PASON SYSTEMS INC (PSI.CA) Stock Fundamental Analysis
TSX:PSI - Toronto Stock Exchange - CA7029251088 - Common Stock - Currency: CAD
PSI gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 27 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 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
In the past year PSI was profitable.
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
With an excellent Return On Assets value of 19.77%, PSI belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
PSI has a better Return On Equity (24.09%) than 88.89% of its industry peers.
PSI has a Return On Invested Capital of 14.48%. This is amongst the best in the industry. PSI outperforms 85.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSI is significantly above the industry average of 9.49%.
The last Return On Invested Capital (14.48%) 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 | 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
Looking at the Profit Margin, with a value of 29.34%, PSI belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
PSI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.60%, PSI belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
PSI's Operating Margin has declined in the last couple of years.
PSI's Gross Margin of 48.64% is amongst the best of the industry. PSI outperforms 92.59% 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 | 23.6% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 7.00 indicates that PSI is not in any danger for bankruptcy at the moment.
PSI has a Altman-Z score of 7.00. This is amongst the best in the industry. PSI outperforms 96.30% 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.
The Debt to FCF ratio of PSI (0.30) is better than 92.59% of its industry peers.
PSI has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
PSI has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. PSI outperforms 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 7 |
ROIC/WACC1.86
WACC7.77%
2.3 Liquidity
PSI has a Current Ratio of 2.43. This indicates that PSI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.43, PSI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that PSI has no problem at all paying its short term obligations.
PSI has a Quick ratio of 2.19. This is amongst the best in the industry. PSI outperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
PSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.59%, which is quite impressive.
Measured over the past years, PSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.26% on average per year.
The Revenue has grown by 12.14% in the past year. This is quite good.
The Revenue has been growing slightly by 6.98% on average over the past years.
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.
PSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.47% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.55, the valuation of PSI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PSI indicates a somewhat cheap valuation: PSI is cheaper than 70.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PSI to the average of the S&P500 Index (28.10), we can say PSI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.77 indicates a reasonable valuation of PSI.
The rest of the industry has a similar Price/Forward Earnings ratio as PSI.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, PSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
PSI'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 PSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.68 | ||
| EV/EBITDA | 5.59 |
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
PSI has a Yearly Dividend Yield of 4.68%, which is a nice return.
Compared to an average industry Dividend Yield of 19.16, PSI pays a better dividend. On top of this PSI pays more dividend than 88.89% of the companies listed in the same industry.
PSI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
The dividend of PSI decreases each year by -6.84%.
PSI has been paying a dividend for at least 10 years, so it has 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 (5/5/2025, 7:00:00 PM)
11.48
-0.1 (-0.86%)
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 Cap906.46M
Analysts77.78
Price Target16.12 (40.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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)-13.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.46%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 10.77 | ||
| P/S | 2.19 | ||
| P/FCF | 17.68 | ||
| P/OCF | 7.36 | ||
| P/B | 1.8 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)1.52
EY13.24%
EPS(NY)1.07
Fwd EY9.28%
FCF(TTM)0.65
FCFY5.65%
OCF(TTM)1.56
OCFY13.59%
SpS5.24
BVpS6.39
TBVpS3.7
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 | 7 |
F-Score5
WACC7.77%
ROIC/WACC1.86
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%