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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)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
C$13.00
▲(18.29% Upside)
Action:Upgraded
Date:08/10/26
The score is driven by attractive valuation and income (moderate P/E and high dividend yield) and supportive price momentum (trading above key moving averages with a positive MACD). These positives are tempered by weaker recent financial performance, particularly deteriorating cash flow conversion with free cash flow turning negative and profitability cooling from prior peaks.
Positive Factors
Niche Directional Drilling Expertise
PHX's specialization in directional drilling for horizontal and complex wells creates a durable technical moat. Skilled crews, downhole tooling and operational know-how support repeat business, higher utilization in complex jobs and stickier customer relationships across basin cycles.
Negative Factors
Negative Free Cash Flow
TTM free cash flow of about -$5.7M signals that earnings are not producing surplus cash after investments or working capital needs. Persistent negative FCF erodes internal funding for capex, dividends or debt reduction and increases reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Niche Directional Drilling Expertise
PHX's specialization in directional drilling for horizontal and complex wells creates a durable technical moat. Skilled crews, downhole tooling and operational know-how support repeat business, higher utilization in complex jobs and stickier customer relationships across basin cycles.
Read all positive factors

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

PHX Energy Services Business Overview & Revenue Model

Company Description
PHX Energy Services Corp. provides horizontal and directional drilling services, rents performance drilling motors, and sells motor equipment and parts to oil and natural gas exploration and development companies in Canada, the United States, the ...
How the Company Makes Money
PHX primarily makes money by delivering directional drilling services on a fee-for-service basis to oil and gas operators during the drilling phase of a well. Revenue is generally generated from (a) day-rate and/or footage-based charges for direct...

PHX Energy Services Financial Statement Overview

Summary
Profitable operations and moderate leverage support the profile, but financial quality has weakened: margins and operating profitability are down from prior highs and free cash flow has turned negative despite positive earnings, indicating weaker cash conversion and higher funding risk if it persists.
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
45
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue711.02M709.60M659.66M656.34M535.74M349.92M
Gross Profit100.06M110.96M124.49M150.10M109.64M71.65M
EBITDA100.49M101.27M123.05M150.08M72.88M58.20M
Net Income45.93M54.71M54.62M98.58M44.31M22.72M
Balance Sheet
Total Assets474.80M443.16M423.29M385.49M375.22M262.49M
Cash, Cash Equivalents and Short-Term Investments20.61M29.11M14.16M16.43M18.25M24.83M
Total Debt94.29M66.93M52.18M44.77M62.41M35.87M
Total Liabilities243.70M214.12M201.08M175.53M198.35M128.06M
Stockholders Equity231.10M229.04M222.21M209.97M176.88M134.43M
Cash Flow
Free Cash Flow-5.68M863.00K11.39M31.11M-37.70M8.27M
Operating Cash Flow64.73M73.16M96.90M96.72M37.08M45.43M
Investing Cash Flow-30.40M-34.16M-49.16M-20.26M-47.39M-23.63M
Financing Cash Flow-24.97M-23.41M-51.11M-77.95M2.71M-22.72M

PHX Energy Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.99
Price Trends
50DMA
10.74
Positive
100DMA
11.33
Positive
200DMA
9.62
Positive
Market Momentum
MACD
0.18
Negative
RSI
68.41
Neutral
STOCH
88.26
Negative
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 10.99 is above the 20-day moving average (MA) of 10.85, above the 50-day MA of 10.74, and above the 200-day MA of 9.62, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
C$535.90M11.4819.38%9.10%1.48%-12.96%
66
Neutral
C$673.29M14.346.49%-17.68%123.13%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
57
Neutral
C$236.45M15.955.29%-10.73%-75.09%
52
Neutral
C$591.77M-14.69-4.13%-1.48%-6.74%
51
Neutral
C$116.79M-4.48-9.63%-10.90%-349.06%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PHX
PHX Energy Services
11.71
5.01
74.83%
TSE:ACX
ACT Energy Technologies
6.12
1.62
36.00%
TSE:CFW
Calfrac Well Services
6.67
3.07
85.48%
TSE:ESI
Ensign Energy Services
3.21
1.08
50.70%
TSE:WRG
Western Energy Services
3.45
1.39
67.48%
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: Aug 10, 2026