Pulse Seismic Inc

On my other blog is some comment on "Tax Hikes Perversities". See comments blog.

I do not own this stock of Pulse Seismic Inc. (TSX-PSD). This company did not do well from 2006 to 2010 when the EPS was negative. They prudently cancelled dividends for 2009 and 2010. They restated the dividend payments in the later part of 2011. They increased the dividend after the 1st quarter of 2012 by 60%. However, the dividends are still considerably smaller than those paid in 2008.

Total returns over the past 5 were a negative 2.2%. There was a capital loss of 5.8% and dividends were 3.6%. Total returns over the past 10 years were better. The total return was 8.5% per year. There was a capital gain of 3.6% per year and dividends income was 4.9% per year of this total return. Dividends were almost 60% of the total return over the past 10 years.

The years of EPS losses, started when revenue declined sharply. After another sharp decline in 2009, revenues started growing again. There is a difference in revenue and revenue per share has shares have increased in the past due to business acquisitions. Shares are up some 6.6% per year over the past 5 years and 14% per year over the past 10 years.

Revenue only grew at 3% per year over the past 5 years. The past 10 years was better with revenue growth at 7.7%. However, revenue per share has not grown. The Revenue per Share has declined by 3.5% per year over the past 5 years and by 5.9% over the past 10 years.

Cash Flow per shares is better over the past 5 years with a 3.5% per year growth. However, Cash Flow per share has declined by 6.4% per year over the past 10 years. Cash Flow increased quite nicely in 2011 after a couple of years of decline.

The book value per share has declined by 4.4% per year over the past 5 years. There was no increase in book value per share over the past 10 years. You tend to get book value declining when dividends are paid but there are no earnings.

Generally speaking, the Liquidity Ratio is fine for this stock. The current Liquidity Ratio is 1.99. The Liquidity Ratio for the end of 2011 was a bit low at 1.17. Generally speaking they do have a good steady cash flow.

The Debt Ratio has always been extremely good with the current one at 2.38. The current Leverage and Debt/Equity Ratios are also very good, with current ones at 1.72 and 0.72.

The Return on Equity has never been great, but there was no return (that is not earnings) for a few years until we hit 2011. The ROE for 2011 is just 6.3%. There is no difference between comprehensive income and net income on this stock and this is good.

The management certainly feels good about the future since they restarted the dividends in 2011 and did a good increase in 2012. However, analyst feel that they will do well is earnings this year, but that earnings will decline sharply in 2013. They sell seismic data to oil and gas companies in Western Canada. Their future likely depends on the gas industry and gas prices are probably at historical lows.

Pulse Data Inc. is a provider of 2D and 3D seismic library data and is based in Calgary, Alberta. Pulse owns the second-largest licensable seismic data library in western Canada. Pulse"s 2D and 3D seismic data library extends over the Western Canada Sedimentary Basin, plus selected areas of the U.S. Rocky Mountains region and northern Canada, with a particular focus on active exploration areas. Its web site is here Pulse Seismic. See my spreadsheet at psd.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.