PHX Energy Services Corp. (PHX) 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

PHX Energy Services Corp.

High Arctic Energy Services, Inc.

Major Drilling Group International, Inc.

Cathedral Energy Services Ltd.

Precision Drilling Corp.

Akita Drilling Ltd.

Ensign Energy Services, Inc.

Western Energy Services Corp.

Sonoro Energy Ltd.

Why is PHX Energy Services Corp. ?

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 28.56% and Operating profit at 83.80%

With ROE of 19.44%, it has a very attractive valuation with a 2.35 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 24.15%, its profits have fallen by -24.1%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to PHX Energy Services Corp. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is PHX Energy Services Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PHX Energy Services Corp.

24.15%

0.54

36.68%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.56%

EBIT Growth (5y)

83.80%

EBIT to Interest (avg)

9.69

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

2.69

Tax Ratio

21.95%

Dividend Payout Ratio

66.34%

Pledged Shares

Institutional Holding

4.56%

ROCE (avg)

18.74%

ROE (avg)

22.76%

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

2.35

EV to EBIT

25.42

EV to EBITDA

6.47

EV to Capital Employed

2.12

EV to Sales

0.82

PEG Ratio

Dividend Yield

ROCE (Latest)

8.32%

ROE (Latest)

19.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 9.77 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 101.83%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 61.71 MM

ROCE(HY)

Lowest at 19.02%

DEBT-EQUITY RATIO (HY)

Highest at 33.07 %

RAW MATERIAL COST(Y)

Grown by 21.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.33 times

OPERATING PROFIT MARGIN(Q)

Lowest at 11.01 %

PRE-TAX PROFIT(Q)

At CAD 11 MM has Fallen at -32.84%

NET PROFIT(Q)

At CAD 8.94 MM has Fallen at -34.67%

Here's what is working for PHX Energy Services Corp.

Inventory Turnover Ratio

Highest at 9.77 times and Grown

In each half year 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 101.83%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 17.79 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 PHX Energy Services Corp.

Operating Cash Flow

Lowest at CAD 61.71 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 33.07 % and Grown

In each half year 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

Operating Profit Margin

Lowest at 11.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CAD 11 MM has Fallen at -32.84%

over average net sales of the previous four periods of CAD 16.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 8.94 MM has Fallen at -34.67%

over average net sales of the previous four periods of CAD 13.68 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 4.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 21.67% (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

Non Operating Income

Highest at CAD 0.88 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income