PHX ENERGY SERVICES CORP (PHX.CA) Stock Fundamental Analysis
TSX:PHX - Toronto Stock Exchange - CA69338U1012 - Common Stock - Currency: CAD
PHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 industry peers in the Energy Equipment & Services industry. PHX scores excellent on profitability, but there are some minor concerns on its financial health. PHX is not valued too expensively and it also shows a decent growth rate. Finally PHX also has an excellent dividend rating. These ratings could make PHX a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
PHX had positive earnings in the past year.
PHX had a positive operating cash flow in the past year.
PHX had positive earnings in 4 of the past 5 years.
In the past 5 years PHX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.74%, PHX belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
The Return On Equity of PHX (24.54%) is better than 88.46% of its industry peers.
With an excellent Return On Invested Capital value of 15.34%, PHX belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PHX is significantly above the industry average of 3.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 24.54% | ||
| ROIC | 15.34% |
ROA(3y)15.47%
ROA(5y)10.29%
ROE(3y)29.45%
ROE(5y)19.87%
ROIC(3y)17.18%
ROIC(5y)11.92%
1.3 Margins
With a decent Profit Margin value of 8.34%, PHX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Profit Margin of PHX has grown nicely.
PHX has a Operating Margin (8.06%) which is in line with its industry peers.
PHX's Operating Margin has improved in the last couple of years.
PHX has a Gross Margin of 18.58%. This is in the lower half of the industry: PHX underperforms 61.54% of its industry peers.
PHX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.06% | ||
| PM (TTM) | 8.34% | ||
| GM | 18.58% |
OM growth 3Y25.84%
OM growth 5Y38.98%
PM growth 3Y7.4%
PM growth 5YN/A
GM growth 3Y0.71%
GM growth 5Y4.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PHX is creating value.
PHX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PHX has been reduced compared to 5 years ago.
Compared to 1 year ago, PHX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.19 indicates that PHX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.19, PHX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Debt to FCF ratio of PHX is 4.87, which is a neutral value as it means it would take PHX, 4.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.87, PHX is in line with its industry, outperforming 46.15% of the companies in the same industry.
PHX has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PHX (0.24) is better than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.19 |
ROIC/WACC2.03
WACC7.57%
2.3 Liquidity
PHX has a Current Ratio of 1.66. This is a normal value and indicates that PHX is financially healthy and should not expect problems in meeting its short term obligations.
PHX's Current ratio of 1.66 is in line compared to the rest of the industry. PHX outperforms 53.85% of its industry peers.
A Quick Ratio of 1.20 indicates that PHX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, PHX is in line with its industry, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
PHX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.79%.
PHX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.81% yearly.
The Revenue has been growing slightly by 4.69% in the past year.
The Revenue has been growing by 13.53% on average over the past years. This is quite good.
EPS 1Y (TTM)-35.79%
EPS 3Y38.81%
EPS 5YN/A
EPS Q2Q%18.92%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y24.73%
Revenue growth 5Y13.53%
Sales Q2Q%16.6%
3.2 Future
Based on estimates for the next years, PHX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.11% on average per year.
PHX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y23.4%
EPS Next 2Y13.62%
EPS Next 3Y10.11%
EPS Next 5YN/A
Revenue Next Year6.64%
Revenue Next 2Y2.51%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.97, the valuation of PHX can be described as very cheap.
Based on the Price/Earnings ratio, PHX is valued a bit cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of PHX to the average of the S&P500 Index (26.32), we can say PHX is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.73, the valuation of PHX can be described as very cheap.
Based on the Price/Forward Earnings ratio, PHX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
PHX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 5.73 |
4.2 Price Multiples
PHX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHX indicates a slightly more expensive valuation: PHX is more expensive than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.1 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
PHX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y13.62%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
PHX has a Yearly Dividend Yield of 9.47%, which is a nice return.
PHX's Dividend Yield is rather good when compared to the industry average which is at 5.62. PHX pays more dividend than 96.15% of the companies in the same industry.
PHX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.47% |
5.2 History
On average, the dividend of PHX grows each year by 145.41%, which is quite nice.
PHX has paid a dividend for at least 10 years, which is a reliable track record.
PHX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)145.41%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
64.92% of the earnings are spent on dividend by PHX. This is not a sustainable payout ratio.
The dividend of PHX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.92%
EPS Next 2Y13.62%
EPS Next 3Y10.11%
TSX:PHX (6/13/2025, 7:00:00 PM)
8.5
+0.05 (+0.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners26.55%
Inst Owner ChangeN/A
Ins Owners10.98%
Ins Owner ChangeN/A
Market Cap387.26M
Analysts80
Price Target11.22 (32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.47% |
Yearly Dividend0.81
Dividend Growth(5Y)145.41%
DP64.92%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.38%
Min EPS beat(2)-0.99%
Max EPS beat(2)17.74%
EPS beat(4)2
Avg EPS beat(4)1.59%
Min EPS beat(4)-27.39%
Max EPS beat(4)17.74%
EPS beat(8)6
Avg EPS beat(8)20.85%
EPS beat(12)9
Avg EPS beat(12)14.38%
EPS beat(16)11
Avg EPS beat(16)62.83%
Revenue beat(2)2
Avg Revenue beat(2)4.02%
Min Revenue beat(2)3.67%
Max Revenue beat(2)4.37%
Revenue beat(4)3
Avg Revenue beat(4)1.95%
Min Revenue beat(4)-2.73%
Max Revenue beat(4)4.37%
Revenue beat(8)7
Avg Revenue beat(8)3.48%
Revenue beat(12)9
Avg Revenue beat(12)5.36%
Revenue beat(16)11
Avg Revenue beat(16)4.77%
PT rev (1m)-5.71%
PT rev (3m)-12%
EPS NQ rev (1m)20%
EPS NQ rev (3m)20%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)5.1%
Revenue NQ rev (3m)5.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 5.73 | ||
| P/S | 0.56 | ||
| P/FCF | 31.1 | ||
| P/OCF | 4.01 | ||
| P/B | 1.66 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 4.08 |
EPS(TTM)1.22
EY14.35%
EPS(NY)1.48
Fwd EY17.47%
FCF(TTM)0.27
FCFY3.22%
OCF(TTM)2.12
OCFY24.96%
SpS15.08
BVpS5.13
TBVpS4.74
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 24.54% | ||
| ROCE | 17.75% | ||
| ROIC | 15.34% | ||
| ROICexc | 16.06% | ||
| ROICexgc | 17.07% | ||
| OM | 8.06% | ||
| PM (TTM) | 8.34% | ||
| GM | 18.58% | ||
| FCFM | 1.81% |
ROA(3y)15.47%
ROA(5y)10.29%
ROE(3y)29.45%
ROE(5y)19.87%
ROIC(3y)17.18%
ROIC(5y)11.92%
ROICexc(3y)18.26%
ROICexc(5y)12.83%
ROICexgc(3y)19.36%
ROICexgc(5y)13.72%
ROCE(3y)19.88%
ROCE(5y)13.79%
ROICexcg growth 3Y25.49%
ROICexcg growth 5Y44.33%
ROICexc growth 3Y27.98%
ROICexc growth 5Y47.19%
OM growth 3Y25.84%
OM growth 5Y38.98%
PM growth 3Y7.4%
PM growth 5YN/A
GM growth 3Y0.71%
GM growth 5Y4.52%
F-Score4
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 165.42% | ||
| Cap/Sales | 12.25% | ||
| Interest Coverage | 15.39 | ||
| Cash Conversion | 90.94% | ||
| Profit Quality | 21.72% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.19 |
F-Score4
WACC7.57%
ROIC/WACC2.03
Cap/Depr(3y)180.98%
Cap/Depr(5y)150.31%
Cap/Sales(3y)12.27%
Cap/Sales(5y)11.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.79%
EPS 3Y38.81%
EPS 5YN/A
EPS Q2Q%18.92%
EPS Next Y23.4%
EPS Next 2Y13.62%
EPS Next 3Y10.11%
EPS Next 5YN/A
Revenue 1Y (TTM)4.69%
Revenue growth 3Y24.73%
Revenue growth 5Y13.53%
Sales Q2Q%16.6%
Revenue Next Year6.64%
Revenue Next 2Y2.51%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y-24.65%
EBIT growth 3Y56.96%
EBIT growth 5Y57.79%
EBIT Next Year177.33%
EBIT Next 3Y41.28%
EBIT Next 5YN/A
FCF growth 1Y142.06%
FCF growth 3Y11.05%
FCF growth 5Y-6.07%
OCF growth 1Y114.09%
OCF growth 3Y28.7%
OCF growth 5Y14.07%