Can I please get your opinion on PHX Energy (PHX). Thanks
Dave
Results were solid, and the company raised its dividend by 33%. 3Q EPS of 38c beat estimates of 31.5c; Revenue of $169.4M beat estimates of $158.7M. EBITDA of $43.5M beat estimates of $32.8M. It was a very solid quarter. The stock is very cheap at 6X earnings, and offers a dividend which yields 9% now and has doubled in the past 16 months (note it did stop dividends entirely in 2016 for four years). The business is highly cyclical but with its customers (energy companies) flush with cash things look good right now. Revenue rose 19% in the quarter to the highest level ever. The balance sheet is fine, with debt at less than 1X cash flow. Insiders own 15%. The stock is only up 10% this year but we think these results and dividend hike will generate more interest.