PHX Energy Services (PHX) AI Stock Analysis

• Market Cap: C$348.35M
• Dividend Yield: 10.38%
• Average Volume (3M): 155.69K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.25
• Revenue Growth: 8.98%
• EPS Growth: -27.41%
• Country: CA
• Employees: 924
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.16
• Shares Outstanding: 45,181,072
• 10 Day Avg. Volume: 127,715
• 30 Day Avg. Volume: 155,688
• PEG Ratio: -0.20
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 38.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.50
• Price Target Upside: 10.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$8.50 ▲(10.25% Upside)

PHX Energy Services scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which are attractive to investors. Financial performance shows potential for growth but highlights liquidity risks due to cash flow challenges. Technical analysis indicates neutral momentum with potential oversold conditions.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for PHX Energy's services, suggesting a solid market position and potential for continued expansion.

Operational Efficiency

High EBIT and EBITDA margins highlight PHX Energy's operational efficiency, which can sustain profitability even amid cost pressures.

Strong Return on Equity

A strong return on equity indicates effective management and the ability to generate profits from shareholders' investments, supporting long-term growth.

Negative Factors

Declining Profit Margins

Declining profit margins suggest increased cost pressures, which could impact profitability if not managed effectively over the long term.

Negative Free Cash Flow

Negative free cash flow poses a risk to liquidity and limits the company's ability to invest in growth opportunities, affecting long-term financial health.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to navigate economic downturns.

PHX Energy Services Business Overview & Revenue Model

Company Description

PHX Energy Services is a leading provider of technology-driven solutions for the oil and gas industry, specializing in directional drilling services and real-time data management. The company operates primarily in North America, offering a range of services that include drilling optimization, wellbore placement, and drilling performance analysis. PHX Energy is committed to enhancing operational efficiency and reducing costs for its clients through innovative technologies and expert engineering support.

How the Company Makes Money

PHX Energy Services generates revenue primarily through the provision of its directional drilling services, which are billed on a per-well basis or through service contracts with oil and gas operators. The company also earns money from the sale of proprietary technology and software solutions that enhance drilling performance and data analysis. Key revenue streams include fees for drilling services, equipment rentals, and maintenance contracts. Additionally, PHX has formed strategic partnerships with major oil and gas companies, which not only bolster its service offerings but also provide a steady stream of business through long-term contracts and collaborations in technology development.

PHX Energy Services Financial Statement Overview

Summary

PHX Energy Services demonstrates strong revenue growth and profitability, with stable margins and a solid balance sheet. However, challenges in cash flow management could impact future investments and financial flexibility.

Income Statement

PHX Energy Services has shown consistent revenue growth, with a TTM revenue growth rate of 1.96% and a strong historical growth trajectory. The gross profit margin has slightly decreased in the TTM period to 18.58% from 18.87% in the previous year, indicating some pressure on cost management. However, the net profit margin has improved to 8.34% in the TTM, reflecting better profitability. EBIT and EBITDA margins are stable, suggesting efficient operations.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.26, indicating a conservative leverage position. Return on equity is strong at 25.77%, showcasing effective use of equity to generate profits. The equity ratio stands at 51.61%, reflecting a solid equity base relative to total assets. Overall, the balance sheet is stable with manageable debt levels.

Cash Flow

PHX Energy Services faces challenges in cash flow management, with a negative free cash flow growth rate of -198.37% in the TTM. The operating cash flow to net income ratio is 0.70, indicating that operating cash flow is not fully covering net income. The free cash flow to net income ratio is low at 0.13, suggesting limited cash flow available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	704.38M	659.66M	656.34M	535.74M	349.92M	233.73M
Gross Profit	112.88M	124.49M	150.10M	109.64M	71.65M	32.04M
EBITDA	123.84M	123.05M	150.08M	72.88M	58.20M	26.97M
Net Income	51.24M	54.62M	98.58M	44.31M	22.72M	-6.88M
Balance Sheet
Total Assets	435.01M	423.29M	385.49M	375.22M	262.49M	216.54M
Cash, Cash Equivalents and Short-Term Investments	7.87M	14.16M	16.43M	18.25M	24.83M	25.75M
Total Debt	74.86M	52.18M	44.77M	62.41M	35.87M	39.10M
Total Liabilities	211.84M	201.08M	175.53M	198.35M	128.06M	84.51M
Stockholders Equity	223.17M	222.21M	209.97M	176.88M	134.43M	132.03M
Cash Flow
Free Cash Flow	-25.79M	11.39M	31.11M	-37.70M	8.27M	42.23M
Operating Cash Flow	59.15M	96.90M	96.72M	37.08M	45.43M	67.91M
Investing Cash Flow	-42.22M	-49.16M	-20.26M	-47.39M	-23.63M	-19.10M
Financing Cash Flow	-23.96M	-51.11M	-77.95M	2.71M	-22.72M	-33.65M

PHX Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.71 is above the 20-day moving average (MA) of 7.59, above the 50-day MA of 7.40, and above the 200-day MA of 7.67, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.58 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKT.A	73 Outperform	C$77.66M	3.53	12.87%	―	24.94%	956.65%
PHX	72 Outperform	C$348.35M	6.80	23.65%	10.38%	8.98%	-27.41%
ACX	72 Outperform	C$180.47M	6.36	11.51%	―	-16.20%	-38.85%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$348.13M	17.95	3.20%	―	-8.13%	-28.00%
ESI	56 Neutral	C$441.64M	-9.91	-3.50%	―	-2.47%	-246.73%
WRG	54 Neutral	C$70.39M	-10.12	-2.38%	―	-0.38%	6.98%

PHX Energy Services Corporate Events

PHX Energy Reports Q3 Revenue Growth Amidst Profitability Challenges

PHX Energy Services reported a slight increase in revenue for the third quarter of 2025, with consolidated revenue reaching $164.3 million, a 2% rise from the previous year. Despite this, the company experienced a decline in profitability due to increased costs associated with a more diverse fleet of RSS and a decrease in high-margin revenue streams. The US division showed resilience with a 3% revenue increase, outperforming the industry trend of declining rig activity. The company also announced an increase in its credit facilities to provide financial flexibility for future opportunities, alongside a renewed Normal Course Issuer Bid to repurchase shares.

PHX Energy Services Declares Quarterly Dividend

PHX Energy Services Corp. has announced a quarterly cash dividend of $0.20 per common share, payable on October 15, 2025, to shareholders of record as of September 30, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and underscores its stable financial position within the oil and natural gas services industry.