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Attractive stocks have exceptional fundamentals. In the case of Pason Systems Inc. (TSE:PSI), there’s is a financially-robust , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Pason Systems here.
Flawless balance sheet with proven track record and pays a dividend
PSI delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did PSI outperformed its past performance, its growth also surpassed the Energy Services industry expansion, which generated a 28% earnings growth. This is an notable feat for the company. PSI’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that PSI manages its cash and cost levels well, which is a key determinant of the company’s health. PSI currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. PSI has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For those seeking income streams from their portfolio, PSI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.8%.
Next Steps:
For Pason Systems, I’ve compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for PSI’s future growth? Take a look at our free research report of analyst consensus for PSI’s outlook.
- Valuation: What is PSI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PSI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PSI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.