PHX Energy Services (PHX) AI Stock Analysis

• Market Cap: C$371.86M
• Dividend Yield: 9.78%
• Average Volume (3M): 126.20K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.00
• Revenue Growth: 4.69%
• EPS Growth: -34.62%
• Country: CA
• Employees: 924
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.44
• Shares Outstanding: 45,460,070
• 10 Day Avg. Volume: 149,844
• 30 Day Avg. Volume: 126,199
• PEG Ratio: 0.10
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.33
• 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: 22.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: C$9.50 ▲(16.14%Upside)

PHX Energy Services scores well due to strong financial performance, attractive valuation, and positive corporate events. The company's consistent revenue growth and solid profitability are complemented by a low P/E ratio and high dividend yield, indicating undervaluation. Technical analysis supports a positive outlook, with the corporate events reinforcing investor confidence and strategic direction.

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 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 demonstrates strong financial performance with consistent revenue growth and profitability. The income statement reflects efficient cost management despite some challenges in operational efficiency. The balance sheet is stable with favorable leverage, and cash flow generation is robust.

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
EBITDA	122.28M	123.05M	150.08M	72.88M	58.69M	26.97M
Net Income	57.33M	54.62M	98.58M	44.31M	22.72M	-6.88M
Balance Sheet
Total Assets	450.04M	423.29M	385.49M	375.22M	262.49M	216.54M
Cash, Cash Equivalents and Short-Term Investments	13.97M	14.16M	16.43M	18.25M	24.83M	25.75M
Total Debt	60.65M	52.18M	44.77M	62.41M	35.87M	39.10M
Total Liabilities	216.46M	201.08M	175.53M	198.35M	128.06M	84.51M
Stockholders Equity	233.58M	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: 8.18
• 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 8.18 is below the 20-day moving average (MA) of 8.30, above the 50-day MA of 7.97, and below the 200-day MA of 8.50, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.45 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	81 Outperform	C$371.86M	6.56	25.15%	9.78%	4.69%	-34.62%
ACX	80 Outperform	C$151.75M	2.94	24.63%	―	-5.05%	147.92%
AKT.A	73 Outperform	C$93.81M	4.99	11.11%	―	2.57%	63.53%
CFW	69 Neutral	C$304.91M	16.15	3.00%	―	-5.50%	-88.55%
Sector *	67 Neutral	$14.94B	9.78	6.38%	5.19%	4.13%	-66.99%
ESI	62 Neutral	C$408.19M	14.37	-1.17%	―	-2.85%	-144.20%
WRG	54 Neutral	C$76.65M	―	-2.16%	―	6.43%	35.87%

PHX Energy Services Corporate Events

PHX Energy Services Declares Quarterly Dividend

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.

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.