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Total Energy Services (TSE:TOT)
:TOT
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Total Energy Services
(TSX:TOT)
79Outperform
Total Energy Services (TOT) vs. S&P 500 (SPY)
Market Cap
C$347.79M
Dividend Yield3.91%
Average Volume (3M)56.16K
Price to Earnings (P/E)5.9
Beta (1Y)0.79
Revenue Growth-0.83%
EPS Growth-27.55%
CountryCA
Employees1,904
SectorEnergy
Sector Strength64
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.55
Shares Outstanding38,051,000
10 Day Avg. Volume80,701
30 Day Avg. Volume56,163
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)1.50
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Total Energy Services Business Overview & Revenue Model
Company DescriptionTotal Energy Services (TOT) is a diversified energy services company operating primarily in the oil and gas industry. The company offers a comprehensive range of products and services, including contract drilling services, rental and transportation services, and gas compression services. Its operations are segmented into three main divisions: Drilling Services, Rentals and Transportation Services, and Compression and Process Services. Through these divisions, Total Energy Services provides essential support to upstream oil and gas producers, enhancing their operational efficiency and productivity.
How the Company Makes MoneyTotal Energy Services generates revenue through its three primary business segments. The Drilling Services division earns income by providing contract drilling services, which involves deploying drilling rigs and personnel to extract oil and gas on behalf of clients. The Rentals and Transportation Services division generates revenue by renting out specialized oilfield equipment and providing transportation services for the movement of rigs, equipment, and materials. The Compression and Process Services division contributes to earnings by designing, fabricating, and servicing compression and process equipment used in the extraction and processing of natural gas. Additionally, the company may form partnerships or enter into agreements with oil and gas producers, which can lead to long-term contracts and steady revenue streams. Market demand for oil and gas, the level of exploration and production activities, and the overall health of the energy sector are significant factors influencing the company's financial performance.
Total Energy Services Financial Statement Overview
Summary
Total Energy Services exhibits strong financial health with significant revenue growth and profitability. The balance sheet is stable with low leverage and strong equity, while cash flows are robust, indicating good liquidity for growth initiatives. However, there's room for improving net profit margins and returns on equity.Income Statement
Total Energy Services demonstrates strong profitability with a TTM gross profit margin of 16.03% and EBIT margin of 10.03%, reflecting operational efficiency. The company has achieved consistent revenue growth, with a notable increase from $365.75 million in 2020 to $873.72 million in the TTM period. However, net profit margins remain modest at 4.90%. Overall, the income statement metrics indicate a solid performance, although there is room for improving net profitability.82
Very Positive
Balance Sheet
The balance sheet of Total Energy Services shows a healthy equity ratio of 58.21%, indicating strong financial stability. The debt-to-equity ratio is relatively low at 0.27, suggesting manageable leverage. Return on equity stands at 7.64%, which, while positive, indicates potential for higher returns. The company's balance sheet is robust, providing a stable foundation for future growth, albeit with opportunities to enhance returns on equity.75
Positive
Cash Flow
The cash flow statement reveals a positive trajectory with a TTM operating cash flow to net income ratio of 3.80 and a free cash flow to net income ratio of 1.92, indicating strong cash generation relative to earnings. Free cash flow growth is evident, with a TTM increase from $70.70 million in the previous year to $82.03 million. These metrics highlight the company's effective cash management and potential for reinvestment and debt reduction.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 873.72M | 892.40M | 759.81M | 431.58M | 365.75M | 757.40M | Gross Profit |
| 140.07M | 133.34M | 91.19M | 25.42M | -14.33M | 71.62M | EBIT |
| 87.69M | 84.62M | 49.34M | -1.46M | -36.54M | 16.80M | EBITDA |
| 176.18M | 168.96M | 131.32M | 85.97M | 81.05M | 107.83M | Net Income Common Stockholders |
| 42.84M | 41.63M | 38.01M | -428.00K | -30.45M | 10.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 30.64M | 47.94M | 34.06M | 33.37M | 23.00M | 19.87M | Total Assets |
| 1.08B | 861.66M | 878.62M | 813.52M | 849.58M | 997.16M | Total Debt |
| 294.07M | 108.76M | 134.79M | 202.65M | 247.91M | 298.30M | Net Debt |
| 263.43M | 60.83M | 100.73M | 169.28M | 224.91M | 278.43M | Total Liabilities |
| 517.55M | 330.90M | 356.59M | 320.08M | 338.59M | 454.02M | Stockholders Equity |
| 560.34M | 530.24M | 521.47M | 492.88M | 510.36M | 543.38M |
| Cash Flow | Free Cash Flow | ||||
| 82.03M | 70.70M | 86.67M | 60.59M | 69.22M | 23.74M | Operating Cash Flow |
| 162.68M | 145.95M | 143.40M | 89.58M | 86.12M | 73.06M | Investing Cash Flow |
| -123.53M | -66.83M | -42.26M | -14.25M | -13.54M | -39.21M | Financing Cash Flow |
| -8.78M | -65.24M | -100.44M | -64.95M | -69.46M | -44.61M |
Total Energy Services Technical Analysis
Negative
9.20
Price Trends
11.16
Negative
11.04
Negative
10.13
Negative
Market Momentum
-0.59
Positive
18.05
Positive
7.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOT, the sentiment is Negative. The current price of 9.2 is below the 20-day moving average (MA) of 10.50, below the 50-day MA of 11.16, and below the 200-day MA of 10.13, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 18.05 is Positive, neither overbought nor oversold. The STOCH value of 7.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TOT.
Total Energy 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | C$347.79M | 5.91 | 11.04% | 3.91% | -0.83% | -27.55% | |
78 Outperform | $1.56B | 8.52 | 26.23% | 1.81% | 5.94% | 46.19% | |
75 Outperform | $832.61M | 8.25 | 21.89% | 4.16% | 0.84% | -1.74% | |
73 Outperform | C$387.86M | 14.37 | -1.55% | ― | -7.71% | 48.35% | |
68 Neutral | $892.71M | 8.13 | 6.90% | ― | -0.02% | 60.38% | |
67 Neutral | C$296.29M | 7.17 | 10.71% | ― | 0.05% | -43.08% | |
57 Neutral | $8.40B | 5.59 | -5.99% | 7.42% | -0.03% | -68.66% |
* Energy Sector Average
Performance Comparison
TSE:TOT
Total Energy Services
9.14
-0.52
-5.38%
TSE:CEU
CES Energy Solutions
6.87
2.22
47.87%
TSE:PD
Precision Drilling
63.46
-19.27
-23.29%
TSE:TCW
Trican Well Service
4.40
0.42
10.61%
TSE:ESI
Ensign Energy Services
2.22
-0.29
-11.55%
TSE:STEP
STEP Energy Services
4.07
0.32
8.53%
Total Energy Services Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 0.22% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a record year for Total Energy with strong cash flow and strategic investments in Australia. However, challenges in the U.S. market and operational issues in Australia contributed to decreased margins and revenue in certain segments. The company's strong financial position and dividend increase indicate confidence in future performance, despite current challenges.Highlights
Record Year for Total Energy
2024 was a record year for Total Energy, with significant free cash flow generation used to reduce bank debt by $25.5 million and return $7.1 million to shareholders through dividends and share buybacks.
Strong Financial Position
As of December 31, 2024, Total Energy had $78.7 million of positive working capital, including $38.4 million of cash, and a senior bank debt-to-EBITDA ratio of 0.25 times.
Australian Market Expansion
Fourth quarter operating days in Australia increased by 110% following the acquisition of Saxon, leading to a 173% year-over-year revenue increase in the region.
Dividend Increase
The Board of Directors approved an 11% increase to the dividend, reflecting confidence in future cash flows and financial stability.
Lowlights
Decrease in U.S. Activity
Fourth quarter consolidated EBITDA was $4.7 million lower than in 2023, primarily due to lower U.S. activity levels, resulting in a 60% decrease in CPS revenue and a realization of an operating loss.
Weather and Operational Challenges in Australia
Extended wet weather conditions led to delays and increased costs in Australia, causing operating losses despite higher revenue.
Gross Margin Decline
Fourth quarter gross margin decreased to 23% from 27% in 2023, due to lower operating margins in the CPS and Well Servicing segments.
Foreign Exchange Impact
A negative impact of $4.1 million on Canadian CPS segment operating income arose from foreign exchange translation differences.
Company Guidance
In the fourth quarter of 2024, Total Energy Services reported a 15% increase in consolidated revenue compared to Q4 2023, driven by the acquisition of Saxon, despite lower U.S. drilling activity. EBITDA was $4.7 million lower than the previous year due to decreased U.S. activity and foreign exchange impacts. Revenue distribution was 48% from Canada, 33% from the U.S., and 19% from Australia. By segment, CPS contributed 47% to the consolidated revenue, followed by Contract Drilling Services at 34%. The gross margin decreased to 23% from 27% in 2023, primarily due to lower margins in the CPS and Well Servicing segments. Total Energy's financial position remained strong, with $78.7 million in working capital and a senior debt-to-EBITDA ratio of 0.25 times. The company plans a capital budget of $61.9 million for 2025, focusing on equipment upgrades and maintenance. Despite market uncertainties, strong demand in the CPS segment and favorable conditions in the Australian LNG market provide a positive outlook for the company.Total Energy Services Corporate Events
Total Energy Services Announces 2025 Capital Expenditure Budget
Jan 7, 2025
Total Energy Services Inc. has announced a preliminary capital expenditure budget of $61.9 million for 2025, allocating $34.3 million for expansion and $27.6 million for equipment maintenance and recertifications. The expansion budget includes significant investments in Canadian drilling and service rig upgrades, as well as growth in the North American natural gas compression rental fleet. The company plans to finance these expenditures through cash on hand and operational cash flow, reflecting a strategic focus on enhancing its service offerings and maintaining equipment efficiency.
Total Energy Services Reports Record Q3 2024 Results
Nov 6, 2024
Total Energy Services Inc. achieved record quarterly financial results in Q3 2024, driven by stable market conditions in Canada and Australia and strong demand for compression and process equipment in North America. The company’s strategic acquisition of Saxon Energy Services Australia and significant share repurchases contributed to these impressive results, despite a decline in U.S. drilling activity.
Total Energy Services Reports Record Q3 2024 Results
Nov 6, 2024
Total Energy Services Inc. reports record-breaking quarterly financial results for Q3 2024, driven by stable industry conditions and strategic acquisitions. The company’s substantial share repurchases and strong demand for equipment in North America have bolstered its performance, despite a decline in U.S. drilling activity.
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.