Pulse Seismic (PSD) AI Stock Analysis

• Market Cap: C$196.93M
• Dividend Yield: 14.94%
• Average Volume (3M): 33.58K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.13
• Revenue Growth: 44.44%
• EPS Growth: 110.60%
• Country: CA
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.03
• Shares Outstanding: 50,755,060
• 10 Day Avg. Volume: 34,493
• 30 Day Avg. Volume: 33,583
• PEG Ratio: -0.47
• Price to Book (P/B): 6.72
• Price to Sales (P/S): 5.26
• P/FCF Ratio: 8.83
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 84 Outperform
• Price Target: C$4.50 ▲(30.43% Upside)

The score is driven primarily by strong financial performance (high profitability, robust cash generation, and extremely low leverage) and attractive valuation (low P/E and very high dividend yield). Technicals are supportive but somewhat stretched, with elevated RSI/Stoch suggesting reduced near-term momentum upside.

Positive Factors

Conservative balance sheet

Extremely low leverage materially reduces financial risk and preserves strategic flexibility during industry downturns. For a cyclical seismic data business, minimal debt supports continued funding of multi-client programs, opportunistic acquisitions of seismic assets, and stable operations across commodity cycles.

Strong cash generation

Robust operating and free cash flow, roughly matching net income, indicate the business converts profits into real cash. That supports reinvestment into datasets, funds multi-client acquisition models, sustains dividends, and cushions the firm against episodic revenue swings common in E&P services.

High margins and revenue rebound

Very high gross and net margins reflect the licensing model's low incremental costs after data acquisition. Strong recent revenue rebound demonstrates operating leverage: once datasets are created, additional licenses boost margins and cash flow, making returns durable when exploration activity recovers.

Negative Factors

Earnings and cash volatility

Historical swings (loss years in 2020 and 2022; softer 2024) show revenue and FCF fluctuate with E&P activity. That cyclicality limits predictability of earnings, complicates capacity planning and capital allocation, and increases the risk that short windows of weakness can pressure returns.

Geographic and end-market concentration

Concentration in Western Canada and reliance on oil & gas explorers concentrates demand risk: regional downturns or shifts in capital spending patterns materially reduce licensing opportunities. Limited geographic diversification raises exposure to local regulatory, commodity and activity cycles.

Small scale and limited diversification

Very small workforce and narrow operational footprint constrain the firm's ability to diversify services, scale new offerings, or rapidly enter other geographies. Dependence on a few clients and sectors reduces resilience versus larger multi-service geophysical competitors.

Pulse Seismic Business Overview & Revenue Model

Company Description

Pulse Seismic Inc. acquires, markets, and licenses two-dimensional (2D) and three-dimensional (3D) seismic data for the energy sector in Western Canada. Its data library covers principal areas in Alberta, British Columbia, and Saskatchewan. The company's seismic data is used by oil and natural gas exploration and development companies. It owns and manages licensable seismic data library that consists of approximately 65,310 net square kilometers of 3D seismic; and 8,29,207 linear kilometers of 2D seismic data. The company was formerly known as Pulse Data Inc. and changed its name to Pulse Seismic Inc. in May 2009. Pulse Seismic Inc. was incorporated in 1985 and is headquartered in Calgary, Canada.

How the Company Makes Money

Pulse Seismic generates revenue primarily through the sale of seismic data and services to oil and gas companies. Its revenue model includes direct sales of proprietary seismic data, which can be licensed on a multi-client or exclusive basis. Additionally, the company earns income from custom seismic survey contracts, where it provides tailored services to clients based on specific project needs. Partnerships with major oil and gas operators enhance its data library and create additional revenue opportunities through data sharing agreements. The cyclical nature of the oil and gas industry impacts income levels, with revenues often correlating with exploration and production activities.

Pulse Seismic Financial Statement Overview

Summary

Strong TTM rebound with sharply higher revenue and very high profitability, supported by an extremely low-leverage balance sheet and strong free cash flow. Key risk is notable historical volatility in earnings and cash flow, consistent with a cyclical profile.

Income Statement

TTM (Trailing-Twelve-Months) results show a strong rebound with revenue up sharply (about +140% vs the prior annual period) and very high profitability (roughly 82% gross margin and ~44% net margin). Margins and earnings are also well above the 2024 level, signaling strong operating leverage. The key weakness is volatility: results have swung materially over time (loss years in 2020 and 2022, softer 2024), which is important for forecasting durability.

Balance Sheet

The balance sheet is conservatively positioned with extremely low leverage (debt-to-equity ~0.01 in TTM and similarly low in recent years), which reduces financial risk and improves flexibility. Returns on equity are very strong in TTM, reflecting the current earnings surge. The main watch-out is that equity and asset levels have moved around meaningfully over the period, consistent with a business that can be cyclical.

Cash Flow

Cash generation is strong in TTM (operating cash flow and free cash flow both ~C$32.8M) and cash conversion is excellent, with free cash flow roughly matching net income. Cash flow also appears resilient even in weaker earnings periods historically. The notable weakness is variability in free cash flow growth (down in TTM and 2024 after strong growth in 2021 and 2023), reinforcing the company’s cyclicality.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.07M	23.38M	39.13M	9.57M	49.15M	11.35M
Gross Profit	41.04M	14.20M	29.94M	-505.00K	38.53M	-666.00K
EBITDA	40.26M	15.97M	30.98M	2.14M	42.36M	7.25M
Net Income	22.21M	3.39M	15.01M	-7.91M	21.51M	-6.79M
Balance Sheet
Total Assets	22.80M	21.52M	41.25M	35.22M	52.90M	56.74M
Cash, Cash Equivalents and Short-Term Investments	16.07M	8.72M	15.95M	5.82M	-500.00K	-1.36M
Total Debt	173.00K	204.00K	269.00K	21.00K	2.77M	29.07M
Total Liabilities	6.16M	3.22M	15.59M	1.73M	8.76M	31.48M
Stockholders Equity	16.64M	18.30M	25.66M	33.50M	44.14M	25.27M
Cash Flow
Free Cash Flow	32.76M	13.93M	23.50M	11.98M	29.44M	3.42M
Operating Cash Flow	32.76M	14.20M	23.52M	11.99M	29.80M	3.81M
Investing Cash Flow	0.00	-270.00K	-28.00K	-12.00K	-358.00K	-390.00K
Financing Cash Flow	-24.11M	-21.15M	-13.37M	-6.16M	-29.44M	-4.78M

Pulse Seismic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSD, the sentiment is Positive. The current price of 3.45 is below the 20-day moving average (MA) of 3.71, above the 50-day MA of 3.34, and above the 200-day MA of 3.19, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 69.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PSD.

Pulse Seismic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSD	84 Outperform	C$196.93M	8.87	123.45%	14.94%	44.44%	110.60%
SHLE	70 Outperform	C$218.31M	8.91	11.94%	―	-0.39%	-86.01%
MCB	67 Neutral	C$86.46M	12.26	11.40%	3.26%	15.91%	-2.15%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
E	64 Neutral	C$106.92M	27.14	5.09%	―	-7.13%	-60.41%
HWO	49 Neutral	C$10.79M	-48.52	-0.80%	―	-75.46%	-100.66%
SFD	44 Neutral	C$39.22M	-5.98	-51.99%	―	418.77%	56.71%