Trican Well Service Ltd

Sound bite for Twitter and StockTwits is: Industrial Services Stock. The stock price is probably reasonable, but there is probably a higher risk in this stock which possible future rewards may not cover. Unfortunately there will probably not be much recover in oil and gas prices. So companies will have to figure out how to make money in the current market conditions. See my spreadsheet on Trican Well Service Ltd.

I do not own this stock of Trican Well Service Ltd (TSX-TCW, OTC-TOLWF). I was following Canyon Services Group Inc. and Trican Well Services Ltd. had a plan of arrangement with Canyon Shareholders. This review goes from Canyon Services (to 2016) to Trican Well Services (to current time). The current company is 56% from Trican Well Services and 44% is from Canyon Group Services. Since this new company of Trican you must follow from somewhere and because I was already following Canyon, I decided to follow the new bigger company from Canyon.

Neither company is currently paying dividends. Canyon stopped theirs this year and Trican has not paid any dividend since 2004. Hopefully dividends will be restarted otherwise I will consider dropping this stock from my list completely. A lot of companies are currently having difficulties, especially those connected with the oil and gas industry such as this company.

The combined company has good debt ratios. The current Liquidity Ratio is 1.80 and the current debt ratio is 3.87. The current Leverage and Debt/Equity Ratios are 1.33 and 0.33 respectively. Good debt ratios can help see a company through bad times.

Looking at the stock price via Price/Earnings per Share is not helpful. There are too many years of earning losses. Trican is also expected to have an earnings loss for 2017 so there is no current P/E Ratio. However, analysts do expect that the company will have earnings in 2018 and 2019. On the other hand these estimates are far off. The further in the future the estimates are the more unreliable they are.

I get a current Graham Price of $4.45. The 10 year low, median and high median Price/Graham Price Ratios are 0.52, 0.94 and 1.31. The current P/GP Ratio is 0.98 based on a stock price of $4.35. This stock price testing suggests that the stock price is reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.59. The current P/B Ratio is 1.33 a value some 16% lower. The current P/B Ratio is based on a book value of $1,130M, BVPS of $3.26 and a stock price of $4.35. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year Price/Sales (Revenue) Ratio is 1.82. The current P/S Ratio is 1.65 based on 2017 Revenue estimate of $911M, Revenue per Share of $2.63 and a stock price of $4.35. The current P/S Ratio is some 9% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations I find Strong Buy (4), Buy (10) and Hold (3) recommendations. The consensus recommendation is a Buy. The 12 month stock price consensus is $5.35. This implies a total return of 22.99% with 22.99% from capital gains and 0% from dividends.

An article on Small Cap Power approves of this company and says that it is a good time to buy. The staff at Financial News Week gives some tech analysis of this stock. See what analysts are saying about this stock on Stock Chase. Some do not like the sector this company is in.

Trican Well Service Ltd. is a Canada-based oilfield services company. The Company provides an array of specialized products, equipment, services and technology for use in the drilling, completion, stimulation and reworking of oil and gas wells in Canada, the United States, Kazakhstan, Russia and Norway, as well as limited operations in Saudi Arabia and Colombia. Its web site is here Trican Well Service Ltd.

The last stock I wrote about was about was Wajax Corp. (TSX-WJX, OTC- WJXFF)... learn more. The next stock I will write about will be Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more on Wednesday, September 27, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Edward Yardeni... learn more on Tuesday, September 26, 2017 around 5 pm.

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.

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