TSX:PHX

Stock Analysis Report

PHX Energy Services

Executive Summary

PHX Energy Services Corp., through its subsidiaries, 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, and Albania.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has PHX Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PHX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

PHX

3.9%

CA Energy Services

2.1%

CA Market


1 Year Return

-81.0%

PHX

-72.6%

CA Energy Services

-21.2%

CA Market

Return vs Industry: PHX underperformed the Canadian Energy Services industry which returned -72.6% over the past year.

Return vs Market: PHX underperformed the Canadian Market which returned -21.2% over the past year.


Shareholder returns

PHXIndustryMarket
7 Day1.5%3.9%2.1%
30 Day-58.5%-46.8%-13.8%
90 Day-75.3%-60.0%-21.9%
1 Year-81.0%-81.0%-71.1%-72.6%-18.6%-21.2%
3 Year-82.5%-82.5%-80.0%-82.0%-11.0%-19.3%
5 Year-91.4%-91.6%-82.5%-84.9%1.6%-13.6%

Price Volatility Vs. Market

How volatile is PHX Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PHX Energy Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHX (CA$0.66) is trading below our estimate of fair value (CA$6.93)

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


Price To Earnings Ratio

PE vs Industry: PHX is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: PHX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PHX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PHX is good value based on its PB Ratio (0.2x) compared to the CA Energy Services industry average (0.3x).


Next Steps

Future Growth

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

90.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: PHX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PHX's is expected to become profitable in the next 3 years.

Revenue vs Market: PHX's revenue is expected to decline over the next 3 years (-7.5% per year).

High Growth Revenue: PHX's revenue is forecast to decline over the next 3 years (-7.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHX's Return on Equity is forecast to be low in 3 years time (1.7%).


Next Steps

Past Performance

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

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHX is currently unprofitable.

Growing Profit Margin: PHX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PHX is unprofitable, but has reduced losses over the past 5 years at a rate of 2.5% per year.

Accelerating Growth: Unable to compare PHX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PHX is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (4.1%).


Return on Equity

High ROE: PHX has a negative Return on Equity (-1.49%), as it is currently unprofitable.


Next Steps

Financial Health

How is PHX Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: PHX's short term assets (CA$137.6M) exceed its short term liabilities (CA$69.2M).

Long Term Liabilities: PHX's short term assets (CA$137.6M) exceed its long term liabilities (CA$59.1M).


Debt to Equity History and Analysis

Debt Level: PHX's debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: PHX's debt to equity ratio has reduced from 51.6% to 17% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PHX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PHX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 0.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PHX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PHX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PHX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PHX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PHX is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PHX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

12.9yrs

Average management tenure


CEO

John Hooks (61yo)

25.25s

Tenure

CA$2,056,936

Compensation

Mr. John Michael Hooks has been the Chief Executive Officer and President at Phoenix Technology Income Fund since 1995. In 1985, Mr. Hooks founded Thread Tech Energy Systems Ltd., and serves as its Chief E ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.47M) is above average for companies of similar size in the Canadian market ($USD157.89K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Hooks
Chairman & CEO25.25yrsCA$2.06m14.92% CA$5.2m
Michael Buker
President5.08yrsCA$1.62m0.39% CA$136.8k
Cameron Ritchie
Senior VP of Finance22.33yrsCA$1.25m0.21% CA$72.6k
Craig Brown
Senior Vice President of Engineering & Technology8.58yrsCA$1.25m0.18% CA$62.5k
Jeffery Shafer
Senior Vice President Sales & Marketing12.92yrsCA$1.30m0.26% CA$91.0k

12.9yrs

Average Tenure

50yo

Average Age

Experienced Management: PHX's management team is seasoned and experienced (12.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Hooks
Chairman & CEO25.25yrsCA$2.06m14.92% CA$5.2m
Roger Thomas
Independent Director7.83yrsCA$103.50k0.19% CA$66.0k
Myron Tétreault
Lead Directorno dataCA$112.00k0.26% CA$92.4k
Randolph Charron
Independent Director17.42yrsCA$95.00k0.11% CA$38.1k
Terry Freeman
Independent Director1.92yrsCA$66.67k0.0075% CA$2.6k
Judith Athaide
Independent Director10.92yrsCA$102.00k0.013% CA$4.6k
Lawrence Hibbard
Independent Director9.17yrsCA$107.00k0.14% CA$48.2k

10.0yrs

Average Tenure

61yo

Average Age

Experienced Board: PHX's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PHX Energy Services Corp.'s company bio, 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
  • Market Cap: CA$35.146m
  • Shares outstanding: 53.25m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHXTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1996
PHXH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1996
7PXBST (Boerse-Stuttgart)YesCommon SharesDEEURSep 1996

Biography

PHX Energy Services Corp., through its subsidiaries, 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, and Albania. 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. In addition, it provides performance drilling motor rental, survey management, gyro surveying, and streaming services; and Web-based remote electronic drilling recorder technology and services. The company was formerly known as Phoenix Technology Income Fund and changed its name to PHX Energy Services Corp. PHX Energy Services Corp. was founded in 1995 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:14
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.