Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 17 Jul, 25 | MCB | Buy | CAD 4.1 | CAD 4.32 | CAD 4.51 | 12 days | Closed |
9.27%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
McCoy Global Inc. provides equipment and technologies designed to support tubular running operations that enhance wellbore integrity and assist with collecting data for the energy industry in the United States, Latin America, the Middle East, Africa, Europe, the Asia Pacific, and Canada. The company designs, produces, and distributes capital equipment; aftermarket products and services, such as technical support, consumables, and replacement parts; and data collection technologies used in rugged applications in the energy, construction, marine, and aerospace industries. The company also offers wellbore construction equipment comprising DWCRT casing running tools, wireless torque subs, MTT torque turn monitoring systems, hydraulic power tongs, bucking units, hydraulic power units, and weTORQ roughnecks; drawworks products consisting of mudsaver valves, AutoFill, side entry swivels, and drift bars; control and monitoring systems, such as winch control, anchor monitoring, crane monitoring, and instrumented sheave systems; and sensors for harsh environments, including land oil rigs, offshore oil/gas rigs, mobile crawler cranes, and marine vessels, as well as tower, boom, and bridge cranes. In addition, the company provides gauging, calibration, service, and training; dies and inserts for pipe handling tools; and parts and consumables. Further, it offers smarTR products, including smartCRT hydraulic and mechanical, link tilt systems, dynamic bail arms, smartFMS flush mounted spider, and VTR virtual thread rep. Additionally, the company repairs, maintains, and calibrates its capital equipment and related products; and leases its equipment and technologies. It sells its products under the McCoy Global brand through direct sales channels, agents, re-sellers, and distributors. The company was formerly known as McCoy Corporation and changed its name to McCoy Global Inc. in July 2014. McCoy Global Inc. was founded in 1914 and is headquartered in Edmonton, Canada.
Higher Gross Margin
(34.2% in Q1 2025 vs 30.4% of Industry Median)
Higher Current Ratio
(2.77x in Q1 2025 vs 1.80x of Industry Median)
Higher Cash Cycle Days
(369.0 Days in Q1 2025 vs 70.2 Days of Industry Median)
Lower Net Margin
(4.9% in Q1 2025 vs 6.3% of Industry Median)
Volatility in the commodity price , Interest and foreign exchange rates, Trade tariffs, Government policy, etc.
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 4.1 | 3.72 | 4.32 | 4.51 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
1. Financial Highlights-In Q1 2025, the company reported strong revenue growth of 17.0% year-over-year, with sales rising to CAD 19.3 million from CAD 16.5 million, driven by robust demand for newly commercialized smartProducts. Gross profit also saw a healthy increase of 26.9%, reaching CAD 6.6 million, supported by a favorable shift in the product mix toward higher-margin smartProduct offerings and away from traditional capital equipment. However, earnings before income taxes declined by 9.1% to CAD 1.0 million, primarily due to increased general and administrative expenses along with higher product development and support costs. Net earnings fell slightly by 3.1% to CAD 0.94 million, mainly due to a rise in income tax expenses.
2. Healthy Growth from High-Margin smartProducts- In Q1 2025, the company's smartProducts, led by smarTR and smartCRT, generated 59% of revenue—up from 31% a year prior—boosting gross margin to 34% and Adjusted EBITDA by 53% YoY. Securing CAD 11 mn in new smarTR contracts and expanding into Latin America and the Middle East, the company is gaining global TRS market share and recurring revenue potential.
3. Resilient Operating Model and Capital Efficiency- Despite macroeconomic headwinds and soft North American drilling, it delivered decent EBITDA growth and stable cash flow. With active capital returns, supply chain optimization, and trade risk management, the company remains financially resilient. As it shifts to a tech-driven model, the company is positioned for sustained value creation and higher-margin, recurring software-enabled revenue.
4. Strategic Positioning for Long-Term Value Creation- The company's technology roadmap advances its shift from cyclical drilling reliance toward automation, AI, and SaaS models. Enhanced smartCRT tools, offshore initiatives, and software integration support long-term trends in safety, cost reduction, and efficiency. With operations in over 50 countries, recent international trial wins, and trade adaptability, it is positioned for sustained global growth and competitive advantage.
Considering the expected valuation upside, decent production, expanding capacity, higher financials, positive guidance, focused on curbing cost, current trading levels and key business risks, a ‘Buy’ recommendation has been given on the stock at the last closing price of CAD 4.10, as on July 16, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas Equipment & Services
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MCB Mccoy Global Inc |
- -% | 2.65 | 14.08 | 9.54 | 1.12 | 1.61 | 1.16 | 7.53 |
| TVK Terravest Capital Inc |
-3.74 2.37% | 154.19 | 34.72 | 28.49 | 2.47 | 4.38 | 3.38 | 16.37 |
| EFX Enerflex Ltd. |
0.07 0.33% | 21.60 | 12.21 | 12.66 | 0.93 | 1.23 | 0.88 | 4.49 |
| CEU CES Energy Solutions Corp |
0.13 1.07% | 12.25 | 12.01 | 10.42 | 0.87 | 2.63 | 1.05 | 6.89 |
| TCW Trican Well Service Ltd. |
0.07 1.17% | 5.61 | 9.79 | 9.00 | 1.20 | 2.77 | 1.34 | 6.05 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Jul 16,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
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