# Pason Systems Inc. (PSI.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Energy Equipment & Services. Price C$14.70, market value C$1.1 billion.

## Valuation
- **P/E (trailing): 23.7×** (5-yr avg 14.5×, 3-yr avg 12.6×). Pason Systems Inc. trades at 23.7× trailing earnings, well above its own five-year average of 14.5×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 13.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.8×**. Each dollar of revenue is priced at 2.8×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 8.1×**. Enterprise value is 8.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.2%** (5-yr avg 6.6%). Free cash flow equals 4.2% of the market value, below its five-year average of 6.6%, so the shares are pricier on cash than usual.
- **Earnings yield: 4.2%**. The inverse of the P/E: 4.2% of the price is earned each year.

## Profitability
- **Gross margin: 43.6%**. Pason Systems Inc. keeps 43.6% of revenue after the direct cost of what it sells.
- **Operating margin: 18.1%**. 18.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 12.7%**. 12.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.0%**. 11.0% on shareholders' equity is solid.
- **Return on invested capital: 12.6%**. Return on all capital, debt included, is 12.6%.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): 1.2%** (3-yr 7.8%/yr, 5-yr 21.8%/yr). Revenue grew 1.2% over the last year, against 21.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -55.3%** (3-yr -19.4%/yr, 5-yr 61.9%/yr). Earnings per share fell 55.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -1.9%/yr**. Free cash flow has compounded at -1.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.06**. Debt is 0.06 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Pason Systems Inc. holds more cash than debt.
- **Interest coverage: 196.5×**. Operating profit covers interest 196.5× over, a safe margin.
- **Current ratio: 1.98** (quick 1.77). Current assets cover the next year's liabilities 1.98 times.
- **Altman Z-score: 7.97**. A Z-score of 7.97 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.54%** (C$0.52 per share, trailing). Pason Systems Inc. yields 3.54%, an income-level yield.
- **Payout ratio: 77%** (84% of free cash flow). 77% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 1.6%/yr** (1-yr 0.0%). The dividend has grown 1.6% a year over five years.
- **Shareholder yield: 5.1%**. Dividends plus net buybacks return 5.1% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover Pason Systems Inc.; the consensus is buy, with an average price target of C$16.10 (+10% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 29.2%** (YTD 25.1%, 3-mo 7.2%). The shares are up 29.2% over twelve months including dividends.
- **From 52-week high: -5.0%** (29.7% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 0.49** (volatility 31%). Beta of 0.49 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PSI.TO · Page: https://foliofundamentals.com/stocks/psi.to

Not investment advice.