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PHX Energy Services (TSE:PHX)
TSX:PHX
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PHX Energy Services (PHX) AI Stock Analysis

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TSE:PHX

PHX Energy Services

(TSX:PHX)

Rating:79Outperform
Price Target:
C$9.50
▲(15.57%Upside)
PHX Energy Services receives a strong overall score of 79, driven primarily by its solid financial performance and attractive valuation. The company exhibits strong revenue growth and profitability, bolstered by a compelling dividend yield and low P/E ratio. Despite neutral technical indicators, recent positive corporate events further enhance its investment appeal.
Positive Factors
Market Position
Given its differentiated technology offering, solid market share, strong dividend yield, and inexpensive valuation, the shares are deserving.
Revenue Growth
U.S. Revenue of $132 million was up ~13% quarter over quarter, delivering the strongest Q4 in PHX's history.
Shareholder Returns
The company plans to return ~70% of excess free cash flow to shareholders, which represents one of the highest levels in our coverage group.
Negative Factors
Corporate Strategy
PHX continues to focus on increased RSS work, which garners higher day rates.
Revenue Segmentation
In Canada, revenue increased 7% year-over-year to $46 million, a Q4 high for the segment since 2014.

PHX Energy Services (PHX) vs. iShares MSCI Canada ETF (EWC)

PHX Energy Services Business Overview & Revenue Model

Company DescriptionPHX Energy Services Corp. 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, Albania, and the Middle East. 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 survey management, gyro surveying, and directional drilling and motor rentals. 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.
How the Company Makes MoneyPHX Energy Services generates revenue primarily through the provision of directional and horizontal drilling services to oil and gas companies. The company's key revenue streams include service fees charged for its drilling technology solutions, rental fees for drilling equipment, and sales of related products. PHX Energy leverages its expertise and proprietary technologies to offer value-added services, which enable clients to extract resources more effectively and efficiently. Additionally, the company may engage in strategic partnerships or alliances with other industry players to expand its service offerings and market reach. The company's earnings are influenced by factors such as oil and gas market conditions, technological advancements, and customer demand for efficient drilling solutions.

PHX Energy Services Financial Statement Overview

Summary
PHX Energy Services demonstrates a solid financial position with consistent revenue growth and profitability. The company has a strong income statement with solid margins, a stable balance sheet, and healthy cash flow metrics. However, challenges in operational efficiency and asset management slightly dampen the overall financial performance.
Income Statement
82
Very Positive
PHX Energy Services shows strong income statement metrics, with a solid gross profit margin and net profit margin reflecting efficient cost management. Revenue has consistently increased, demonstrating robust growth. However, a decline in EBIT and EBITDA margins in recent periods indicates potential challenges in maintaining operational efficiency.
Balance Sheet
76
Positive
The company's balance sheet is stable, with a favorable debt-to-equity ratio indicating manageable leverage. Return on Equity (ROE) is strong, suggesting effective use of equity to generate profits. However, the equity ratio has shown slight fluctuations, which could indicate potential volatility in asset management.
Cash Flow
79
Positive
Cash flow metrics are healthy, with a positive trend in free cash flow growth, supported by consistent operating cash flow. The operating cash flow to net income ratio is strong, reflecting effective cash conversion. However, fluctuations in free cash flow to net income ratios suggest potential variability in cash generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue659.66M656.34M535.74M349.92M233.73M
Gross Profit124.49M150.10M109.64M71.65M32.04M
EBITDA123.05M150.08M72.88M58.69M26.97M
Net Income54.62M98.58M44.31M22.72M-6.88M
Balance Sheet
Total Assets423.29M385.49M375.22M262.49M216.54M
Cash, Cash Equivalents and Short-Term Investments14.16M16.43M18.25M24.83M25.75M
Total Debt52.18M44.77M62.41M35.87M39.10M
Total Liabilities201.08M175.53M198.35M128.06M84.51M
Stockholders Equity222.21M209.97M176.88M134.43M132.03M
Cash Flow
Free Cash Flow11.39M31.11M-37.70M8.27M42.23M
Operating Cash Flow96.90M96.72M37.08M45.43M67.91M
Investing Cash Flow-49.16M-20.26M-47.39M-23.63M-19.10M
Financing Cash Flow-51.11M-77.95M2.71M-22.72M-33.65M

PHX Energy Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.22
Price Trends
50DMA
8.12
Positive
100DMA
8.04
Positive
200DMA
8.48
Negative
Market Momentum
MACD
0.02
Positive
RSI
50.42
Neutral
STOCH
38.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PHX, the sentiment is Positive. The current price of 8.22 is above the 20-day moving average (MA) of 8.22, above the 50-day MA of 8.12, and below the 200-day MA of 8.48, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 38.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PHX.

PHX Energy Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$158.80M3.0524.63%-5.05%147.92%
79
Outperform
C$373.68M6.5925.15%9.58%4.69%-34.62%
71
Outperform
C$88.09M4.6711.11%2.57%63.53%
69
Neutral
C$302.33M16.633.00%-5.50%-88.55%
65
Neutral
C$417.42M14.37-1.17%-2.85%-144.20%
60
Neutral
£7.41B-2.82-10.36%104.91%-1.03%-98.53%
53
Neutral
C$69.72M-2.16%5.00%22.76%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PHX
PHX Energy Services
8.35
-0.97
-10.41%
TSE:AKT.A
AKITA Drilling Ltd
2.22
0.82
58.57%
TSE:ACX
Cathedral Energy Services
4.84
-1.76
-26.67%
TSE:CFW
Calfrac Well Services
3.52
-0.78
-18.14%
TSE:ESI
Ensign Energy Services
2.26
-0.19
-7.76%
TSE:WRG
Western Energy Services
2.12
-0.66
-23.74%

PHX Energy Services Corporate Events

Dividends
PHX Energy Services Declares Quarterly Dividend
Positive
Jun 13, 2025

PHX Energy Services Corp. has announced a quarterly cash dividend of $0.20 per common share, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This announcement underscores the company’s financial health and commitment to delivering shareholder value, reinforcing its position in the oil and natural gas services industry.

The most recent analyst rating on (TSE:PHX) stock is a Buy with a C$12.00 price target. To see the full list of analyst forecasts on PHX Energy Services stock, see the TSE:PHX Stock Forecast page.

Executive/Board ChangesShareholder Meetings
PHX Energy Announces Successful Election of Directors at Annual Meeting
Positive
May 8, 2025

PHX Energy Services Corp. announced the successful election of seven directors at its annual shareholders’ meeting on May 7, 2025. The election results reflect strong shareholder support for the nominees, which is indicative of confidence in the company’s strategic direction and leadership. This development is likely to reinforce PHX Energy’s market position as a leader in drilling technology and services, potentially benefiting stakeholders through sustained growth and innovation.

DividendsBusiness Operations and StrategyFinancial Disclosures
PHX Energy Services Achieves Record Revenue and Strong Profitability in Q1 2025
Positive
May 6, 2025

PHX Energy Services reported record revenue of $193.7 million for the first quarter of 2025, marking a 17% increase from the previous year. The company’s profitability was driven by growth in high-margin RSS and motor rental revenue streams, particularly in the US and Canada. The US division achieved a record quarterly revenue of $136.1 million, while the Canadian division reported its highest quarterly revenue since 2014. The company declared a dividend of $0.20 per share and announced a $10 million increase in its capital expenditure budget, aiming to expand its RSS fleet and Real Time RSS Communications technology.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025