Pason Systems (PSI) AI Stock Analysis

• Market Cap: C$925.34M
• Dividend Yield: 4.27%
• Average Volume (3M): 273.22K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.13
• Revenue Growth: 9.33%
• EPS Growth: -36.51%
• Country: CA
• Employees: 678
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.16
• Shares Outstanding: 78,022,240
• 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$14.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$14.00 ▲(14.94% Upside)

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

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategy, supporting long-term financial health.

Strong Financial Position

A strong cash position and no debt provide financial flexibility for strategic investments and weathering industry downturns.

Completions Segment Success

Growth in the Completions segment despite industry declines suggests robust product adoption and competitive advantage.

Negative Factors

Decline in Net Income

A decline in net income reflects profitability challenges, which could impact future investment and shareholder returns.

Challenges in International Drilling

Revenue decline in international markets indicates potential operational challenges and limits growth opportunities abroad.

Industry-Wide Challenges

Industry-wide declines can pressure revenue and profitability, affecting long-term growth prospects in core markets.

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	423.11M	414.13M	369.31M	335.00M	206.69M	156.64M
Gross Profit	361.63M	361.95M	203.67M	191.72M	93.33M	44.40M
EBITDA	153.97M	149.94M	161.50M	160.26M	80.19M	55.74M
Net Income	73.74M	121.50M	97.54M	107.62M	33.84M	6.57M
Balance Sheet
Total Assets	577.10M	614.61M	487.88M	469.93M	379.94M	361.42M
Cash, Cash Equivalents and Short-Term Investments	69.34M	80.78M	171.77M	172.43M	158.28M	149.28M
Total Debt	15.13M	15.42M	12.99M	5.53M	7.33M	6.17M
Total Liabilities	102.24M	118.94M	86.92M	88.97M	72.16M	56.13M
Stockholders Equity	484.49M	504.41M	408.06M	386.48M	311.48M	307.06M
Cash Flow
Free Cash Flow	59.66M	51.26M	94.12M	69.91M	54.14M	53.42M
Operating Cash Flow	126.37M	123.19M	135.03M	104.41M	65.06M	58.58M
Investing Cash Flow	-61.72M	-155.58M	-13.06M	-92.23M	-27.08M	-12.28M
Financing Cash Flow	-62.44M	-63.37M	-65.82M	-42.06M	-27.05M	-52.20M

Pason Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.18
• 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 12.18 is above the 20-day moving average (MA) of 11.87, above the 50-day MA of 11.86, and above the 200-day MA of 12.01, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 77.60 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
PSI	77 Outperform	C$925.34M	12.76	15.38%	4.27%	9.33%	-36.51%
CEU	76 Outperform	$2.04B	11.61	23.31%	1.65%	8.36%	2.09%
TOT	76 Outperform	C$538.83M	8.37	11.66%	2.69%	14.74%	62.76%
TCW	72 Outperform	$1.12B	9.26	18.06%	3.80%	9.24%	6.35%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
STEP	63 Neutral	C$399.37M	-19.59	-1.94%	―	-9.19%	-119.27%
CFW	55 Neutral	C$269.69M	27.35	1.53%	―	-4.63%	-92.13%

Pason Systems Corporate Events

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.

Pason Systems to Announce Q3 2025 Financial Results

Pason Systems Inc. announced it will release its third quarter results for 2025 on November 6, with a conference call scheduled for November 7 to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and operational progress, potentially impacting its market positioning in the data management and energy sectors.

The most recent analyst rating on (TSE:PSI) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Pason Systems stock, see the TSE:PSI Stock Forecast page.

Pason Systems’ Earnings Call: Mixed Sentiment Amid Growth

In the recent earnings call, Pason Systems demonstrated resilience and growth in several segments, notably in Completions and Solar and Energy Storage, despite facing industry challenges. However, the company also faced declines in North American and International Drilling segments, along with a decrease in adjusted EBITDA, presenting a mixed overall sentiment. While there are positive growth areas, challenges remain in other segments.