Canyon Services Group

Sound bite for Twitter and StockTwits is: Probably cheap and risky. I think you can probably make more money and dividends from companies that service the oil and gas industry than companies in the oil and gas extraction industry. You would buy such companies for diversification. See my spreadsheet on Canyon Services Group .

I do not own this stock of Canyon Services Group (TSX-FRC, OTC-CYSVF). I get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19, 2012 and I was impressed with it so I did a spreadsheet. You can sign up for this newsletter at their site.

This company was just listed on the TSX in 2006. In 2011 the company started to pay dividends. This year, 2016, the company suspended dividends after they had a negative earnings year in 2015. They will probably restart them at some time in the future. Since this company is in the business of services to the oil and gas industry, it is hardly surprising that it is having difficulties.

Last was not a good year for this company. It had an earnings loss and lower revenue and cash flow. Debt ratios are fairly good. The Liquidity Ratio for 2015 was 1.43 and it has a 5 year median of 1.54. I would prefer for safety's sake that this ratio be 1.50 or high. The Debt Ratio at 3.13 is good. I like this ratio to be 1.50 or higher. The Leverage and Debt/Equity Ratios are good at 1.47 and 0.47 respectively.

I cannot do stock price testing using Price/Earnings Ratios because they have had a number of negative earnings years. This can result in impossibly low P/E Ratios. For example the 10 year median P/E Ratio is 1.72. Because of negative earnings the Graham Price is also probably off. I get $2.61 and a current Price/Graham Price Ratio of 1.80. This is rather high. Since they have cut the dividends, I cannot do any stock price testing using the dividend yield.

The 10 year Price/Book Value per Share Ratio is 2.04. The current P/B Ratio is 1.09 a values some 47% lower. The current P/B Ratio is based on BVPS of $4.31 and a stock price of $4.69. This stock price testing suggests that the stock price is relatively cheap. This is always a good test because it does not use estimates.

The other thing I can look at is P/S Ratio. The 10 year median P/S Ratio is 1.87. The current P/S Ratio is 1.71 a value some 9% lower. The current P/S Ratio is based on Revenue of $236M and Revenue per Share of $2.75. However, for 2017 and 2018 the P/S Ratio just goes down. It would be 0.99 in 2017 on revenue estimate of $408M and 0.78 on revenue estimate of $514M. These are 47% lower and 58% lower than the current P/S Ratio.

When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 months consensus stock price is $6.71. This implies a 43.07% total return with 43.07% from capital gains and 0% from dividends.

Trent Williams on Community Financial News talks about recent analysts' recommendations. Most are a Buy. A recent press release was on Stockhouse which talked about Canyon is upgrading 11 existing hydraulic horse power pumps. This article by Dan Healing of Calgary Herald talks about more people being paid by the day or hour rather than by salary at this company.

I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here.

The last stock I wrote about was about was Canadian Utilities Ltd. (TSX-CU, OTC-CDUAF)... learn more . The next stock I will write about will be Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more on Friday, September 30, 2016 around 5 pm. Tomorrow on my other blog I will write about Money Show 2016 - Stephen Moore... learn more on Thursday, September 29, 2016 around 5 pm.

Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and carbon dioxide, to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services Group.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.