Investment Talk: Pulse Seismic Inc

Sound bite for Twitter is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably reasonable, but above the median. Debt Ratios are very good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth restarting. See my spreadsheet on Pulse Seismic Inc.

Is it a good company at a reasonable price? The positives on this stock are that the Debt Ratios are good, as are the DPR ratios. Another positive is that the dividends are back and there are dividend increases. They did not do that well in 2024, but they did do quite well in the first quarter of this year. A negative is that the stock price is higher currently than it has been 2017. Caution is called for as this is a small company that analysts have given up following. Stock is also cyclical. I thought the testing is showing the stock price as reasonable, but above the median, but it could be on the expensive site.

I do not own this stock of Pulse Seismic Inc (TSX-PSD, OTC-PLSDF). I wanted to invest some extra money in a dividend paying small cap. I used a Stock Filter. I asked for companies that were priced between $1 and $5.50 and had a yield between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I chose to invest in but I found it of interest so I am following it.

When I was updating my spreadsheet, I noticed that this company has done very well in the first quarter of 2025. For example, Revenue was up 60% comparing last 12 months and 2024 values. Same with Earnings which are up some 300% and cash flow up 43%. I note that the Chairman owns around 22% of the outstanding shares.

If you had invested in this company in December 2014, for $1,002.06 you would have bought 342 shares at $2.93 per share. In December 2024, after 10 years you would have received $230.85 in dividends. The stock would be worth $817.38. Your total return would have been $1,048.23. This would be a total return of 0.49% per year with 2.02% from capital loss and 2.51% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$2.93	$1,002.06	342	10	$230.85	$817.38	$1,048.23

If you had invested in this company in December 2015, for $1,001.22 you would have bought 451 shares at $2.22 per share. In July 2025, after lightly less than10 years you would have received $398.01 in dividends. The stock would be worth $1,578.52. Your total return would have been $1,985.53. This would be a total return of 6.79% per year with 4.72% from capital loss and 2.08% from dividends. This stock is up some 47% this year.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$2.22	$1,001.22	451	10	$398.01	$1,587.52	$1,985.53

The current dividend yield is moderate with dividend growth restarting. The current dividend yield is moderate (2% to 4% ranges) at 2.05%. The 5 year and historical median dividend yields are moderate at 2.18% and 2.16%. The 10 year median dividend yield is low (below 1%) at just 0.35%. That is because there were no dividends for a number years within the 10 year period. Dividends were cut in 2016 and then restarted in 2021. There have been dividend increases since then and dividends are 12.5% below what they were in 2014. The last dividend increase was in 2025 and it was for 13.7%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is too high at 155% with 5 year coverage at 88%, however, the DPR for AEPS is more important. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 39% with 5 year coverage at 27%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 19% with 5 year coverage at 22%. The DPR for 2024 for Free Cash Flow (FCF) is good at 25% with 5 year coverage at 15%, but no agreement on what FCF is.

Item	Cur	5 Years
EPS	155.36%	88.30%
AEPS	38.84%	26.60%
CFPS	19.27%	21.95%
FCF	25.33%	14.98%

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00. The Liquidity Ratio for 2024 is good at 5.08 and 3.72 currently. The Debt Ratio for 2024 is good at 20.41 and 24.15 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.18 and 0.18 and currently at 1.34 and 0.34.

Type	Year End	Ratio Curr
Lg Term R	0.00	0.00
Intang/GW	0.08	0.04
Liquidity	5.08	3.72
Liq. + CF	8.97	6.96
Debt Ratio	20.41	24.15
Leverage	1.18	1.34
D/E Ratio	0.18	0.34

The Total Return per year is shown below for years of 5 to 26 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	0.00%	7.94%	4.26%	3.68%
2014	10	-3.04%	0.49%	-2.02%	2.51%
2009	15	0.00%	7.96%	4.47%	3.49%
2004	20	0.81%	5.63%	1.60%	4.03%
1999	25	0.77%	9.77%	4.75%	5.02%
1998	26		13.31%	6.87%	6.44%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 2.48, 4.43 and 6.38. The corresponding 10 year ratios are negative and so useless. The corresponding historical ratios are 2.48, 4.50 and 6.04. The current ratio is 12.18 based on a stock price of $3.41 and EPS for the last 12 months of $0.28. The current is above the high ratios of the 5 year and historical median ratios. This stock price testing suggests that the stock price is relatively expensive. Problems with this testing is that the ratios are very low due to lots of earning losses over the past 10 years.

I also have Cash Flow from Operations (CFFO) data. The 5-year low, median, and high median Price/ Cash Flow from Operations Ratios are 6.64, 8.18 and 9.12. The corresponding 10 year ratios are 6.70, 8.52 and 10.09. The corresponding historical ratios are 4.92, 7.04 and 9.15. The current ratio is 8.97 based on a stock price of $3.41 and AESP for the last 12 months of $0.38. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $1.86. The 10-year low, median, and high median Price/Graham Price Ratios are 0.88, 1.28 and 1.64. The current P/GP Ratio is 1.83 based on a stock price of $3.41. The current ratio is above the high ratio for the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. I used the CFFO in the GP formula and the problem with the EPS is that there are too many years of earning losses to be sure of the calculations using EPS.

I get a 10-year median Price/Book Value per Share Ratio of 3.57. The current P/B Ratio is 8.44 based on a Book Value of $20.53M, Book Value per Share of $0.40 and a stock price of $3.41. The current ratio is 137% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. (The reason why this is testing as expensive is because Book Value has fallen in the last 3 years.)

I get a 10-year median Price/Cash Flow per Share Ratio of 8.43. The current ratio is 8.51 based on Cash Flow for the last 12 months of $20.3M, Cash Flow per Share of $0.40 and a stock price of $3.41. The current ratio is 1% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. (The reason for the good result here is that Cash Flow is up over the past 12 months ending in the first quarter of 2025 compared to Cash Flow over the 12 month period ending December 2024.)

I get an historical median dividend yield of 2.16%. The current dividend yield is 2.05% based on dividends of $0.07 and a stock price of $3.41. The current dividend yield is 5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 0.35%. The current dividend yield is 2.05% based on dividends of $0.07 and a stock price of $3.41. The current dividend yield is 481% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This is not a good test as dividends were zero over most of the past 10 years.

I get a 4 year median dividend yield of 2.27%. The current dividend yield is 2.05% based on dividends of $0.07 and a stock price of $3.41. The current dividend yield is 9% below the 4year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is a better test as dividends were paid over the past 4 year. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10-year median Price/Sales (Revenue) Ratio is 5.54. The current ratio is 4.64 based on Revenue for the last 12 months of $37,361, Revenue per Share of $0.74 and a stock price of $3.41. The current ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. (I wonder how good this test is because revenue jumps around a lot for the stock. See chart below. For the year 2025, the values are for the last 12 months.

Year	2020	2021	2022	2023	2024	2025
Revenue	$11.349	$49.150	$9.570	$39.127	$23.379	$37,361
Change	-53.02%	333.08%	-80.53%	308.85%	-40.25%	59.81%

Results of stock price testing is that the stock price is probably reasonable, but above the median. I worry about some of the tests. A number of the tests that are solid, like Price/ Cash Flow from Operations Ratios, Price/Graham Price, Price/Book Value per Share Ratio and 4 year median dividend yield tests, say the stock price is either reasonable and above the median or expensive.

When I look at analysts’ recommendations, I find Hold (1). The consensus would be a Hold. The 12 month stock price consensus is $2.10. There is only one price consensus. The consensus stock price of $2.10 implies a total loss of 36.36% with a capital loss of $38.42 and dividends of $2.05% based on a current stock price of $3.41. (This consensus stock price is not out of bounds of reality. The stock price was below this price from 2018 to 2023. Also, I only found one site that had any analyst recommendations. Most sites that show analyst recommendations had no information.)

The last entry on Stock Chase for this stock was 2018. Analyst said there was not enough value in the stock to buy. Aditya Raghunath on Motley Fool in December 2024 said buying this penny stock may give in outsized gains in 2025. Karen Thomas on Motley Fool said in January 2023 that if it was cheaper she would buy. Unfortunately, the stock price has just gone up from that time. The company put out a press release viaGlobal Newswire about their fourth quarter of 2024. The company put out a press release via Global Newswire about their results for the first quarter of 2025.

Simply Wall Street via Yahoo Finance looks at this stock and who owns its shares. Simply Wall Street has 1 warning out on this stock of unstable dividend track record. (They are right about that.)

Pulse Seismic Inc is a Canadian company which acts as a provider of seismic data to the energy sector in western Canada. The company is engaged in the acquisition, marketing, and licensing of 2D and 3D seismic data to the energy sector. It offers the full suite of project management services including On-site professional project management, experienced cost estimation services, daily reporting to clients and detailed project cost tracking, procurement of subcontractors to ensure regulatory compliance, and others. Its web site is here Pulse Seismic Inc.

The last stock I wrote about was about was Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) … learn more. The next stock I will write about will be TECSYS Inc (TSX-TCS, OTC-TCYSF) … learn more on Friday, July 25, 2025 around 5 pm. Tomorrow on my other blog I will write about Travel Insurance…. learn more on Thursday, July 24, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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