Pason Systems (PSI) AI Stock Analysis

• Market Cap: C$955.01M
• Dividend Yield: 4.34%
• Average Volume (3M): 273.22K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.89
• Revenue Growth: 4.60%
• EPS Growth: -44.63%
• Country: CA
• Employees: 678
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.16
• Shares Outstanding: 78,024,010
• 10 Day Avg. Volume: 166,190
• 30 Day Avg. Volume: 273,218
• PEG Ratio: 0.34
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 21.13
• 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$14.50
• Price Target Upside: 18.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$13.50 ▲(10.29% Upside)

Pason Systems' strong financial performance and attractive valuation are key strengths, supported by positive technical indicators. However, challenges in revenue growth and international markets slightly temper the outlook.

Positive Factors

Strong Financial Position

A strong balance sheet with significant cash reserves and no debt enhances financial flexibility and supports strategic initiatives.

Completions Segment Growth

Growth in the Completions segment indicates strong product adoption and market demand, contributing to long-term revenue stability.

Solar and Energy Storage Expansion

Expansion in renewable energy segments diversifies revenue streams and positions Pason for growth in emerging markets.

Negative Factors

Decline in Net Income

A significant decline in net income indicates challenges in maintaining profitability amid industry downturns and higher expenses.

Challenges in International Drilling

Revenue decline in international markets highlights vulnerability to regional operational changes, impacting global growth prospects.

Industry-Wide Challenges

Broad industry declines can constrain growth opportunities and pressure revenue, affecting long-term business performance.

Pason Systems Business Overview & Revenue Model

Company Description

Pason Systems Inc., an energy services and technology company, provides data management systems for drilling rigs in Canada, the United States, and internationally. The company offers Electronic Drilling Recorder, which monitors and records drilling operations around the rig; DataHub for storing data and information collected from the rig for on-demand retrieval; DataLink service provides direct connection interfaces for IT systems and analytics tools; Pason Live for monitoring rig operations in real-time using desktop computers or mobile devices; and daily and end-of-well KPI reports provide visual statistics on rig performance. It also provides Drilling intelligence to suggest drilling parameters, detect disfunction, and send event alerts to onsite personnel and remote engineers in real time; and Drilling automation, a reality across rig platforms. In addition, the company offers Pason Gas Analyzer for real-time gas measurement; a robust system of alarms and sensors to monitor ambient gasses in the atmosphere and in the drilling fluids; and Pason Pit Volume Totalizer to track the volumes, gains, and losses of drilling fluids on location. Further, it provides field support, monitoring, drilling optimization, and office support for data integration. The company serves E&P operators, drilling contractors, and other oilfield service companies. Pason Systems Inc. was founded in 1978 and is headquartered in Calgary, Canada.

How the Company Makes Money

Pason Systems generates revenue primarily through the sale and rental of its proprietary software and hardware solutions to oil and gas companies. The company's revenue model is structured around service contracts, equipment rentals, and software subscriptions, which provide recurring revenue streams. Significant revenue comes from the rental of its drilling data systems, including its flagship Pason DataHub and Pason Rig Data software, which allow clients to monitor and analyze drilling operations in real-time. Additionally, Pason benefits from strategic partnerships with major oil and gas operators and contractors, enhancing its market presence and driving sales. The company's focus on innovation and continuous improvement of its offerings also contributes to increased customer retention and revenue growth.

Pason Systems Financial Statement Overview

Summary

Pason Systems demonstrates strong revenue growth and operational efficiency, with high gross and EBIT margins. The balance sheet is robust with low leverage and a strong equity position. However, the decline in net profit margin and free cash flow growth indicates areas for potential improvement.

Income Statement

Pason Systems shows strong revenue growth with a 13.3% increase in TTM, supported by a high gross profit margin of 86.0%. However, the net profit margin has decreased to 17.0% from 29.3% in the previous annual report, indicating some pressure on net profitability. The EBIT and EBITDA margins remain robust at 23.4% and 36.3%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03, indicating low leverage and financial stability. Return on equity is solid at 14.6%, although it has decreased from the previous year. The equity ratio stands at 83.9%, showcasing a strong equity base relative to total assets.

Cash Flow

Operating cash flow is healthy with a coverage ratio of 1.56, but free cash flow has declined by 5.4% in the TTM. The free cash flow to net income ratio is 0.48, suggesting that cash generation relative to net income could be improved. Overall, cash flow management appears stable but shows room for enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.18M	414.13M	369.31M	335.00M	206.69M	156.64M
Gross Profit	353.71M	361.95M	203.67M	191.72M	93.33M	44.40M
EBITDA	145.84M	149.94M	161.50M	160.26M	80.19M	55.74M
Net Income	62.11M	121.50M	97.54M	107.62M	33.84M	6.57M
Balance Sheet
Total Assets	591.95M	614.61M	487.88M	469.93M	379.94M	361.42M
Cash, Cash Equivalents and Short-Term Investments	75.60M	80.78M	171.77M	172.43M	158.28M	149.28M
Total Debt	16.39M	15.42M	12.99M	5.53M	7.33M	6.17M
Total Liabilities	108.52M	118.94M	86.92M	88.97M	72.16M	56.13M
Stockholders Equity	493.68M	504.41M	408.06M	386.48M	311.48M	307.06M
Cash Flow
Free Cash Flow	62.61M	51.26M	94.12M	69.91M	54.14M	53.42M
Operating Cash Flow	125.42M	123.19M	135.03M	104.41M	65.06M	58.58M
Investing Cash Flow	-59.09M	-155.58M	-13.06M	-92.23M	-27.08M	-12.28M
Financing Cash Flow	-64.30M	-63.37M	-65.82M	-42.06M	-27.05M	-52.20M

Pason Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSI, the sentiment is Positive. The current price of 12.24 is above the 20-day moving average (MA) of 11.94, above the 50-day MA of 11.96, and above the 200-day MA of 11.73, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PSI.

Pason Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFX	80 Outperform	C$2.70B	14.41	12.48%	0.74%	5.92%	―
TCW	78 Outperform	C$1.34B	11.09	18.06%	3.57%	9.24%	6.35%
TOT	78 Outperform	C$584.19M	9.74	10.51%	2.57%	15.58%	47.55%
PSI	74 Outperform	C$955.01M	15.56	12.74%	4.34%	4.60%	-44.63%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$499.45M	21.90	3.20%	―	-8.13%	-28.00%

Pason Systems Corporate Events

Pason Systems Sets Date to Unveil 2025 Year-End Results

Pason Systems Inc. announced that it will release its 2025 fourth-quarter and annual financial results after markets close on February 26, 2026, followed by a conference call and webcast the next morning for analysts, investors, and media to review the performance. The scheduled disclosure and investor outreach underscore the company’s ongoing efforts to maintain transparency with capital markets participants and provide stakeholders with timely insight into its operational and financial trajectory across both its traditional oil and gas technology offerings and its growing presence in renewable energy and storage solutions.

The most recent analyst rating on (TSE:PSI) stock is a Buy with a C$13.50 price target. To see the full list of analyst forecasts on Pason Systems stock, see the TSE:PSI Stock Forecast page.

Pason Systems Settles IP Litigation with Downing Wellhead Equipment

Pason Systems Inc. announced that its subsidiaries, Intelligent Wellhead Systems Inc. and IWS USA Corp., have reached a settlement agreement with Downing Wellhead Equipment, LLC, resolving all ongoing and pending intellectual property litigation. The confidential agreement marks a significant step in mitigating legal disputes, potentially enhancing Pason’s operational focus and stability in the industry.

The most recent analyst rating on (TSE:PSI) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Pason Systems stock, see the TSE:PSI Stock Forecast page.

Pason Systems Reports Resilient Q3 2025 Amid Industry Challenges

Pason Systems Inc. reported a 5% decrease in revenue for the third quarter of 2025 compared to the previous year, amid challenging industry conditions. Despite a decline in North American drilling activity, the company achieved a record revenue per industry day, highlighting its resilience and product adoption success. However, international operations, particularly in Argentina, faced setbacks due to a shift in customer focus and currency depreciation, impacting overall performance.

The most recent analyst rating on (TSE:PSI) stock is a Buy with a C$13.50 price target. To see the full list of analyst forecasts on Pason Systems stock, see the TSE:PSI Stock Forecast page.