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PHX

PHX Energy Services TSX:PHX Stock Report

Last Price

CA$5.25

Market Cap

CA$264.9m

7D

-10.7%

1Y

18.5%

Updated

06 Aug, 2022

Data

Company Financials +
PHX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends3/6

PHX Stock Overview

PHX Energy Services Corp. provides horizontal and directional drilling technology and services to oil and natural gas exploration and development, and production companies in Canada, the United States, Russia, Albania, and the Middle East.

PHX Energy Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PHX Energy Services
Historical stock prices
Current Share PriceCA$5.25
52 Week HighCA$7.50
52 Week LowCA$3.94
Beta2.4
1 Month Change17.45%
3 Month Change-19.73%
1 Year Change18.51%
3 Year Change118.75%
5 Year Change208.82%
Change since IPO14.13%

Recent News & Updates

Jul 31
Is There An Opportunity With PHX Energy Services Corp.'s (TSE:PHX) 50% Undervaluation?

Is There An Opportunity With PHX Energy Services Corp.'s (TSE:PHX) 50% Undervaluation?

Does the July share price for PHX Energy Services Corp. ( TSE:PHX ) reflect what it's really worth? Today, we will...

Shareholder Returns

PHXCA Energy ServicesCA Market
7D-10.7%-6.2%-0.8%
1Y18.5%22.2%-2.0%

Return vs Industry: PHX underperformed the Canadian Energy Services industry which returned 22.2% over the past year.

Return vs Market: PHX exceeded the Canadian Market which returned -1.9% over the past year.

Price Volatility

Is PHX's price volatile compared to industry and market?
PHX volatility
PHX Average Weekly Movement8.4%
Energy Services Industry Average Movement8.4%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.4%
10% least volatile stocks in CA Market4.4%

Stable Share Price: PHX is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PHX's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995707John Hookshttps://www.phxtech.com

PHX Energy Services Corp. provides horizontal and directional drilling technology and services to oil and natural gas exploration and development, and production companies in Canada, the United States, Russia, Albania, and the Middle East. It offers Velocity Real-Time System, a ground-breaking technology that offers downhole guidance systems; Atlas Motors, a high-performance drilling motors; PowerDrive Orbit RSS, a rotary steerable system; P-360 Positive Pulse MWD System, a measurement while drilling (MWD) tool; and E-360 EM MWD System, an MWD tool that transmits electric signals through geological formations. The company also provides 360 CV MWD System, a clear vision tool, which surveys inclination and gamma in real-time closer to the bit; 360 RWD System, a resistivity while drilling sub; and North Seeking Gyro that offers real-time QA/QC checks downhole, as well as performance drilling motors.

PHX Energy Services Fundamentals Summary

How do PHX Energy Services's earnings and revenue compare to its market cap?
PHX fundamental statistics
Market CapCA$264.86m
Earnings (TTM)CA$13.64m
Revenue (TTM)CA$391.94m

19.4x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PHX income statement (TTM)
RevenueCA$391.94m
Cost of RevenueCA$323.02m
Gross ProfitCA$68.92m
Other ExpensesCA$55.28m
EarningsCA$13.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin17.58%
Net Profit Margin3.48%
Debt/Equity Ratio2.8%

How did PHX perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

72%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PHX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PHX?

Other financial metrics that can be useful for relative valuation.

PHX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA9.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does PHX's PE Ratio compare to its peers?

PHX PE Ratio vs Peers
The above table shows the PE ratio for PHX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14x
WRG Western Energy Services
9.2xn/aCA$135.0m
SDI Stampede Drilling
19.4xn/aCA$47.8m
CMG Computer Modelling Group
19.6x10.0%CA$361.5m
NOA North American Construction Group
7.9x11.9%CA$396.8m
PHX PHX Energy Services
19.4xn/aCA$264.9m

Price-To-Earnings vs Peers: PHX is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the peer average (14x).


Price to Earnings Ratio vs Industry

How does PHX's PE Ratio compare vs other companies in the North American Energy Services Industry?

Price-To-Earnings vs Industry: PHX is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the Canadian Energy Services industry average (16.8x)


Price to Earnings Ratio vs Fair Ratio

What is PHX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PHX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PHX's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of PHX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PHX (CA$5.25) is trading below our estimate of fair value (CA$12.14)

Significantly Below Fair Value: PHX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is PHX Energy Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PHX's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if PHX's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if PHX's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PHX's revenue (19.1% per year) is forecast to grow faster than the Canadian market (6% per year).

High Growth Revenue: PHX's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHX's Return on Equity is forecast to be high in 3 years time (30.3%)


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Past Performance

How has PHX Energy Services performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


66.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PHX has a large one-off gain of CA$15.4M impacting its March 31 2022 financial results.

Growing Profit Margin: PHX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PHX has become profitable over the past 5 years, growing earnings by 66% per year.

Accelerating Growth: PHX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PHX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-8.8%).


Return on Equity

High ROE: PHX's Return on Equity (10.1%) is considered low.


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Financial Health

How is PHX Energy Services's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PHX's short term assets (CA$146.0M) exceed its short term liabilities (CA$92.3M).

Long Term Liabilities: PHX's short term assets (CA$146.0M) exceed its long term liabilities (CA$46.9M).


Debt to Equity History and Analysis

Debt Level: PHX has more cash than its total debt.

Reducing Debt: PHX's debt to equity ratio has reduced from 6.9% to 2.8% over the past 5 years.

Debt Coverage: PHX's debt is well covered by operating cash flow (1063.9%).

Interest Coverage: PHX's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


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Dividend

What is PHX Energy Services's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PHX's dividend (5.71%) is higher than the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: PHX's dividend (5.71%) is in the top 25% of dividend payers in the Canadian market (5.36%)


Stability and Growth of Payments

Stable Dividend: PHX's dividend payments have been volatile in the past 10 years.

Growing Dividend: PHX's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72%), PHX's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: PHX is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

15.3yrs

Average management tenure


CEO

John Hooks (64 yo)

27.58yrs

Tenure

CA$2,642,470

Compensation

Mr. John Michael Hooks serves as Director at Crew Energy Inc. since April 8, 2022. He has been the Chief Executive Officer of PHX Energy Services Corp., since 1995 and served as its President since 1995 un...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.04M) is above average for companies of similar size in the Canadian market ($USD705.66K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PHX's management team is seasoned and experienced (15.3 years average tenure).


Board Members

Experienced Board: PHX's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PHX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

PHX Energy Services Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: PHX Energy Services Corp.
  • Ticker: PHX
  • Exchange: TSX
  • Founded: 1995
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Implied Market Cap: CA$264.865m
  • Shares outstanding: 50.45m
  • Website: https://www.phxtech.com

Number of Employees


Location

  • PHX Energy Services Corp.
  • 250 2nd Street SW
  • Suite 1400
  • Calgary
  • Alberta
  • T2P 0C1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.