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Pason Systems

TSX:PSI
Snowflake Description

Flawless balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PSI
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Pason Systems Inc. provides instrumentation and data management systems for drilling rigs. The last earnings update was 21 days ago. More info.


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PSI Share Price and Events
7 Day Returns
2.6%
TSX:PSI
1.8%
CA Energy Services
0.9%
CA Market
1 Year Returns
13.7%
TSX:PSI
-15.6%
CA Energy Services
1.2%
CA Market
PSI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pason Systems (PSI) 2.6% 0.8% 13% 13.7% 21.5% -25.5%
CA Energy Services 1.8% 2.3% 17.7% -15.6% -4.1% -61.8%
CA Market 0.9% 2.3% 12.4% 1.2% 16.1% 5.9%
1 Year Return vs Industry and Market
  • PSI outperformed the Energy Services industry which returned -15.6% over the past year.
  • PSI outperformed the Market in Canada which returned 1.2% over the past year.
Price Volatility
PSI
Industry
5yr Volatility vs Market

PSI Value

 Is Pason Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Pason Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pason Systems.

TSX:PSI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:PSI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.157 (1 + (1- 26.5%) (0%))
1.105
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.105 * 5.96%)
8.53%

Discounted Cash Flow Calculation for TSX:PSI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pason Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:PSI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.53%)
2019 68.15 Analyst x2 62.79
2020 134.00 Analyst x1 113.76
2021 153.28 Est @ 14.39% 119.89
2022 169.61 Est @ 10.65% 122.24
2023 183.25 Est @ 8.04% 121.68
2024 194.64 Est @ 6.21% 119.08
2025 204.24 Est @ 4.93% 115.13
2026 212.49 Est @ 4.04% 110.36
2027 219.73 Est @ 3.41% 105.15
2028 226.26 Est @ 2.97% 99.77
Present value of next 10 years cash flows CA$1,089.86
TSX:PSI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$226.26 × (1 + 1.95%) ÷ (8.53% – 1.95%)
CA$3,502.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$3,502.23 ÷ (1 + 8.53%)10
CA$1,544.24
TSX:PSI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,089.86 + CA$1,544.24
CA$2,634.09
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2,634.09 / 85.85
CA$30.68
TSX:PSI Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$30.68
Current discount Discount to share price of CA$20.58
= -1 x (CA$20.58 - CA$30.68) / CA$30.68
32.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Pason Systems is available for.
Intrinsic value
33%
Share price is CA$20.58 vs Future cash flow value of CA$30.68
Current Discount Checks
For Pason Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Pason Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Pason Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pason Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pason Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:PSI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$0.74
TSX:PSI Share Price ** TSX (2019-03-19) in CAD CA$20.58
Canada Energy Services Industry PE Ratio Median Figure of 14 Publicly-Listed Energy Services Companies 17.71x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pason Systems.

TSX:PSI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:PSI Share Price ÷ EPS (both in CAD)

= 20.58 ÷ 0.74

27.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pason Systems is overvalued based on earnings compared to the CA Energy Services industry average.
  • Pason Systems is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Pason Systems's expected growth come at a high price?
Raw Data
TSX:PSI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
6.8%per year
Canada Energy Services Industry PEG Ratio Median Figure of 11 Publicly-Listed Energy Services Companies 0.93x
Canada Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:PSI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.91x ÷ 6.8%

4.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pason Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Pason Systems's assets?
Raw Data
TSX:PSI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$4.50
TSX:PSI Share Price * TSX (2019-03-19) in CAD CA$20.58
Canada Energy Services Industry PB Ratio Median Figure of 42 Publicly-Listed Energy Services Companies 0.91x
Canada Market PB Ratio Median Figure of 2,347 Publicly-Listed Companies 1.56x
TSX:PSI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:PSI Share Price ÷ Book Value per Share (both in CAD)

= 20.58 ÷ 4.50

4.57x

* Primary Listing of Pason Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pason Systems is overvalued based on assets compared to the CA Energy Services industry average.
X
Value checks
We assess Pason Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Pason Systems has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PSI Future Performance

 How is Pason Systems expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pason Systems expected to grow at an attractive rate?
  • Pason Systems's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Pason Systems's earnings growth is positive but not above the Canada market average.
  • Pason Systems's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:PSI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:PSI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 6.8%
TSX:PSI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.7%
Canada Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 40.9%
Canada Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:PSI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:PSI Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 390 1
2020-12-31 342 149 72 5
2019-12-31 309 139 64 5
TSX:PSI Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 306 107 63
2018-09-30 291 100 47
2018-06-30 273 84 30
2018-03-31 260 80 31
2017-12-31 246 86 25
2017-09-30 228 70 8
2017-06-30 202 59 -7
2017-03-31 174 38 -24
2016-12-31 160 20 -42
2016-09-30 171 30 -30
2016-06-30 201 42 -42
2016-03-31 232 70 -40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pason Systems's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
  • Pason Systems's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:PSI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Pason Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PSI Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.83 0.94 0.72 2.00
2019-12-31 0.75 0.91 0.58 2.00
TSX:PSI Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 0.74
2018-09-30 0.55
2018-06-30 0.36
2018-03-31 0.36
2017-12-31 0.30
2017-09-30 0.09
2017-06-30 -0.08
2017-03-31 -0.29
2016-12-31 -0.50
2016-09-30 -0.36
2016-06-30 -0.50
2016-03-31 -0.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Pason Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Pason Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pason Systems has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PSI Past Performance

  How has Pason Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pason Systems's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Pason Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Pason Systems's 1-year earnings growth exceeds its 5-year average (149.9% vs -19.1%)
  • Pason Systems's earnings growth has exceeded the CA Energy Services industry average in the past year (149.9% vs 22%).
Earnings and Revenue History
Pason Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pason Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PSI Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 306.39 62.94 28.22 27.00
2018-09-30 290.65 47.24 39.01 25.82
2018-06-30 272.89 30.26 38.76 26.06
2018-03-31 260.41 30.75 37.77 25.70
2017-12-31 245.64 25.19 26.90 25.22
2017-09-30 228.24 7.68 28.66 24.32
2017-06-30 202.30 -6.84 30.12 22.73
2017-03-31 173.68 -24.13 31.68 22.10
2016-12-31 160.45 -41.79 32.67 22.85
2016-09-30 171.46 -30.14 35.36 23.92
2016-06-30 201.29 -41.58 36.92 25.85
2016-03-31 231.56 -39.66 43.19 29.03
2015-12-31 285.15 -14.61 43.91 31.73
2015-09-30 363.52 33.44 22.62 36.08
2015-06-30 429.09 78.46 38.76 37.40
2015-03-31 475.50 105.47 41.66 37.10
2014-12-31 499.27 112.10 60.47 35.43
2014-09-30 468.48 89.18 86.13 31.59
2014-06-30 438.46 71.85 84.83 29.55
2014-03-31 417.00 14.87 83.38 28.38
2013-12-31 403.09 23.66 68.53 27.25
2013-09-30 386.67 -14.34 68.82 27.47
2013-06-30 378.91 -5.73 57.37 26.29
2013-03-31 380.64 40.42 54.85 23.45
2012-12-31 386.51 39.88 59.42 22.47
2012-09-30 405.78 85.29 50.85 20.81
2012-06-30 398.25 96.09 45.01 19.77
2012-03-31 376.56 97.54 38.52 19.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Pason Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Pason Systems used its assets more efficiently than the CA Energy Services industry average last year based on Return on Assets.
  • Pason Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Pason Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pason Systems has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PSI Health

 How is Pason Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pason Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pason Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pason Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Pason Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Pason Systems has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Pason Systems Company Filings, last reported 2 months ago.

TSX:PSI Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 386.08 0.00 203.84
2018-09-30 361.27 0.00 184.49
2018-06-30 359.21 0.00 177.18
2018-03-31 355.51 0.00 162.84
2017-12-31 347.49 0.00 154.13
2017-09-30 350.31 0.00 159.44
2017-06-30 365.87 0.00 166.52
2017-03-31 379.95 0.00 163.35
2016-12-31 386.65 0.00 146.48
2016-09-30 402.28 0.00 154.60
2016-06-30 418.32 0.00 161.98
2016-03-31 440.42 0.00 176.09
2015-12-31 489.45 0.00 195.85
2015-09-30 496.28 0.00 198.12
2015-06-30 501.81 0.00 195.25
2015-03-31 518.26 0.00 191.79
2014-12-31 483.52 0.00 144.86
2014-09-30 430.50 0.00 151.00
2014-06-30 397.02 0.00 144.58
2014-03-31 391.06 0.00 116.80
2013-12-31 366.47 0.00 78.02
2013-09-30 343.95 0.00 198.15
2013-06-30 351.85 0.00 195.45
2013-03-31 393.51 0.00 168.87
2012-12-31 368.70 0.00 138.25
2012-09-30 402.55 0.00 139.81
2012-06-30 392.80 0.00 138.61
2012-03-31 395.51 0.00 112.38
  • Pason Systems has no debt.
  • Pason Systems has not taken on any debt in the past 5 years.
  • Pason Systems has no debt, it does not need to be covered by operating cash flow.
  • Pason Systems has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Pason Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pason Systems has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PSI Dividends

 What is Pason Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.5%
Current annual income from Pason Systems dividends. Estimated to be 3.5% next year.
If you bought CA$2,000 of Pason Systems shares you are expected to receive CA$70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Pason Systems's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • Pason Systems's dividend is below the markets top 25% of dividend payers in Canada (5.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:PSI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 3.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:PSI Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.72 2.00
2019-12-31 0.72 3.00
TSX:PSI Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.720 3.570
2018-08-08 0.720 3.570
2018-05-02 0.680 3.330
2018-02-27 0.680 3.770
2017-11-07 0.680 3.766
2017-08-09 0.680 3.750
2017-05-02 0.680 3.566
2017-02-22 0.680 3.604
2016-11-09 0.680 3.700
2016-08-10 0.680 4.003
2016-05-10 0.680 3.921
2015-11-04 0.680 3.843
2015-08-11 0.680 3.542
2015-05-05 0.680 3.221
2015-02-26 0.680 3.335
2014-11-13 0.680 3.303
2014-08-07 0.680 2.244
2014-08-06 0.680 2.262
2014-05-06 0.600 2.021
2014-02-27 0.600 2.079
2013-11-04 0.560 2.374
2013-08-02 0.520 2.418
2013-05-02 0.520 2.831
2013-02-22 0.520 3.070
2013-02-21 0.520 2.966
2012-11-06 0.480 2.811
2012-05-02 0.440 2.923
2011-11-04 0.400 3.032
2011-05-04 0.360 2.603
2010-11-02 0.340 2.341
2010-05-04 0.320 2.774
2009-11-04 0.280 2.437
2009-05-04 0.240 2.301
2009-03-20 0.240 2.351

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Pason Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Pason Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pason Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pason Systems has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PSI Management

 What is the CEO of Pason Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marcel Kessler
COMPENSATION CA$2,035,719
AGE 51
TENURE AS CEO 7.3 years
CEO Bio

Mr. Marcel Kessler has been the Chief Executive Officer and President of Pason Systems Inc., since November 07, 2011. Mr. Kessler has been a Partner of McKinsey & Company since 2001. Mr. Kessler served as the Chief Executive Officer and President at CCR Technologies Ltd. from June 2008 to September 15, 2009. He was Expertise in Executive Experience, Human Resources, International Business, Mergers & Acquisition and Strategic Planning & Leading Growth. He served as the Vice President of Business and Corporate Development at CCR Technologies Ltd. from September 1, 2007 to June 2008. He has been a Director of Pason Systems Inc. since 2012. He is a Director of Pason Systems Corp., Pason US Holdings Corp, Pason Systems USA Corp., Pason Systems US Financial Corp., Petron Industries Inc. and Pason Systems Texas Inc. He served as a Director of CCR Technologies Ltd. from August 11, 2008 to September 15, 2009. Mr. Kessler holds as undergraduate degree in engineering from the Federal Institute of Technology in Zurich and an MBA from London Business School.

CEO Compensation
  • Marcel's compensation has increased by more than 20% in the past year.
  • Marcel's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Pason Systems management team in years:

6.2
Average Tenure
  • The average tenure for the Pason Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Marcel Kessler

TITLE
President
COMPENSATION
CA$2M
AGE
51
TENURE
7.3 yrs

Jon Faber

TITLE
Chief Financial Officer
COMPENSATION
CA$1M
TENURE
5 yrs

Timur Kuru

TITLE
President & GM of United States Business Unit
COMPENSATION
CA$1M
AGE
43
TENURE
2.6 yrs

Russell Smith

TITLE
Vice President of Operations - Offshore & International
COMPENSATION
CA$777K
TENURE
9.2 yrs

Kevin Boston

TITLE
Vice President of Business Development
COMPENSATION
CA$829K
TENURE
9.2 yrs

Melinda Ando

TITLE
General Counsel & Corporate Secretary
TENURE
4.2 yrs

Ben Thomas

TITLE
Director of Support Services - United States Business Unit
COMPENSATION
CA$145K

David Elliott

TITLE
Vice President of Finance
COMPENSATION
CA$445K
TENURE
13.2 yrs

Bryce McLean

TITLE
Vice President of Operations - Canada
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Pason Systems board of directors in years:

6.6
Average Tenure
67
Average Age
  • The tenure for the Pason Systems board of directors is about average.
Board of Directors

Jim Hill

TITLE
Chairman of the Board
COMPENSATION
CA$25K
AGE
67

Marcel Kessler

TITLE
President
COMPENSATION
CA$2M
AGE
51
TENURE
7.2 yrs

Jim Howe

TITLE
Lead Director
COMPENSATION
CA$120K
AGE
68

T. Collins

TITLE
Independent Director
COMPENSATION
CA$136K
AGE
71
TENURE
6.6 yrs

Judi Hess

TITLE
Independent Director
COMPENSATION
CA$122K
AGE
59
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Pason Systems insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
06. Mar 19 Buy Jon Faber Individual 05. Mar 19 05. Mar 19 3,300 CA$20.10 CA$66,330
06. Mar 19 Buy Russell Smith Individual 05. Mar 19 05. Mar 19 500 CA$19.95 CA$9,975
06. Mar 19 Buy Marcel Kessler Individual 06. Mar 19 06. Mar 19 2,350 CA$19.95 CA$46,882
01. Jan 19 Buy Russell Smith Individual 27. Dec 18 27. Dec 18 500 CA$17.30 CA$8,652
14. Dec 18 Buy Jon Faber Individual 14. Dec 18 14. Dec 18 4,000 CA$18.55 CA$74,200
11. Dec 18 Buy Russell Smith Individual 11. Dec 18 11. Dec 18 500 CA$18.97 CA$9,483
11. Dec 18 Buy Marcel Kessler Individual 11. Dec 18 11. Dec 18 2,350 CA$19.60 CA$46,060
11. Dec 18 Buy Marcel Kessler Individual 10. Dec 18 10. Dec 18 3,000 CA$18.85 CA$56,550
07. Dec 18 Buy David Elliott Individual 07. Dec 18 07. Dec 18 1,000 CA$19.26 CA$19,260
06. Dec 18 Buy Kevin Boston Individual 06. Dec 18 06. Dec 18 500 CA$19.29 CA$9,644
06. Dec 18 Buy Marcel Kessler Individual 06. Dec 18 06. Dec 18 7,000 CA$19.35 CA$135,450
30. Nov 18 Buy Chi Lo Individual 30. Nov 18 30. Nov 18 4,300 CA$19.50 CA$83,850
28. Nov 18 Buy Kevin Boston Individual 28. Nov 18 28. Nov 18 1,000 CA$20.07 CA$20,074
22. Nov 18 Sell James Hill Individual 15. Nov 18 21. Nov 18 -500,000 CA$22.13 CA$-10,887,709
18. Nov 18 Buy Marcel Kessler Individual 16. Nov 18 16. Nov 18 1,200 CA$21.50 CA$25,800
17. Oct 18 Buy Jon Faber Individual 28. Sep 18 28. Sep 18 3,000 CA$19.75 CA$59,250
25. Sep 18 Buy Russell Smith Individual 25. Sep 18 25. Sep 18 500 CA$20.21 CA$10,106
27. Jun 18 Sell Ryan van Beurden Individual 27. Jun 18 27. Jun 18 -300 CA$21.75 CA$-6,525
11. May 18 Sell James Hill Individual 10. May 18 11. May 18 -445,900 CA$20.26 CA$-8,963,453
10. May 18 Sell James Hill Individual 07. May 18 09. May 18 -54,100 CA$20.31 CA$-1,092,020
20. Mar 18 Buy Russell Smith Individual 20. Mar 18 20. Mar 18 500 CA$18.21 CA$9,107
X
Management checks
We assess Pason Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pason Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PSI News

Simply Wall St News

How Does Pason Systems Inc. (TSE:PSI) Fare As A Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Pason Systems Inc. … Let's take a look at Pason Systems in more detail.

Simply Wall St -

What Does Pason Systems Inc.'s (TSE:PSI) P/E Ratio Tell You?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Pason Systems has a price to earnings ratio of 27.38, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Can Pason Systems Inc.'s (TSE:PSI) ROE Continue To Surpass The Industry Average?

Our data shows Pason Systems has a return on equity of 13% for the last year. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Worry About Pason Systems Inc.'s (TSE:PSI) CEO Pay?

Marcel Kessler has been the CEO of Pason Systems Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Marcel Kessler's Compensation Compare With Similar Sized Companies?

Simply Wall St -

A Spotlight On Pason Systems Inc.'s (TSE:PSI) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Does Market Volatility Impact Pason Systems Inc.'s (TSE:PSI) Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

How Many Insiders Sold Pason Systems Inc. (TSE:PSI) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Pason Systems Inc. … That means that an insider was selling shares at around the current price of CA$17.56. … In total, Pason Systems insiders sold more than they bought over the last year

Simply Wall St -

Do Institutions Own Pason Systems Inc (TSE:PSI) Shares?

The big shareholder groups in Pason Systems Inc (TSE:PSI) have power over the company. … With a market capitalization of CA$1.8b, Pason Systems is a decent size, so it is probably on the radar of institutional investors. … Check out our latest analysis for Pason Systems

Simply Wall St -

Does Pason Systems Inc's (TSE:PSI) CEO Pay Matter?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Marcel Kessler's Compensation Compare With Similar Sized Companies. … Most shareholders would consider it a positive that Marcel Kessler takes less compensation than the CEOs of most similar size companies, leaving more for shareholders.

Simply Wall St -

Is Pason Systems Inc's (TSE:PSI) 8.4% Better Than Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Pason Systems Inc (TSE:PSI). … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.084 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

PSI Company Info

Description

Pason Systems Inc. provides instrumentation and data management systems for drilling rigs. The company offers Electronic AutoDriller, which maximizes the rate of penetration by monitoring multiple drilling parameters; Electronic Choke Actuator that provides a means of remotely controlling the choke valve; and Electronic Drilling Recorder. It also provides Enhanced Pit Volume Totalizer, a well control system; Gas Analyzer to detect the changes in relative volumes of hydrocarbon gases; Hazardous Gas Alarm System, which detects the presence of combustible gases and provides visible and audible alerts; Pit Volume Totalizer, a control system; Rig Communications that provides remote data communications for drillers; Rig Display, a touch screen computer to access services and applications on and around the rig floor; and SideKick, a rig floor computer that allows for data entry and displays information around the rig. In addition, the company offers abbl Directional Express that allows operations engineers to manage deliverables on multiple wells; DataHub, a Web application that collects, stores, and displays drilling data, reports, and real-time information for remote access; Directional System, an application that enables directional drillers to monitor and manage multiple wells; and Drilling Guidance System that offers real-time guidance. Further, it provides Pason Live, a Web-based data viewer, which provides visualization tools that display real-time drilling data; Tour Sheet Analytics, which delivers insight into the data; WellView Field Solution, a corporate well file that begins at the request to drill and follows through to the well completion; and VERDAZO visual analytics software, as well as training and maintenance services. The company has operations in Canada, the United States, and internationally. The company was founded in 1978 and is headquartered in Calgary, Canada.

Details
Name: Pason Systems Inc.
PSI
Exchange: TSX
Founded: 1978
CA$1,766,699,813
85,845,472
Website: http://www.pason.com
Address: Pason Systems Inc.
6130 Third Street SE,
Calgary,
Alberta, T2H 1K4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX PSI Common Shares The Toronto Stock Exchange CA CAD 21. Nov 1996
OTCPK PSYT.F Common Shares Pink Sheets LLC US USD 21. Nov 1996
DB 3PS Common Shares Deutsche Boerse AG DE EUR 21. Nov 1996
Number of employees
Current staff
Staff numbers
610
Pason Systems employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:41
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/04
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.