.06M | 44.06M | 107.68M | Net Income Common Stockholders |
| 10.38M | 190.67M | 35.30M | -82.81M | -324.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.05M | 34.14M | 8.50M | -20.56M | 29.83M | Total Assets |
| 1.23B | 1.13B | 995.75M | 892.96M | 912.46M | Total Debt |
| 344.39M | 275.20M | 354.91M | 410.39M | 346.60M | Net Debt |
| 300.35M | 241.06M | 346.41M | 430.96M | 316.77M | Total Liabilities |
| 581.51M | 510.29M | 572.78M | 564.12M | 502.23M | Stockholders Equity |
| 653.33M | 615.90M | 422.97M | 328.84M | 410.23M |
| Cash Flow | Free Cash Flow | |||
| -58.95M | 113.00M | 27.72M | -78.77M | -21.67M | Operating Cash Flow |
| 127.18M | 281.63M | 107.53M | -15.34M | 24.52M | Investing Cash Flow |
| -169.65M | -144.77M | -74.33M | -61.29M | -42.52M | Financing Cash Flow |
| 43.94M | -84.13M | -33.53M | 45.85M | 8.60M |
Calfrac Well Services Technical Analysis
Negative
3.33
Price Trends
3.75
Negative
3.82
Negative
3.91
Negative
Market Momentum
<0.01
Negative
52.52
Neutral
52.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CFW, the sentiment is Negative. The current price of 3.33 is below the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.75, and below the 200-day MA of 3.91, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 52.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CFW.
Calfrac Well Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$806.23M | 7.81 | 21.89% | 4.92% | 0.84% | -1.74% | |
74 Outperform | C$351.21M | 5.93 | 11.04% | 4.24% | 2.65% | 52.69% | |
70 Outperform | $1.44B | 7.78 | 26.23% | 2.37% | 8.79% | 31.76% | |
59 Neutral | C$278.16M | 148.46 | 0.49% | ― | 0.98% | -96.29% | |
57 Neutral | C$286.01M | 27.48 | 1.34% | ― | -15.92% | -94.84% | |
57 Neutral | $7.68B | 4.29 | -3.52% | 6.80% | -0.14% | -64.60% | |
53 Neutral | C$379.32M | 14.37 | -1.55% | ― | -6.00% | -150.20% |
* Energy Sector Average
Performance Comparison
TSE:CFW
Calfrac Well Services
3.33
-1.25
-27.29%
TSE:CEU
CES Energy Solutions
6.40
0.84
15.03%
TSE:TCW
Trican Well Service
4.28
-0.08
-1.86%
TSE:ESI
Ensign Energy Services
2.06
-0.53
-20.46%
TSE:TOT
Total Energy Services
9.23
-1.03
-10.04%
TSE:STEP
STEP Energy Services
3.64
-0.48
-11.65%
Calfrac Well Services Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -8.52% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While Calfrac achieved significant safety milestones and expanded operations in Argentina, financial metrics showed notable declines, particularly in North America due to market challenges and asset write-offs. The company's focus on fleet modernization and Argentina's growth prospects offer positive outlooks, but tariff uncertainties and U.S. market pressures pose challenges.Highlights
Record Safety Performance
Calfrac achieved a new record in safety with a TRIF of 0.92, improved from 1.05 in 2023, demonstrating a strong safety culture.
Fleet Modernization and Expansion
The company ended the year with 66 Tier IV pumps and plans to operate five Tier IV fleets in North America by the end of Q1 2025. Additionally, Calfrac expanded its operations in Argentina, deploying a second large fracturing fleet into the Vaca Muerta shale play earlier than planned.
Argentina Growth Prospects
Record financial results in Argentina were driven by higher fracturing activity, with further expansion planned in the Vaca Muerta shale play, supported by a $50 million capital investment funded locally.
Balance Sheet Strength
Calfrac had $273.9 million in working capital at the end of Q4 2024, including $44 million in cash. The company maintained a net debt to adjusted EBITDA ratio of 1.57 and was compliant with bank covenants.
Lowlights
Revenue and EBITDA Decline
Q4 2024 revenue was $381.2 million, down 10% from the same period in 2023. Adjusted EBITDA fell 45% to $34.5 million due to lower utilization in North America and weaker pricing in the U.S.
Net Loss and Asset Write-off
Calfrac reported a net loss of $6.4 million in Q4 2024, compared to a net income of $13.2 million in Q4 2023. This was impacted by a $12.7 million write-off of obsolete fracturing assets in the U.S. and a one-time depreciation expense adjustment.
Challenges in U.S. Market
The U.S. market faced lower activity and pricing, with a notable 10% revenue decline from the previous year, coupled with a challenging start to Q1 2025.
Tariff Impact and Cost Pressures
The introduction of tariffs is anticipated to impact costs of imported items, such as sand and chemicals, from the U.S., adding uncertainty to the supply chain.
Company Guidance
During the Calfrac Well Services Limited Fourth Quarter 2024 earnings call, the company provided several key metrics and guidance for the future. The fourth quarter revenue from continuing operations was reported at $381.2 million, a 10% decrease compared to the same period in 2023, primarily due to lower activity and pricing in the U.S. Adjusted EBITDA was $34.5 million, marking a 45% decline year-over-year. The company recorded a net loss of $6.4 million, contrasted with a net income of $13.2 million in the previous year, affected by a $12.7 million write-off of obsolete assets and a 12.2 impact on depreciation expense. Calfrac's working capital stood at $273.9 million, including $44 million in cash. The Board approved a capital budget of $135 million for 2025, with $50 million allocated for expansion in Argentina. The company ended the year with a net debt to adjusted EBITDA ratio of 1.57. Looking ahead, Calfrac plans to operate five Tier IV fracturing fleets in North America by the end of the first quarter and continue expanding in Argentina with two large fracturing fleets in the Vaca Muerta shale play. The company remains optimistic about its prospects in 2025, despite challenges such as tariffs affecting input costs and seasonal slowdowns.Calfrac Well Services Corporate Events
Financial Disclosures
Calfrac Well Services to Announce Q1 2025 Financial Results
Neutral
Apr 9, 2025
Calfrac Well Services Ltd. announced that it will release its first quarter 2025 financial results on May 15, 2025, before the market opens. The company has scheduled a conference call and webcast for the same day to discuss the results. This announcement highlights Calfrac’s commitment to transparency and communication with its stakeholders, potentially impacting its market positioning by keeping investors informed about its financial performance.
Spark’s Take on TSE:CFW Stock
According to Spark, TipRanks’ AI Analyst, TSE:CFW is a Neutral.
Calfrac’s overall stock score is 57, reflecting a blend of strengths and weaknesses. The company’s financial performance and earnings call highlight significant challenges, including declining profitability and market pressures. Technical analysis suggests a cautious stance with current downward trends. The valuation is fair, but the absence of a dividend yield limits investor appeal. Expansion efforts in Argentina offer potential growth, but U.S. market issues and tariff impacts present risks.
To see Spark’s full report on TSE:CFW stock, click here.
Executive/Board ChangesBusiness Operations and Strategy
Calfrac Well Services Announces CEO Resignation
Neutral
Mar 14, 2025
Calfrac Well Services Ltd. announced the immediate resignation of its CEO, Pat Powell, who also stepped down from his position as a director. The company has expressed gratitude for Powell’s contributions over the past three years and will begin the search for a permanent replacement. This leadership change comes at a time when Calfrac continues to focus on its core operations in North America and Argentina, maintaining its commitment to safety, efficiency, and profitability.
Business Operations and StrategyFinancial Disclosures
Calfrac Well Services Reports Fourth Quarter 2024 Results Amid Market Challenges
Neutral
Mar 13, 2025
Calfrac Well Services Ltd. reported a revenue decline of 11% in the fourth quarter of 2024 due to seasonal slowdowns, with an annual revenue drop of 16% compared to 2023. Despite these challenges, the company improved its safety record and plans to strategically deploy capital to navigate market conditions and expand its operations in Argentina, aiming for sustainable returns for shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.