Pason Systems, Inc. (PSI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pason Systems, Inc.

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Why is Pason Systems, Inc. ?

High Management Efficiency with a high ROE of 15.33%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 73.96

Poor long term growth as Net Sales has grown by an annual rate of 26.68% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At CAD 0.38 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at CAD 98.68 MM
ROCE(HY) Lowest at 9.28%

With ROE of 10.94%, it has a fair valuation with a 1.98 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.80%, its profits have fallen by -28.2%

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 6.80% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pason Systems, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Pason Systems, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Pason Systems, Inc.

6.8%

0.67

27.79%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.68%

EBIT Growth (5y)

43.18%

EBIT to Interest (avg)

92.42

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.84

Tax Ratio

26.51%

Dividend Payout Ratio

76.82%

Pledged Shares

Institutional Holding

1.03%

ROCE (avg)

34.84%

ROE (avg)

15.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.98

EV to EBIT

12.09

EV to EBITDA

6.63

EV to Capital Employed

2.15

EV to Sales

2.19

PEG Ratio

Dividend Yield

ROCE (Latest)

17.75%

ROE (Latest)

10.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 77.43%

-17What is not working for the Company

INTEREST(9M)

At CAD 0.38 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at CAD 98.68 MM

ROCE(HY)

Lowest at 9.28%

RAW MATERIAL COST(Y)

Grown by 8.94% (YoY

CASH AND EQV(HY)

Lowest at CAD 150.66 MM

DEBT-EQUITY RATIO (HY)

Highest at -9.31 %

PRE-TAX PROFIT(Q)

Lowest at CAD 16.78 MM

NET PROFIT(Q)

Lowest at CAD 13.09 MM

Here's what is working for Pason Systems, Inc.

Dividend Payout Ratio

Highest at 77.43%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 16.06 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Pason Systems, Inc.

Interest

At CAD 0.38 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 98.68 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Pre-Tax Profit

Lowest at CAD 16.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 13.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Cash and Eqv

Lowest at CAD 150.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -9.31 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales