PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - CA74022D4075 - Common Stock
79.24 CAD
-1.65 (-2.04%)
We assign a fundamental rating of 4 out of 10 to PD. PD was compared to 27 industry peers in the Energy Equipment & Services industry. PD has only an average score on both its financial health and profitability. PD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PD was profitable.
PD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PD reported negative net income in multiple years.
PD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PD has a Return On Assets (3.82%) which is in line with its industry peers.
PD has a Return On Equity (6.31%) which is comparable to the rest of the industry.
PD has a Return On Invested Capital (6.21%) which is in line with its industry peers.
PD had an Average Return On Invested Capital over the past 3 years of 5.10%. This is significantly below the industry average of 11.19%.
The 3 year average ROIC (5.10%) for PD is below the current ROIC(6.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROIC | 6.21% |
ROA(3y)4.05%
ROA(5y)0.27%
ROE(3y)7.4%
ROE(5y)-0.16%
ROIC(3y)5.1%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PD (5.67%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PD has grown nicely.
PD has a better Operating Margin (10.90%) than 70.37% of its industry peers.
PD's Operating Margin has improved in the last couple of years.
PD has a better Gross Margin (33.64%) than 77.78% of its industry peers.
PD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% |
OM growth 3YN/A
OM growth 5Y21.52%
PM growth 3YN/A
PM growth 5Y68.67%
GM growth 3Y8.2%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PD is destroying value.
The number of shares outstanding for PD has been reduced compared to 1 year ago.
The number of shares outstanding for PD has been reduced compared to 5 years ago.
PD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that PD is in the distress zone and has some risk of bankruptcy.
PD's Altman-Z score of 1.07 is on the low side compared to the rest of the industry. PD is outperformed by 70.37% of its industry peers.
The Debt to FCF ratio of PD is 3.44, which is a good value as it means it would take PD, 3.44 years of fcf income to pay off all of its debts.
PD has a Debt to FCF ratio of 3.44. This is in the better half of the industry: PD outperforms 66.67% of its industry peers.
PD has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
PD has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.72
WACC8.62%
2.3 Liquidity
PD has a Current Ratio of 1.01. This is a normal value and indicates that PD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.01, PD is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
A Quick Ratio of 0.90 indicates that PD may have some problems paying its short term obligations.
The Quick ratio of PD (0.90) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
PD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.17%.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
Looking at the last year, PD shows a decrease in Revenue. The Revenue has decreased by -3.26% in the last year.
PD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
EPS 1Y (TTM)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
3.2 Future
Based on estimates for the next years, PD will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.54% on average per year.
PD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.15% yearly.
EPS Next Y-3.77%
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
EPS Next 5Y16.54%
Revenue Next Year-4.35%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.64%
Revenue Next 5Y-0.15%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.93 indicates a reasonable valuation of PD.
Compared to the rest of the industry, the Price/Earnings ratio of PD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PD to the average of the S&P500 Index (26.84), we can say PD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.80, the valuation of PD can be described as reasonable.
PD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, PD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PD is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PD indicates a rather cheap valuation: PD is cheaper than 81.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 3.46 |
4.3 Compensation for Growth
PD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
No dividends for PD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:PD (9/3/2025, 7:00:00 PM)
79.24
-1.65 (-2.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner ChangeN/A
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap1.06B
Analysts80
Price Target98.92 (24.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)384.5%
Min EPS beat(2)-11.37%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)178.94%
Min EPS beat(4)-46.47%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)113%
EPS beat(12)5
Avg EPS beat(12)75.63%
EPS beat(16)6
Avg EPS beat(16)47.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-4.3%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.48%
Revenue beat(12)4
Avg Revenue beat(12)-2%
Revenue beat(16)7
Avg Revenue beat(16)6.18%
PT rev (1m)-4.74%
PT rev (3m)-4.74%
EPS NQ rev (1m)-9.49%
EPS NQ rev (3m)-49.17%
EPS NY rev (1m)-12.31%
EPS NY rev (3m)-12.31%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-5.3%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.57 | ||
| P/FCF | 4.85 | ||
| P/OCF | 2.33 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 3.46 |
EPS(TTM)6.64
EY8.38%
EPS(NY)7.34
Fwd EY9.26%
FCF(TTM)16.32
FCFY20.6%
OCF(TTM)33.96
OCFY42.86%
SpS138.45
BVpS124.38
TBVpS123.54
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROCE | 8.62% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 6.37% | ||
| OM | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% | ||
| FCFM | 11.79% |
ROA(3y)4.05%
ROA(5y)0.27%
ROE(3y)7.4%
ROE(5y)-0.16%
ROIC(3y)5.1%
ROIC(5y)N/A
ROICexc(3y)5.22%
ROICexc(5y)N/A
ROICexgc(3y)5.25%
ROICexgc(5y)N/A
ROCE(3y)7.08%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y30.66%
ROICexc growth 3YN/A
ROICexc growth 5Y30.81%
OM growth 3YN/A
OM growth 5Y21.52%
PM growth 3YN/A
PM growth 5Y68.67%
GM growth 3Y8.2%
GM growth 5Y1.06%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 76.66% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 89.15% | ||
| Profit Quality | 208% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.07 |
F-Score6
WACC8.62%
ROIC/WACC0.72
Cap/Depr(3y)70.76%
Cap/Depr(5y)51.73%
Cap/Sales(3y)11.5%
Cap/Sales(5y)9.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
EPS Next Y-3.77%
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
EPS Next 5Y16.54%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
Revenue Next Year-4.35%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.64%
Revenue Next 5Y-0.15%
EBIT growth 1Y-8.52%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year119%
EBIT Next 3Y28.23%
EBIT Next 5Y16.03%
FCF growth 1Y6.23%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y10.84%
OCF growth 3Y51.29%
OCF growth 5Y10.84%