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PSI

Pason Systems TSX:PSI Stock Report

Last Price

CA$14.24

Market Cap

CA$1.2b

7D

0%

1Y

59.8%

Updated

27 Jun, 2022

Data

Company Financials +
PSI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends3/6

PSI Stock Overview

Pason Systems Inc., an energy services and technology company, provides data management systems for drilling rigs in Canada, the United States, and internationally.

Pason Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pason Systems
Historical stock prices
Current Share PriceCA$14.24
52 Week HighCA$17.12
52 Week LowCA$7.50
Beta1.82
1 Month Change-14.06%
3 Month Change-9.42%
1 Year Change59.82%
3 Year Change-24.97%
5 Year Change-26.37%
Change since IPO2,897.90%

Recent News & Updates

Jun 13
An Intrinsic Calculation For Pason Systems Inc. (TSE:PSI) Suggests It's 38% Undervalued

An Intrinsic Calculation For Pason Systems Inc. (TSE:PSI) Suggests It's 38% Undervalued

How far off is Pason Systems Inc. ( TSE:PSI ) from its intrinsic value? Using the most recent financial data, we'll...

Apr 23
Returns Are Gaining Momentum At Pason Systems (TSE:PSI)

Returns Are Gaining Momentum At Pason Systems (TSE:PSI)

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

PSICA Energy ServicesCA Market
7D0%-1.7%0.3%
1Y59.8%-0.02%-4.0%

Return vs Industry: PSI exceeded the Canadian Energy Services industry which returned -0% over the past year.

Return vs Market: PSI exceeded the Canadian Market which returned -4% over the past year.

Price Volatility

Is PSI's price volatile compared to industry and market?
PSI volatility
PSI Average Weekly Movement6.1%
Energy Services Industry Average Movement8.0%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: PSI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PSI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1978n/aJon Faberhttps://www.pason.com

Pason Systems Inc., an energy services and technology company, provides data management systems for drilling rigs in Canada, the United States, and internationally. The company offers Electronic Drilling Recorder, which monitors and records drilling operations around the rig; DataHub for storing data and information collected from the rig for on-demand retrieval; DataLink service provides direct connection interfaces for IT systems and analytics tools; Pason Live for monitoring rig operations in real-time using desktop computers or mobile devices; and daily and end-of-well KPI reports provide visual statistics on rig performance. It also provides Drilling intelligence to suggest drilling parameters, detect disfunction, and send event alerts to onsite personnel and remote engineers in real time; and Drilling automation, a reality across rig platforms.

Pason Systems Fundamentals Summary

How do Pason Systems's earnings and revenue compare to its market cap?
PSI fundamental statistics
Market CapCA$1.17b
Earnings (TTM)CA$48.10m
Revenue (TTM)CA$238.60m

24.3x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSI income statement (TTM)
RevenueCA$238.60m
Cost of RevenueCA$97.05m
Gross ProfitCA$141.55m
Other ExpensesCA$93.45m
EarningsCA$48.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)0.59
Gross Margin59.33%
Net Profit Margin20.16%
Debt/Equity Ratio0%

How did PSI perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

39%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PSI 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/Revenue4.2x
Enterprise Value/EBITDA13.3x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

PSI PE Ratio vs Peers
The above table shows the PE ratio for PSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.3x
TCW Trican Well Service
38x42.1%CA$902.2m
CEU CES Energy Solutions
11.1x35.9%CA$608.0m
TOT Total Energy Services
58.4x52.7%CA$332.3m
CMG Computer Modelling Group
21.2x11.2%CA$390.4m
PSI Pason Systems
24.3x32.0%CA$1.2b

Price-To-Earnings vs Peers: PSI is good value based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (32.2x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: PSI is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the Canadian Energy Services industry average (18x)


Price to Earnings Ratio vs Fair Ratio

What is PSI'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.

PSI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.3x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: PSI is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).


Share Price vs Fair Value

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

Below Fair Value: PSI (CA$14.24) is trading below our estimate of fair value (CA$26.15)

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


Price to Earnings Growth Ratio

PEG Ratio: PSI is good value based on its PEG Ratio (0.8x)


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSI's forecast earnings growth (32% per year) is above the savings rate (1.6%).

Earnings vs Market: PSI's earnings (32% per year) are forecast to grow faster than the Canadian market (8.2% per year).

High Growth Earnings: PSI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PSI's revenue (16.8% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: PSI's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Discover growth companies

Past Performance

How has Pason Systems performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PSI has high quality earnings.

Growing Profit Margin: PSI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PSI has become profitable over the past 5 years, growing earnings by 6.9% per year.

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

Earnings vs Industry: PSI 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: PSI's Return on Equity (14.5%) is considered low.


Discover strong past performing companies

Financial Health

How is Pason Systems'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: PSI's short term assets (CA$238.3M) exceed its short term liabilities (CA$56.0M).

Long Term Liabilities: PSI's short term assets (CA$238.3M) exceed its long term liabilities (CA$14.3M).


Debt to Equity History and Analysis

Debt Level: PSI is debt free.

Reducing Debt: PSI has not had any debt for past 5 years.

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

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


Balance Sheet


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Dividend

What is Pason Systems's 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


2.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PSI's dividend (2.25%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: PSI's dividend (2.25%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.5%), PSI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.2%), PSI's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Jon Faber (42 yo)

1.67yrs

Tenure

CA$1,968,322

Compensation

Mr. Jon Faber, CFA, CBV, has been Non-Independent Director, President and Chief Executive Officer at Pason Systems Inc. since October 01, 2020. Mr. Faber was the Chief Financial Officer of Pason Systems In...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD1.53M) is about average for companies of similar size in the Canadian market ($USD1.57M).

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


Leadership Team

Experienced Management: PSI's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: PSI's board of directors are considered experienced (8.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Pason Systems Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Pason Systems Inc.
  • Ticker: PSI
  • Exchange: TSX
  • Founded: 1978
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: CA$1.170b
  • Shares outstanding: 82.17m
  • Website: https://www.pason.com

Number of Employees


Location

  • Pason Systems Inc.
  • 6130 Third Street SE
  • Calgary
  • Alberta
  • T2H 1K4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 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.