PASON SYSTEMS INC (PSI.CA) Stock Fundamental Analysis
TSX:PSI - Toronto Stock Exchange - CA7029251088 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to PSI. PSI was compared to 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PSI was profitable.
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
PSI's Return On Assets of 11.63% is amongst the best of the industry. PSI outperforms 85.19% of its industry peers.
PSI has a better Return On Equity (14.16%) than 66.67% of its industry peers.
With an excellent Return On Invested Capital value of 14.44%, PSI belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSI is significantly above the industry average of 10.68%.
The last Return On Invested Capital (14.44%) 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 | 11.63% | ||
| ROE | 14.16% | ||
| ROIC | 14.44% |
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 17.04%, PSI belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
PSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.24%, PSI belongs to the top 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.
Looking at the Gross Margin, with a value of 48.03%, PSI belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
PSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.24% | ||
| PM (TTM) | 17.04% | ||
| GM | 48.03% |
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.
Compared to 1 year ago, PSI has less shares outstanding
PSI has less shares outstanding than it did 5 years ago.
PSI has a better debt/assets ratio than last year.
2.2 Solvency
PSI has an Altman-Z score of 7.01. This indicates that PSI is financially healthy and has little risk of bankruptcy at the moment.
PSI has a Altman-Z score of 7.01. This is amongst the best in the industry. PSI outperforms 96.30% of its industry peers.
PSI has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
The Debt to FCF ratio of PSI (0.24) is better than 96.30% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that PSI is not too dependend on debt financing.
The Debt to Equity ratio of PSI (0.02) is better than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 7.01 |
ROIC/WACC1.83
WACC7.89%
2.3 Liquidity
PSI has a Current Ratio of 2.45. This indicates that PSI is financially healthy and has no problem in meeting its short term obligations.
PSI has a better Current ratio (2.45) than 81.48% of its industry peers.
PSI has a Quick Ratio of 2.21. This indicates that PSI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.21, PSI belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
PSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.45%.
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 12.43% in the past year. This is quite good.
Measured over the past years, PSI shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)-45.45%
EPS 3Y54.77%
EPS 5Y19.26%
EPS Q2Q%-71.26%
Revenue 1Y (TTM)12.43%
Revenue growth 3Y26.07%
Revenue growth 5Y6.98%
Sales Q2Q%8.04%
3.2 Future
PSI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.14% yearly.
PSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y-29.9%
EPS Next 2Y-8.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 12.89, the valuation of PSI can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as PSI.
PSI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.82.
Based on the Price/Forward Earnings ratio of 9.04, the valuation of PSI can be described as reasonable.
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 (36.21), we can say PSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSI.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 5.44 |
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 -8.14% in the coming years.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-8.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, PSI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.15, PSI pays a better dividend. On top of this PSI pays more dividend than 96.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, PSI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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 57.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
PSI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP57.43%
EPS Next 2Y-8.14%
EPS Next 3YN/A
TSX:PSI (8/1/2025, 7:00:00 PM)
11.6
-0.09 (-0.77%)
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 Cap907.24M
Analysts77.78
Price Target15.71 (35.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend0.52
Dividend Growth(5Y)-6.84%
DP57.43%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.8%
Min EPS beat(2)-9.6%
Max EPS beat(2)-6%
EPS beat(4)1
Avg EPS beat(4)-8.57%
Min EPS beat(4)-31.49%
Max EPS beat(4)12.8%
EPS beat(8)4
Avg EPS beat(8)12.42%
EPS beat(12)8
Avg EPS beat(12)17.41%
EPS beat(16)12
Avg EPS beat(16)140.7%
Revenue beat(2)2
Avg Revenue beat(2)4.08%
Min Revenue beat(2)2.74%
Max Revenue beat(2)5.42%
Revenue beat(4)2
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)5.42%
Revenue beat(8)5
Avg Revenue beat(8)1.98%
Revenue beat(12)8
Avg Revenue beat(12)2.47%
Revenue beat(16)12
Avg Revenue beat(16)3.49%
PT rev (1m)0%
PT rev (3m)-2.53%
EPS NQ rev (1m)-12.5%
EPS NQ rev (3m)-20.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 9.04 | ||
| P/S | 2.15 | ||
| P/FCF | 14.38 | ||
| P/OCF | 6.87 | ||
| P/B | 1.78 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.9
EY7.76%
EPS(NY)1.28
Fwd EY11.06%
FCF(TTM)0.81
FCFY6.95%
OCF(TTM)1.69
OCFY14.56%
SpS5.4
BVpS6.5
TBVpS3.81
PEG (NY)N/A
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 14.16% | ||
| ROCE | 18.38% | ||
| ROIC | 14.44% | ||
| ROICexc | 17.26% | ||
| ROICexgc | 32.64% | ||
| OM | 23.24% | ||
| PM (TTM) | 17.04% | ||
| GM | 48.03% | ||
| FCFM | 14.93% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 126.38% | ||
| Cap/Sales | 16.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.45% | ||
| Profit Quality | 87.62% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 7.01 |
F-Score6
WACC7.89%
ROIC/WACC1.83
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)-45.45%
EPS 3Y54.77%
EPS 5Y19.26%
EPS Q2Q%-71.26%
EPS Next Y-29.9%
EPS Next 2Y-8.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.43%
Revenue growth 3Y26.07%
Revenue growth 5Y6.98%
Sales Q2Q%8.04%
Revenue Next Year4.84%
Revenue Next 2Y4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.07%
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-22.06%
FCF growth 3Y-1.81%
FCF growth 5Y-9.47%
OCF growth 1Y7.74%
OCF growth 3Y23.71%
OCF growth 5Y2.57%