Latest news with #PasonSystems
Yahoo
3 days ago
- Business
- Yahoo
Pason Systems Second Quarter 2025 Earnings: EPS Misses Expectations
Pason Systems (TSE:PSI) Second Quarter 2025 Results Key Financial Results Revenue: CA$96.4m (flat on 2Q 2024). Net income: CA$12.6m (up 16% from 2Q 2024). Profit margin: 13% (up from 11% in 2Q 2024). EPS: CA$0.16 (up from CA$0.14 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Pason Systems EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.0%. Looking ahead, revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the Energy Services industry in Canada. Performance of the Canadian Energy Services industry. The company's share price is broadly unchanged from a week ago. Risk Analysis You still need to take note of risks, for example - Pason Systems has 2 warning signs we think you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Pason Systems Inc (PSYTF) Q2 2025 Earnings Call Highlights: Navigating Industry Challenges with ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Pason Systems Inc (PSYTF) reported a 1% increase in consolidated revenue to $96.4 million in Q2 2025, despite challenging industry conditions. The company maintained a strong balance sheet with $69.3 million in total cash and no interest-bearing debt. Revenue from the completion segment grew 12% year over year, outperforming a 25% decrease in industry activity. The solar and energy storage segment saw a 58% increase in revenue year over year, driven by increased control system project deliveries. Pason Systems Inc (PSYTF) returned $20.2 million to shareholders in Q2 2025 through dividends and share repurchases. Negative Points Adjusted EBITDA decreased by 5% from the previous year, with a margin decline to 32.7% due to higher revenue contributions from lower-margin segments. North American drilling segment revenue fell by 2% year over year, reflecting a 5% decrease in industry drilling activity. The international drilling segment faced an 11% revenue decline due to a shift in customer focus in Argentina from conventional to unconventional drilling. Free cash flow decreased to $5.3 million in Q2 2025 from $8 million in the same period of 2024, reflecting challenging industry conditions. The company anticipates a reduction in its 2025 capital program, lowering expected capital expenditures from $65 million to between $55 million and $60 million. Q & A Highlights Warning! GuruFocus has detected 1 Warning Sign with PSYTF. Q: Can you discuss the trajectory of your job count in the completions segment, given the decline in the US industry frac count? A: John Faber, President and CEO: Our job count growth has been driven by adding new customers, which offsets the slowdown from existing customers. We expect gas activity to help bolster job count as it comes back, aiding growth from existing customers. Q: How do you expect your job count to trend over the second half of the year compared to industry markers? A: John Faber, President and CEO: While we anticipate continuing to outpace industry growth, significant outperformance becomes more challenging over time. It will depend on how much existing customers increase their activity and the addition of new customers. Q: Can you elaborate on the shift from conventional to unconventional drilling in Argentina and its impact on Pason? A: John Faber, President and CEO: The shift involves a large customer selling conventional assets, which have lower revenue opportunities. We expect to maintain a strong position in unconventional drilling, which offers higher value products and better margins. Q: What is your current job capacity in the IWS segment, and how do you view market saturation for IWS technology? A: John Faber, President and CEO: It's challenging to estimate job capacity due to varying equipment needs. We are comfortable with our capital program for 2025, which supports outpacing industry growth. There's still significant opportunity for automation in the completion space. Q: How do you view the market demand and potential saturation for the mud analyzer product? A: John Faber, President and CEO: Challenges for scaling the mud analyzer include technical issues and helping customers understand data usage. We are investing in operational support to address these challenges and drive adoption. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Insider
27-06-2025
- Business
- Business Insider
RBC Capital Keeps Their Buy Rating on Pason Systems (PSI)
RBC Capital analyst Keith Mackey maintained a Buy rating on Pason Systems (PSI – Research Report) yesterday and set a price target of C$16.00. The company's shares closed yesterday at C$12.26. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Mackey covers the Energy sector, focusing on stocks such as Baker Hughes Company, Patterson-UTI, and Atlas Energy Solutions. According to TipRanks, Mackey has an average return of 16.9% and a 56.70% success rate on recommended stocks. Pason Systems has an analyst consensus of Moderate Buy, with a price target consensus of C$15.50. Based on Pason Systems' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of C$113.18 million and a net profit of C$20.01 million. In comparison, last year the company earned a revenue of C$104.76 million and had a net profit of C$69.53 million Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PSI in relation to earlier this year.
Yahoo
15-06-2025
- Business
- Yahoo
Is Pason Systems Inc.'s (TSE:PSI) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
Pason Systems' (TSE:PSI) stock is up by a considerable 10% over the past month. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Pason Systems' ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Pason Systems is: 14% = CA$70m ÷ CA$499m (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.14 in profit. Check out our latest analysis for Pason Systems So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, Pason Systems' ROE looks acceptable. And on comparing with the industry, we found that the the average industry ROE is similar at 14%. This probably goes some way in explaining Pason Systems' significant 34% net income growth over the past five years amongst other factors. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place. As a next step, we compared Pason Systems' net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 56% in the same period. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Pason Systems fairly valued compared to other companies? These 3 valuation measures might help you decide. The three-year median payout ratio for Pason Systems is 34%, which is moderately low. The company is retaining the remaining 66%. So it seems that Pason Systems is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered. Moreover, Pason Systems is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Overall, we are quite pleased with Pason Systems' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a respectable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Pason Systems (TSE:PSI) shareholders have earned a 14% CAGR over the last five years
If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the Pason Systems Inc. (TSE:PSI) share price is up 64% in the last five years, that's less than the market return. The last year has been disappointing, with the stock price down 25% in that time. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, Pason Systems managed to grow its earnings per share at 8.4% a year. So the EPS growth rate is rather close to the annualized share price gain of 10% per year. This indicates that investor sentiment towards the company has not changed a great deal. Indeed, it would appear the share price is reacting to the EPS. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It might be well worthwhile taking a look at our free report on Pason Systems' earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Pason Systems, it has a TSR of 95% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! Pason Systems shareholders are down 22% for the year (even including dividends), but the market itself is up 16%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 14%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Pason Systems , and understanding them should be part of your investment process. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
