Cathedral Energy Services (TSX:CET) GF Value Rank : 10 (As of May. 31, 2024)

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What is Cathedral Energy Services GF Value Rank?

Cathedral Energy Services has the GF Value Rank of 10.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Cathedral Energy Services's GF Value Rank

For the Oil & Gas Drilling subindustry, Cathedral Energy Services's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cathedral Energy Services's GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Cathedral Energy Services's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Cathedral Energy Services's GF Value Rank falls into.

Cathedral Energy Services GF Value Rank Related Terms

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Cathedral Energy Services (TSX:CET) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Cathedral Energy Services Ltd (TSX:CET) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CETEF:USA

Address

6030 - 3rd Street S.E., Calgary, AB, CAN, T2H 1K2

Website

https://www.cathedralenergyservices.com

Cathedral Energy Services Ltd is a Canadian-based company that is involved and engaged in the business of providing directional drilling services to oil and natural gas companies in western Canada and the United States. The Directional Drilling division provides horizontal, directional, and underbalanced drilling services. Geographically the company caters its services to Canada and the United States, of which a majority of the revenue is derived from United States.

Executives

Roderick Donald Maxwell

Director, Senior Officer