Pason Systems (TSX:PSI) is a Calgary-based energy services and technology company. Its shares have plunged 17% month-over-month as of close on March 30. That has pushed this stock down 20% in the year-to-date period in 2023. I’m looking to take advantage of Pason Systems’ recent bout of turbulence. Let’s jump in.
This company released its fourth quarter and full-year fiscal 2022 results on March 2, 2023. In Q4 2022, Pason Systems reported total revenues of $94.4 million – up 50% from the $62.8 million it delivered in the previous year. Meanwhile, adjusted EBITDA soared 102% to $48.9 million.
For the full year, Pason Systems delivered total revenue growth of 62% to $334 million. Moreover, adjusted EBITDA increased 120% to $159 million. Funds flow from operations (FFO) was reported at $134 million or $1.63 per diluted share – up from $67.7 million or $0.82 per diluted share for the full-year in fiscal 2021. Cash from operating activities climbed 60% to $104 million.
Pason President and CEO Jon Faber praised the company’s fiscal 2022 performance. He pointed out that the company was able to “outperform the underlying growth in industry activity with a 50% increase in consolidated revenue”. Indeed, its North American business achieved its highest quarterly revenue per Industry Day at $890 – up 16% from the prior year.
This TSX stock currently possesses an attractive price-to-earnings ratio of 9.2. Moreover, it last had a Relative Strength Index (RSI) of 37, putting it just outside of technically oversold territory. Pason also offers a quarterly dividend of $0.12 per share. That represents a 3.9% yield.