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

With ROE of 15.73%, it has a very attractive valuation with a 1.96 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 -6.33%, its profits have risen by 6.8% ; the PEG ratio of the company is 1.8

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you buy?

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.

0.31%

0.50

29.36%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.76%

EBIT Growth (5y)

129.85%

EBIT to Interest (avg)

73.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.84

Tax Ratio

24.79%

Dividend Payout Ratio

76.82%

Pledged Shares

Institutional Holding

1.03%

ROCE (avg)

31.29%

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

2.07

EV to EBIT

10.98

EV to EBITDA

6.46

EV to Capital Employed

2.26

EV to Sales

2.20

PEG Ratio

Dividend Yield

ROCE (Latest)

20.62%

ROE (Latest)

12.68%

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 Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 81.05%

INVENTORY TURNOVER RATIO(HY)

Highest at 12.79 times

-16What is not working for the Company

ROCE(HY)

Lowest at 12.74%

RAW MATERIAL COST(Y)

Grown by 10.77% (YoY

CASH AND EQV(HY)

Lowest at CAD 144.94 MM

DEBT-EQUITY RATIO (HY)

Highest at -11.99 %

PRE-TAX PROFIT(Q)

Lowest at CAD 17.44 MM

NET PROFIT(Q)

Lowest at CAD 13.34 MM

EPS(Q)

Lowest at CAD 0.16

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

Inventory Turnover Ratio

Highest at 12.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 81.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 15.68 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.

Pre-Tax Profit

Lowest at CAD 17.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD 17.44 MM has Fallen at -28.59%

over average net sales of the previous four periods of CAD 24.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 13.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Net Profit

At CAD 13.34 MM has Fallen at -31.59%

over average net sales of the previous four periods of CAD 19.5 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Cash and Eqv

Lowest at CAD 144.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -11.99 %

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 10.77% (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