Pason Systems (PSI) AI Stock Analysis

• Market Cap: C$934.73M
• Dividend Yield: 4.37%
• Average Volume (3M): 129.27K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.03
• Revenue Growth: 12.43%
• EPS Growth: -44.90%
• Country: CA
• Employees: 678
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.25
• Shares Outstanding: 78,482,770
• 10 Day Avg. Volume: 144,161
• 30 Day Avg. Volume: 129,266
• PEG Ratio: 0.06
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.69
• 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$15.50
• Price Target Upside: 31.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: C$14.00 ▲(18.64%Upside)

Pason Systems' strong financial performance and effective cost management are the most significant strengths, supported by a solid balance sheet. The fair valuation and attractive dividend yield enhance the stock's appeal. The earnings call provides a balanced view of growth prospects and challenges. Technical analysis suggests a cautious approach due to mixed signals.

Positive Factors

Financial Performance

PSI's financial results surpassed expectations due to outstanding performance in its Solar/Energy Storage segment and notable strength from IWS.

Growth Strategy

The company's capital budget of $65 million focuses on growth areas such as IWS and mud analyzer rollouts, emphasizing its strategic investment in future expansion.

Stock Buyback Potential

PSI's potential to ramp up its stock buyback program indicates strong confidence in its future performance.

Negative Factors

US Rig Declines

Despite PSI's strong revenue per day metrics, the decline in US rig counts presents a challenge that needs to be addressed.

Pason Systems Business Overview & Revenue Model

Company Description

Pason Systems Inc. is a leading global provider of specialized data management systems for the oil and gas industry. The company operates in the energy services sector, offering technologically advanced products and services that enable oil and gas companies to optimize their drilling operations. Pason's core offerings include data acquisition, wellsite reporting, and remote communications solutions that enhance operational efficiency and decision-making processes for its clients.

How the Company Makes Money

Pason Systems makes money primarily through the sale and rental of its data management systems and related services to oil and gas companies. The company generates revenue by providing drilling data solutions, which include hardware, software, and services that facilitate real-time data acquisition, analysis, and transmission. Pason's key revenue streams are derived from its product offerings such as Electronic Drilling Recorder (EDR), Pason DataHub, and various wellsite communications tools. Additionally, Pason may benefit from long-term contracts and partnerships with leading oil and gas operators, which ensure a steady stream of income. The company also gains from providing remote support and maintenance services, further contributing to its revenue.

Pason Systems Financial Statement Overview

Summary

Pason Systems demonstrates strong financial performance with robust revenue growth and effective cost management. High gross and EBIT margins indicate robust operational efficiency. The balance sheet is healthy with low leverage, although slight declines in profitability metrics are noted.

Income Statement

Pason Systems shows strong financial performance with a consistent revenue growth trajectory. The TTM (Trailing-Twelve-Months) period reflects a gross profit margin of 86.06%, indicating robust cost management. The EBIT margin stands at 26.47%, showcasing operational efficiency. However, the net profit margin has decreased compared to the previous annual period, highlighting potential cost or revenue challenges. Overall, the company exhibits a healthy growth pattern in revenues and profitability.

Balance Sheet

The balance sheet of Pason Systems reveals a strong equity position with an equity ratio of 82.13%, indicating low financial leverage. The debt-to-equity ratio is minimal at 0.03, reflecting prudent debt management. Return on Equity (ROE) is solid at 14.16%, although it has decreased from the previous year, suggesting a slight decline in profitability relative to equity. The company's high equity ratio and low leverage position it well for future growth.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 1.84, demonstrating effective cash generation from operations. The free cash flow to net income ratio is at 0.88, indicating substantial free cash generation. However, free cash flow growth rate is slower than previous years, suggesting potential capital expenditure increases. Overall, the company maintains a strong cash flow position, supporting its operational and financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.55M	414.13M	369.31M	335.00M	206.69M	156.64M
Gross Profit	363.48M	361.95M	203.67M	191.72M	93.33M	44.40M
EBITDA	153.56M	149.94M	161.50M	160.26M	80.19M	55.74M
Net Income	71.98M	121.50M	97.54M	107.62M	33.84M	6.57M
Balance Sheet
Total Assets	618.81M	614.61M	487.88M	469.93M	379.94M	361.42M
Cash, Cash Equivalents and Short-Term Investments	87.40M	80.78M	171.77M	172.43M	158.28M	149.28M
Total Debt	14.85M	15.42M	12.99M	5.53M	7.33M	6.17M
Total Liabilities	119.48M	118.94M	86.92M	88.97M	72.16M	56.13M
Stockholders Equity	508.38M	504.41M	408.06M	386.48M	311.48M	307.06M
Cash Flow
Free Cash Flow	63.07M	51.26M	94.12M	69.91M	54.14M	53.42M
Operating Cash Flow	132.12M	123.19M	135.03M	104.41M	65.06M	58.58M
Investing Cash Flow	-65.20M	-155.58M	-13.06M	-92.23M	-27.08M	-12.28M
Financing Cash Flow	-53.03M	-63.37M	-65.82M	-42.06M	-27.05M	-52.20M

Pason Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSI, the sentiment is Negative. The current price of 11.8 is below the 20-day moving average (MA) of 12.39, below the 50-day MA of 12.29, and below the 200-day MA of 12.82, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PSI.

Pason Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	79 Outperform	C$421.07M	6.79	11.38%	3.36%	11.02%	102.23%
CEU	76 Outperform	$1.66B	9.54	23.66%	1.93%	8.79%	31.76%
TCW	76 Outperform	$997.80M	10.79	19.44%	3.40%	2.15%	-5.97%
PSI	74 Outperform	C$934.73M	13.15	14.68%	4.37%	12.43%	-44.90%
CFW	69 Neutral	C$310.92M	17.10	3.00%	―	-5.50%	-88.55%
STEP	66 Neutral	C$330.46M	151.92	-3.90%	―	-5.98%	-121.37%
Sector *	52 Neutral	C$2.96B	-1.55	-3.48%	6.54%	3.13%	-49.39%

Pason Systems Corporate Events

Pason Systems to Announce Q2 2025 Results

Pason Systems Inc. announced that it will release its second quarter results for 2025 on August 6, with a conference call scheduled for the following day to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and operational progress, potentially influencing market perceptions and investment decisions.

The most recent analyst rating on (TSE:PSI) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Pason Systems stock, see the TSE:PSI Stock Forecast page.

Pason Systems Inc. Announces 2025 Director Election Results

Pason Systems Inc. announced the election results of its 2025 annual general meeting, where six directors were elected to hold office until the next meeting. This election reflects the company’s ongoing commitment to maintaining strong leadership as it continues to provide innovative solutions in both the oil and gas and renewable energy sectors, potentially impacting its market positioning and stakeholder interests.

Pason Systems Reports Revenue Growth Amid Industry Challenges in Q1 2025

Pason Systems Inc. reported an 8% increase in consolidated revenue for the first quarter of 2025, reaching $113.2 million, despite challenging industry conditions. The company saw growth in its North American Drilling and Completions segments, with notable revenue increases of 3% and 25% respectively, while the International Drilling segment faced revenue declines due to shifts in customer operational focus and inflationary pressures. The company’s ability to outpace industry activity levels highlights its operational leverage and effective cost management.