As a cyclical energy services company, PHX will bounce around with the sector, and this makes valuation very cheap, at less than 6X earnings right now, with a 9.33% dividend. Market cap is $390M, down 8% YTD. The balance sheet is fine, with net debt at 0.5X cash flow. It should have a good earnings bounce this year, but consensus calls for lower earnings in 2026. Reflecting its cyclicality, it has lost money in five of the past ten years. Insiders own 11% but have sold a bit this year. Dividend payout ratio is about 40%. The dividend was last raised in November 2023. We would see it interesting for high risk income. It is priced well, and unlike some in the sector its balance sheet is strong. But with the oil sector volatility and recent declines, it is hard to paint a really robust growth picture. No dividend is guaranteed, but its financial position is such that it does not need to cut its dividend. But it has cut/eliminated its dividend in prior cycles (2015, and then the dividend was stopped for 4.5 years starting in 2016).
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