Pason Systems (PSI) AI Stock Analysis

• Market Cap: C$907.10M
• Dividend Yield: 4.64%
• Average Volume (3M): 161.29K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.06
• Revenue Growth: 12.43%
• EPS Growth: -44.90%
• Country: CA
• Employees: 678
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.25
• Shares Outstanding: 79,430,660
• 10 Day Avg. Volume: 157,879
• 30 Day Avg. Volume: 161,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: 38.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Pason Systems earns a solid overall score driven by strong financial performance and attractive valuation. The primary strengths include high profitability and revenue growth, along with a low P/E ratio and high dividend yield. Technical analysis indicates short-term weakness, and challenges in international segments pose risks, but strong domestic performance and strategic diversification provide a positive outlook.

Positive Factors

Financial Performance

PSI's Q4/24 financial results beat expectations on record performance from its Solar/Energy Storage segment as well as some strength from IWS.

Growth Strategy

The capital budget is set at $65 million with a focus on growth areas like IWS and mud analyzer rollouts.

Shareholder Confidence

The company's potential to ramp up its buyback program suggests confidence in future performance.

Negative Factors

Market Conditions

Revenue per day metrics are largely offsetting US rig declines, indicating strong positioning for growth.

Pason Systems Business Overview & Revenue Model

Company Description

Pason Systems Inc. is a prominent provider of specialized data management systems primarily serving the oil and gas industry. Headquartered in Canada, the company specializes in delivering comprehensive data solutions that enable exploration and production companies to optimize their drilling operations. Pason's core offerings include innovative technologies such as Electronic Drilling Recorders, DataHub, and various drilling intelligence systems that enhance the efficiency and safety of drilling activities.

How the Company Makes Money

Pason Systems generates revenue primarily through the sale and rental of its innovative data management systems and technologies to oil and gas companies. The company earns income by providing its clients with electronic drilling recorders and related software solutions, which are usually leased on a subscription basis. This model ensures a steady stream of recurring revenue. Additionally, Pason benefits from offering supplementary services, such as data analysis and remote monitoring, which are integral to improving operational efficiency for its clients. Strategic partnerships and long-standing relationships with major players in the oil and gas sector further bolster Pason's financial performance, allowing the company to maintain a strong market position and capitalize on industry demand for advanced drilling technologies.

Pason Systems Financial Statement Overview

Summary

Pason Systems demonstrates a solid financial foundation with strong revenue growth and effective cost management, as evidenced by high margins and robust cash generation. The company maintains a conservative balance sheet with low leverage, positioning it well for future expansion. However, minor 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
414.13M	369.31M	335.00M	206.69M	156.64M
	Gross Profit
361.95M	203.67M	191.72M	93.33M	44.40M
	EBIT
97.76M	160.55M	123.73M	44.62M	11.25M
	EBITDA
149.94M	161.50M	160.26M	80.19M	55.74M
	Net Income Common Stockholders
121.50M	97.54M	107.62M	33.84M	6.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.78M	171.77M	172.43M	158.28M	149.28M
	Total Assets
614.61M	487.88M	469.93M	379.94M	361.42M
	Total Debt
15.42M	12.99M	5.53M	7.33M	6.17M
	Net Debt
-61.78M	-158.78M	-126.53M	-150.95M	-143.11M
	Total Liabilities
118.94M	86.92M	88.97M	72.16M	56.13M
	Stockholders Equity
504.41M	408.06M	386.48M	311.48M	307.06M
Cash Flow		Free Cash Flow
51.26M	94.12M	69.91M	54.14M	53.42M
	Operating Cash Flow
123.19M	135.03M	104.41M	65.06M	58.58M
	Investing Cash Flow
-155.58M	-13.06M	-92.23M	-27.08M	-12.28M
	Financing Cash Flow
-63.37M	-65.82M	-42.06M	-27.05M	-52.20M

Pason Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 11.2 is above the 20-day moving average (MA) of 11.16, below the 50-day MA of 12.03, and below the 200-day MA of 13.38, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 is Neutral, 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
CEU	76 Outperform	$1.35B	7.56	23.66%	2.14%	8.79%	31.76%
TCW	75 Outperform	$768.56M	7.39	21.89%	4.46%	0.84%	-1.74%
TOT	75 Outperform	C$340.56M	5.78	11.38%	4.07%	2.65%	52.69%
PSI	72 Outperform	C$907.10M	12.68	14.68%	4.64%	12.43%	-44.90%
STEP	59 Neutral	C$271.68M	145.00	0.49%	―	0.98%	-96.29%
Sector *	56 Neutral	$6.99B	3.67	-4.87%	5.88%	0.18%	-49.70%
CFW	55 Neutral	C$287.73M	27.64	1.34%	―	-15.92%	-94.84%

Pason Systems Corporate Events

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.

Spark’s Take on TSE:PSI Stock

According to Spark, TipRanks’ AI Analyst, TSE:PSI is a Outperform.

Pason Systems earns a solid overall score driven by strong financial performance and attractive valuation. The primary strengths include high profitability and revenue growth, along with a low P/E ratio and high dividend yield. Technical analysis indicates short-term weakness, and challenges in international segments pose risks, but strong domestic performance and strategic diversification provide a positive outlook.

To see Spark’s full report on TSE:PSI stock, click here.

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.

Spark’s Take on TSE:PSI Stock

According to Spark, TipRanks’ AI Analyst, TSE:PSI is a Outperform.

Pason Systems earns a solid overall score driven by strong financial performance and attractive valuation. The primary strengths include high profitability and revenue growth, along with a low P/E ratio and high dividend yield. However, technical analysis indicates short-term weakness, and there are some concerns regarding EBITDA margins and cash flow pressures. The earnings call confirmed growth in new segments but also highlighted these financial challenges.

To see Spark’s full report on TSE:PSI stock, click here.

Pason Systems to Announce Q1 2025 Results and Hold AGM

Pason Systems Inc. announced it will hold its annual general meeting and release its first quarter results for 2025 on May 1. The company will also host a conference call on May 2 to discuss these results, providing an opportunity for stakeholders to gain insights into its financial performance and strategic direction.

Pason Systems Reports Strong Q4 2024 Results and Declares Dividend

Pason Systems Inc. reported its fourth quarter and annual financial results for 2024, highlighting a 15% increase in total revenue compared to the previous year. The company also declared a quarterly dividend, reflecting its commitment to returning value to shareholders. Despite challenges in international drilling revenue, Pason saw growth in its solar and energy storage segment, indicating a strategic diversification of its revenue streams. The company’s net income nearly doubled in the fourth quarter, showcasing strong operational performance and financial health.