PHX Energy Services (PHX) AI Stock Analysis

• Market Cap: C$359.44M
• Dividend Yield: 9.84%
• Average Volume (3M): 97.84K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.99
• Revenue Growth: 4.69%
• EPS Growth: -34.62%
• Country: CA
• Employees: 924
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.44
• Shares Outstanding: 45,556,770
• 10 Day Avg. Volume: 152,160
• 30 Day Avg. Volume: 97,843
• PEG Ratio: 1.09
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.19
• 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$10.00
• Price Target Upside: 23.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: C$9.00 ▲(10.84%Upside)

PHX Energy Services has a solid overall stock score driven primarily by strong financial performance and attractive valuation metrics. Positive corporate developments further enhance the company's outlook. However, neutral technical analysis suggests a cautious approach in the short term.

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 approximately 13% quarter over quarter, delivering the strongest fourth quarter in PHX's history.

Shareholder Returns

The company plans to return approximately 70% of excess free cash flow to shareholders, which represents one of the highest levels in the coverage group.

Negative Factors

Market Competition

PHX continues to focus on increased RSS work, which garners higher day rates, indicating potential pressure from competitors.

PHX Energy Services Business Overview & Revenue Model

Company Description

PHX Energy Services Corp. (PHX) is a leading provider of directional drilling technology and services, predominantly operating in the oil and natural gas sectors. The company specializes in offering high-performance drilling solutions, including advanced measurement while drilling (MWD) and logging while drilling (LWD) technologies, to optimize drilling efficiency and accuracy. PHX Energy Services is committed to delivering innovative tools and services that enhance the drilling process, reduce operational risks, and improve resource extraction outcomes for its clients across North America and internationally.

How the Company Makes Money

PHX Energy Services generates revenue primarily through the provision of directional drilling services and the sale or rental of its specialized drilling technologies and equipment. The company earns money by contracting its services to oil and gas exploration and production companies, who require precise and efficient drilling solutions to access hydrocarbon reserves. PHX Energy Services' revenue streams are driven by the demand for drilling activities, which is influenced by factors such as oil and gas prices, exploration budgets, and industry activity levels. Additionally, the company may engage in partnerships or collaborations with other technology providers or service companies to enhance its service offerings and market reach, thereby contributing to its revenue.

PHX Energy Services Financial Statement Overview

Summary

PHX Energy Services maintains a strong financial standing with consistent revenue growth and solid profit margins. The balance sheet is stable with manageable leverage, although operational efficiency has faced some challenges. Cash flow generation is robust, supporting the company's operations and growth opportunities.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
687.24M	659.66M	656.34M	535.74M	349.92M	233.73M
	Gross Profit
127.70M	124.49M	150.10M	109.64M	71.65M	32.04M
	EBIT
55.38M	50.86M	75.98M	37.53M	20.99M	3.24M
	EBITDA
122.28M	123.05M	150.08M	72.88M	58.69M	26.97M
	Net Income Common Stockholders
57.33M	54.62M	98.58M	44.31M	22.72M	-6.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.53M	14.16M	16.43M	18.25M	24.83M	25.75M
	Total Assets
247.69M	423.29M	385.49M	375.22M	262.49M	216.54M
	Total Debt
21.70M	52.18M	44.77M	62.41M	35.87M	39.10M
	Net Debt
17.17M	38.02M	28.34M	44.16M	11.04M	13.35M
	Total Liabilities
67.54M	201.08M	175.53M	198.35M	128.06M	84.51M
	Stockholders Equity
180.16M	222.21M	209.97M	176.88M	134.43M	132.03M
Cash Flow		Free Cash Flow
12.45M	11.39M	31.11M	-37.70M	8.27M	42.23M
	Operating Cash Flow
96.65M	96.90M	96.72M	37.08M	45.43M	67.91M
	Investing Cash Flow
-54.84M	-49.16M	-20.26M	-47.39M	-23.63M	-19.10M
	Financing Cash Flow
-42.05M	-51.11M	-77.95M	2.71M	-22.72M	-33.65M

PHX Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 8.12 is above the 20-day moving average (MA) of 7.90, above the 50-day MA of 8.09, and below the 200-day MA of 8.82, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 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
PHX	79 Outperform	C$359.44M	6.33	25.15%	9.84%	4.69%	-34.62%
ACX	75 Outperform	C$164.40M	3.18	24.63%	―	-5.05%	147.92%
AKT.A	66 Neutral	C$78.31M	4.15	11.11%	―	2.57%	63.53%
WRG	60 Neutral	C$72.59M	―	-2.16%	―	6.43%	35.87%
Sector *	57 Neutral	$7.06B	3.04	-3.49%	5.80%	0.53%	-50.39%
ESI	55 Neutral	C$360.91M	14.37	-1.17%	―	-2.85%	-144.20%
CFW	54 Neutral	C$283.44M	15.59	3.00%	―	-5.50%	-88.55%

PHX Energy Services Corporate Events

PHX Energy Announces Successful Election of Directors at Annual Meeting

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.

PHX Energy Services Achieves Record Revenue and Strong Profitability in Q1 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.

PHX Energy Services Declares Quarterly Dividend

PHX Energy Services Corp. has announced a quarterly cash dividend of $0.20 per common share, payable on April 15, 2025, to shareholders of record as of March 31, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and underscores its stable financial position within the oil and natural gas services industry.