Pulse Seismic (TSX:PSD) - Share price, News & Analysis

PSD fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

PSD Stock Overview

Pulse Seismic Inc. acquires, markets, and licenses two-dimensional (2D) and three-dimensional (3D) seismic data for the energy sector in Western Canada.

Rewards

Trading at 91.5% below our estimate of its fair value

Became profitable this year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (CA$113M)

Pulse Seismic Competitors

TGS

OB:TGS

kr17.1b

CGG

ENXTPA:CGG

€682.9m

PGS

OB:PGS

kr3.6b

Price History & Performance

Summary of all time highs, changes and price drops for Pulse Seismic
Historical stock prices
Current Share Price	CA$2.10
52 Week High	CA$2.91
52 Week Low	CA$1.58
Beta	1.36
1 Month Change	-9.87%
3 Month Change	0%
1 Year Change	25.00%
3 Year Change	-7.49%
5 Year Change	-16.00%
Change since IPO	-98.25%

Shareholder Returns

	PSD	CA Energy Services	CA Market
7D	0%	4.0%	0.8%
1Y	25.0%	46.4%	4.8%

Return vs Industry: PSD underperformed the Canadian Energy Services industry which returned 46.4% over the past year.

Return vs Market: PSD exceeded the Canadian Market which returned 4.9% over the past year.

Price Volatility

Is PSD's price volatile compared to industry and market?
PSD volatility
PSD Average Weekly Movement	7.6%
Energy Services Industry Average Movement	8.5%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	17.0%
10% least volatile stocks in CA Market	4.4%

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

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

About the Company

Founded	Employees	CEO	Website
1985	16	Neal Coleman	https://www.pulseseismic.com

Pulse Seismic Inc. acquires, markets, and licenses two-dimensional (2D) and three-dimensional (3D) seismic data for the energy sector in Western Canada. Its data library covers principal areas in Alberta, British Columbia, and Saskatchewan. The company’s seismic data is used by oil and natural gas exploration and development companies.

Pulse Seismic Fundamentals Summary

How do Pulse Seismic's earnings and revenue compare to its market cap?
PSD fundamental statistics
Market Cap	CA$112.84m
Earnings (TTM)	CA$18.96m
Revenue (TTM)	CA$46.18m

6.0x

P/E Ratio

2.4x

P/S Ratio

Is PSD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSD income statement (TTM)
Revenue	CA$46.18m
Cost of Revenue	CA$0
Gross Profit	CA$46.18m
Other Expenses	CA$27.22m
Earnings	CA$18.96m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.35
Gross Margin	100.00%
Net Profit Margin	41.06%
Debt/Equity Ratio	0%

How did PSD perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

7%

Payout Ratio

Valuation

Is Pulse Seismic undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PSD (CA$2.1) is trading below our estimate of fair value (CA$24.75)

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

Price To Earnings Ratio

PE vs Industry: PSD is good value based on its PE Ratio (6x) compared to the Canadian Energy Services industry average (18.7x).

PE vs Market: PSD is good value based on its PE Ratio (6x) compared to the Canadian market (11.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: PSD is overvalued based on its PB Ratio (2.8x) compared to the CA Energy Services industry average (1.1x).

Future Growth

How is Pulse Seismic forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-38.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PSD's revenue is expected to decline over the next 3 years (-38.7% per year).

High Growth Revenue: PSD's revenue is forecast to decline over the next 3 years (-38.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PSD's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Pulse Seismic performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PSD has high quality earnings.

Growing Profit Margin: PSD became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: PSD has become profitable over the past 5 years, growing earnings by 10.2% per year.

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

Earnings vs Industry: PSD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-8%).

Return on Equity

High ROE: PSD's Return on Equity (46.3%) is considered outstanding.

Financial Health

How is Pulse Seismic's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PSD's short term assets (CA$8.0M) exceed its short term liabilities (CA$1.1M).

Long Term Liabilities: PSD's short term assets (CA$8.0M) exceed its long term liabilities (CA$876.0K).

Debt to Equity History and Analysis

Debt Level: PSD is debt free.

Reducing Debt: PSD had no debt 5 years ago.

Debt Coverage: PSD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PSD has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Pulse Seismic current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PSD's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: PSD's dividend (2.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).

Stability and Growth of Payments

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

Growing Dividend: PSD's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.1%), PSD's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.2%), PSD's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

12.2yrs

Average management tenure

CEO

Neal Coleman

9.5yrs

Tenure

CA$670,766

Compensation

Mr. Neal Coleman has been the Chief Executive Officer and President of Pulse Seismic Inc. (formerly known as Pulse Data Inc.) since November 1, 2012. Mr. Coleman has experience in seismic data library busi...

CEO Compensation Analysis

Compensation vs Market: Neal's total compensation ($USD522.46K) is above average for companies of similar size in the Canadian market ($USD168.65K).

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

Leadership Team

Experienced Management: PSD's management team is seasoned and experienced (12.2 years average tenure).

Board Members

Experienced Board: PSD's board of directors are considered experienced (4.2 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31