PASON SYSTEMS INC (PSI.CA) Stock Fundamental Analysis
TSX:PSI - Toronto Stock Exchange - CA7029251088 - Common Stock - Currency: CAD
Overall PSI gets a fundamental rating of 8 out of 10. We evaluated PSI against 26 industry peers in the Energy Equipment & Services industry. PSI gets an excellent profitability rating and is at the same time showing great financial health properties. PSI has a decent growth rate and is not valued too expensively. Finally PSI also has an excellent dividend rating. With these ratings, PSI could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
PSI had positive earnings in the past year.
In the past year PSI had a positive cash flow from operations.
In the past 5 years PSI has always been profitable.
In the past 5 years PSI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PSI (19.77%) is better than 96.15% of its industry peers.
PSI has a better Return On Equity (24.09%) than 92.31% of its industry peers.
PSI's Return On Invested Capital of 14.48% is amongst the best of the industry. PSI outperforms 84.62% of its industry peers.
PSI had an Average Return On Invested Capital over the past 3 years of 21.07%. This is significantly above the industry average of 9.31%.
The 3 year average ROIC (21.07%) for PSI is well above the current ROIC(14.48%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.77% | ||
| ROE | 24.09% | ||
| ROIC | 14.48% |
ROA(3y)20.89%
ROA(5y)14.68%
ROE(3y)25.28%
ROE(5y)17.77%
ROIC(3y)21.07%
ROIC(5y)14.41%
1.3 Margins
PSI has a better Profit Margin (29.34%) than 96.15% of its industry peers.
In the last couple of years the Profit Margin of PSI has grown nicely.
With an excellent Operating Margin value of 23.60%, PSI belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
PSI's Operating Margin has declined in the last couple of years.
PSI has a better Gross Margin (48.64%) than 92.31% of its industry peers.
PSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.6% | ||
| PM (TTM) | 29.34% | ||
| GM | 48.64% |
OM growth 3Y10.25%
OM growth 5Y-2.18%
PM growth 3Y21.46%
PM growth 5Y9.9%
GM growth 3Y2.51%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PSI is creating value.
The number of shares outstanding for PSI has been reduced compared to 1 year ago.
PSI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PSI has been reduced compared to a year ago.
2.2 Solvency
PSI has an Altman-Z score of 6.95. This indicates that PSI is financially healthy and has little risk of bankruptcy at the moment.
PSI has a better Altman-Z score (6.95) than 96.15% of its industry peers.
PSI has a debt to FCF ratio of 0.30. This is a very positive value and a sign of high solvency as it would only need 0.30 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.30, PSI belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that PSI is not too dependend on debt financing.
The Debt to Equity ratio of PSI (0.03) is better than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 6.95 |
ROIC/WACC1.9
WACC7.62%
2.3 Liquidity
A Current Ratio of 2.43 indicates that PSI has no problem at all paying its short term obligations.
PSI has a Current ratio of 2.43. This is in the better half of the industry: PSI outperforms 76.92% of its industry peers.
A Quick Ratio of 2.19 indicates that PSI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.19, PSI belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.59% over the past year.
The Earnings Per Share has been growing by 19.26% on average over the past years. This is quite good.
The Revenue has grown by 12.14% in the past year. This is quite good.
PSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.98% yearly.
EPS 1Y (TTM)24.59%
EPS 3Y54.77%
EPS 5Y19.26%
EPS Q2Q%90.91%
Revenue 1Y (TTM)12.14%
Revenue growth 3Y26.07%
Revenue growth 5Y6.98%
Sales Q2Q%15.36%
3.2 Future
Based on estimates for the next years, PSI will show a decrease in Earnings Per Share. The EPS will decrease by -8.14% on average per year.
Based on estimates for the next years, PSI will show a small growth in Revenue. The Revenue will grow by 7.47% on average per year.
EPS Next Y-29.9%
EPS Next 2Y-8.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.22%
Revenue Next 2Y7.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.43, which indicates a rather cheap valuation of PSI.
Based on the Price/Earnings ratio, PSI is valued a bit cheaper than 69.23% of the companies in the same industry.
PSI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
A Price/Forward Earnings ratio of 10.60 indicates a reasonable valuation of PSI.
PSI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, PSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
PSI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 5.53 |
4.3 Compensation for Growth
PSI has an outstanding profitability rating, which may justify a higher PE ratio.
PSI's earnings are expected to decrease with -8.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-8.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.64%, PSI is a good candidate for dividend investing.
In the last 3 months the price of PSI has falen by -20.25%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 19.88, PSI pays a better dividend. On top of this PSI pays more dividend than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, PSI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
The dividend of PSI decreases each year by -6.84%.
PSI has paid a dividend for at least 10 years, which is a reliable track record.
PSI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.84%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
34.04% of the earnings are spent on dividend by PSI. This is a low number and sustainable payout ratio.
The Dividend Rate of PSI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP34.04%
EPS Next 2Y-8.14%
EPS Next 3YN/A
TSX:PSI (4/25/2025, 7:00:00 PM)
11.3
+0.1 (+0.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners46%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap897.56M
Analysts77.78
Price Target16.12 (42.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend0.52
Dividend Growth(5Y)-6.84%
DP34.04%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.6%
Min EPS beat(2)-9.6%
Max EPS beat(2)12.8%
EPS beat(4)2
Avg EPS beat(4)36.29%
Min EPS beat(4)-31.49%
Max EPS beat(4)173.46%
EPS beat(8)5
Avg EPS beat(8)15.44%
EPS beat(12)9
Avg EPS beat(12)20.12%
EPS beat(16)13
Avg EPS beat(16)147.2%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)2.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)2.74%
Revenue beat(8)5
Avg Revenue beat(8)1.58%
Revenue beat(12)8
Avg Revenue beat(12)2.54%
Revenue beat(16)12
Avg Revenue beat(16)3.25%
PT rev (1m)-11.24%
PT rev (3m)-15.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 10.6 | ||
| P/S | 2.17 | ||
| P/FCF | 17.51 | ||
| P/OCF | 7.29 | ||
| P/B | 1.78 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 5.53 |
EPS(TTM)1.52
EY13.45%
EPS(NY)1.07
Fwd EY9.43%
FCF(TTM)0.65
FCFY5.71%
OCF(TTM)1.55
OCFY13.73%
SpS5.21
BVpS6.35
TBVpS3.68
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.77% | ||
| ROE | 24.09% | ||
| ROCE | 18.43% | ||
| ROIC | 14.48% | ||
| ROICexc | 17.08% | ||
| ROICexgc | 32.32% | ||
| OM | 23.6% | ||
| PM (TTM) | 29.34% | ||
| GM | 48.64% | ||
| FCFM | 12.38% |
ROA(3y)20.89%
ROA(5y)14.68%
ROE(3y)25.28%
ROE(5y)17.77%
ROIC(3y)21.07%
ROIC(5y)14.41%
ROICexc(3y)33.47%
ROICexc(5y)23.4%
ROICexgc(3y)43.92%
ROICexgc(5y)30.65%
ROCE(3y)26.83%
ROCE(5y)18.34%
ROICexcg growth 3Y15.99%
ROICexcg growth 5Y-2.42%
ROICexc growth 3Y2.27%
ROICexc growth 5Y-9.42%
OM growth 3Y10.25%
OM growth 5Y-2.18%
PM growth 3Y21.46%
PM growth 5Y9.9%
GM growth 3Y2.51%
GM growth 5Y1.3%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.3 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 137.86% | ||
| Cap/Sales | 17.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.16% | ||
| Profit Quality | 42.18% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 6.95 |
F-Score5
WACC7.62%
ROIC/WACC1.9
Cap/Depr(3y)151.24%
Cap/Depr(5y)102.27%
Cap/Sales(3y)12.92%
Cap/Sales(5y)9.47%
Profit Quality(3y)67.88%
Profit Quality(5y)234.54%
High Growth Momentum
Growth
EPS 1Y (TTM)24.59%
EPS 3Y54.77%
EPS 5Y19.26%
EPS Q2Q%90.91%
EPS Next Y-29.9%
EPS Next 2Y-8.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.14%
Revenue growth 3Y26.07%
Revenue growth 5Y6.98%
Sales Q2Q%15.36%
Revenue Next Year6.22%
Revenue Next 2Y7.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.2%
EBIT growth 3Y38.99%
EBIT growth 5Y4.65%
EBIT Next Year-10.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-45.54%
FCF growth 3Y-1.81%
FCF growth 5Y-9.47%
OCF growth 1Y-8.77%
OCF growth 3Y23.71%
OCF growth 5Y2.57%