PASON SYSTEMS INC (PSI.CA) Stock Fundamental Analysis
TSX:PSI - CA7029251088 - Common Stock
11.8 CAD
-0.06 (-0.51%)
We assign a fundamental rating of 7 out of 10 to PSI. PSI was compared to 26 industry peers in the Energy Equipment & Services industry. PSI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PSI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PSI had positive earnings in the past year.
PSI had a positive operating cash flow in the past year.
Each year in the past 5 years PSI has 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 (12.78%) is better than 88.89% of its industry peers.
PSI has a Return On Equity of 15.22%. This is in the better half of the industry: PSI outperforms 70.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.14%, PSI belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSI is significantly above the industry average of 11.40%.
The last Return On Invested Capital (15.14%) for PSI is well below the 3 year average (21.07%), which needs to be investigated, but indicates that PSI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 15.22% | ||
| ROIC | 15.14% |
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
Looking at the Profit Margin, with a value of 17.43%, PSI belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
In the last couple of years the Profit Margin of PSI has grown nicely.
With an excellent Operating Margin value of 23.24%, PSI belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
In the last couple of years the Operating Margin of PSI has declined.
PSI has a better Gross Margin (47.53%) than 88.89% of its industry peers.
In the last couple of years the Gross Margin of PSI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.24% | ||
| PM (TTM) | 17.43% | ||
| GM | 47.53% |
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.
PSI has less shares outstanding than it did 1 year ago.
PSI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PSI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.15 indicates that PSI is not in any danger for bankruptcy at the moment.
PSI has a better Altman-Z score (8.15) than 96.30% of its industry peers.
PSI has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
PSI has a better Debt to FCF ratio (0.25) than 92.59% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that PSI is not too dependend on debt financing.
PSI has a better Debt to Equity ratio (0.03) than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 8.15 |
ROIC/WACC1.85
WACC8.2%
2.3 Liquidity
A Current Ratio of 2.57 indicates that PSI has no problem at all paying its short term obligations.
PSI has a better Current ratio (2.57) than 88.89% of its industry peers.
PSI has a Quick Ratio of 2.28. This indicates that PSI is financially healthy and has no problem in meeting its short term obligations.
PSI's Quick ratio of 2.28 is amongst the best of the industry. PSI outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
PSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.41%.
The Earnings Per Share has been growing by 19.26% on average over the past years. This is quite good.
Looking at the last year, PSI shows a quite strong growth in Revenue. The Revenue has grown by 9.33% in the last year.
The Revenue has been growing slightly by 6.98% on average over the past years.
EPS 1Y (TTM)-37.41%
EPS 3Y54.77%
EPS 5Y19.26%
EPS Q2Q%14.29%
Revenue 1Y (TTM)9.33%
Revenue growth 3Y26.07%
Revenue growth 5Y6.98%
Sales Q2Q%0.58%
3.2 Future
Based on estimates for the next years, PSI will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.92% on average per year.
PSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.10% yearly.
EPS Next Y-41.03%
EPS Next 2Y-16.77%
EPS Next 3Y-13.92%
EPS Next 5YN/A
Revenue Next Year0.09%
Revenue Next 2Y3.11%
Revenue Next 3Y2.1%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PSI is valuated correctly with a Price/Earnings ratio of 12.83.
PSI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.06, PSI is valued rather cheaply.
A Price/Forward Earnings ratio of 11.21 indicates a reasonable valuation of PSI.
PSI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PSI to the average of the S&P500 Index (22.69), we can say PSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSI is on the same level as its industry peers.
PSI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.44 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
PSI has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PSI's earnings are expected to decrease with -13.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-16.77%
EPS Next 3Y-13.92%
5. Dividend
5.1 Amount
PSI has a Yearly Dividend Yield of 4.38%, which is a nice return.
PSI's Dividend Yield is rather good when compared to the industry average which is at 3.25. PSI pays more dividend than 96.30% of the companies in the same industry.
PSI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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
PSI pays out 55.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of PSI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP55.79%
EPS Next 2Y-16.77%
EPS Next 3Y-13.92%
TSX:PSI (9/5/2025, 7:00:00 PM)
11.8
-0.06 (-0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners45.6%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap921.11M
Analysts75.56
Price Target15.5 (31.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
Yearly Dividend0.52
Dividend Growth(5Y)-6.84%
DP55.79%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.51%
Min EPS beat(2)-6%
Max EPS beat(2)-3.01%
EPS beat(4)1
Avg EPS beat(4)-1.45%
Min EPS beat(4)-9.6%
Max EPS beat(4)12.8%
EPS beat(8)3
Avg EPS beat(8)10.47%
EPS beat(12)7
Avg EPS beat(12)15.02%
EPS beat(16)11
Avg EPS beat(16)22.76%
Revenue beat(2)1
Avg Revenue beat(2)1.76%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)5.42%
Revenue beat(4)2
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)5.42%
Revenue beat(8)4
Avg Revenue beat(8)1.72%
Revenue beat(12)7
Avg Revenue beat(12)1.92%
Revenue beat(16)11
Avg Revenue beat(16)2.81%
PT rev (1m)-1.3%
PT rev (3m)-1.3%
EPS NQ rev (1m)-6.58%
EPS NQ rev (3m)-18.39%
EPS NY rev (1m)-15.88%
EPS NY rev (3m)-15.88%
Revenue NQ rev (1m)-4.09%
Revenue NQ rev (3m)-12.28%
Revenue NY rev (1m)-4.54%
Revenue NY rev (3m)-4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 11.21 | ||
| P/S | 2.18 | ||
| P/FCF | 15.44 | ||
| P/OCF | 7.29 | ||
| P/B | 1.9 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 5.62 |
EPS(TTM)0.92
EY7.8%
EPS(NY)1.05
Fwd EY8.92%
FCF(TTM)0.76
FCFY6.48%
OCF(TTM)1.62
OCFY13.72%
SpS5.42
BVpS6.21
TBVpS3.55
PEG (NY)N/A
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 15.22% | ||
| ROCE | 19.27% | ||
| ROIC | 15.14% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 33.08% | ||
| OM | 23.24% | ||
| PM (TTM) | 17.43% | ||
| GM | 47.53% | ||
| FCFM | 14.1% |
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-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 119.91% | ||
| Cap/Sales | 15.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.08% | ||
| Profit Quality | 80.91% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 8.15 |
F-Score6
WACC8.2%
ROIC/WACC1.85
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)-37.41%
EPS 3Y54.77%
EPS 5Y19.26%
EPS Q2Q%14.29%
EPS Next Y-41.03%
EPS Next 2Y-16.77%
EPS Next 3Y-13.92%
EPS Next 5YN/A
Revenue 1Y (TTM)9.33%
Revenue growth 3Y26.07%
Revenue growth 5Y6.98%
Sales Q2Q%0.58%
Revenue Next Year0.09%
Revenue Next 2Y3.11%
Revenue Next 3Y2.1%
Revenue Next 5YN/A
EBIT growth 1Y-4.15%
EBIT growth 3Y38.99%
EBIT growth 5Y4.65%
EBIT Next Year-12.76%
EBIT Next 3Y-1.61%
EBIT Next 5YN/A
FCF growth 1Y-24.61%
FCF growth 3Y-1.81%
FCF growth 5Y-9.47%
OCF growth 1Y-0.19%
OCF growth 3Y23.71%
OCF growth 5Y2.57%