McCoy Global: Early Progress In Rig Automation, But Scale Remains Unproven

Stork Research
14 Followers
(11min)

Summary

  • McCoy Global’s 2024 revenue rose 11% to C$77.5M, with net income up 36% as higher-margin SmartProduct sales continued to gain momentum.
  • In Q1 2025, SmartProducts reached 59% of revenue, while legacy tools declined 30%, signaling a decisive pivot toward integrated automation.
  • The company posted a record C$27.5M backlog, including over C$11M in follow-on orders from MENA — an early sign of deeper regional adoption.
  • McCoy trades at 13.7x earnings and 7.3x EV/EBITDA, above sector medians, reflecting automation progress — but broader adoption and international scale are needed to justify a platform premium.
  • Outlook for 2025 hinges on backlog conversion, SaaS monetization, and proof that the smarTR™ platform can scale without margin erosion.

Drilling rig workers

HHakim

Introduction

McCoy Global (TSXV: TSX:MCB:CA / OTCPK: OTCPK:MCCRF) is a small Canadian oilfield equipment company undergoing a strategic realignment — not something new, but this one may have more teeth. For most of its life, McCoy built mechanical rig tools. More recently, it’s been leaning into

This article was written by

14 Followers
Stork Research is the work of a private investor with four years of experience specializing in overlooked and undercovered markets. With a focus on micro-cap and small-cap equities exhibiting strong growth at reasonable valuations (GARP), Stork Research emphasizes deep, fundamentals-based analysis in sectors such as industrials and technology—areas historically rich in multi-bagger potential. While typically avoiding highly cyclical industries, Stork occasionally targets recovery-phase opportunities or contrarian plays in severely overvalued names where sentiment diverges from long-term value. The geographic scope spans the U.S., Canada, and select European markets, including Poland and Germany. With a background in Computer Science (BSc) and International Economics (MSc), and leadership in multiple investment clubs, Stork Research aims to sharpen investment thesis development while helping readers uncover inefficiencies and find unique, high-conviction ideas off the beaten path.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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