PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - Toronto Stock Exchange - CA74022D4075 - Common Stock - Currency: CAD
Overall PD gets a fundamental rating of 4 out of 10. We evaluated PD against 29 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of PD while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on PD.
1. Profitability
1.1 Basic Checks
In the past year PD was profitable.
In the past year PD had a positive cash flow from operations.
In multiple years PD reported negative net income over the last 5 years.
In the past 5 years PD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.74%, PD perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
The Return On Equity of PD (6.44%) is worse than 62.07% of its industry peers.
PD's Return On Invested Capital of 6.31% is in line compared to the rest of the industry. PD outperforms 41.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PD is significantly below the industry average of 10.36%.
The 3 year average ROIC (5.10%) for PD is below the current ROIC(6.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 6.44% | ||
| ROIC | 6.31% |
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
PD's Profit Margin of 5.84% is in line compared to the rest of the industry. PD outperforms 55.17% of its industry peers.
PD's Profit Margin has improved in the last couple of years.
The Operating Margin of PD (11.19%) is better than 72.41% of its industry peers.
PD's Operating Margin has improved in the last couple of years.
The Gross Margin of PD (33.81%) is better than 79.31% of its industry peers.
PD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 5.84% | ||
| GM | 33.81% |
OM growth 3YN/A
OM growth 5Y21.52%
PM growth 3YN/A
PM growth 5Y68.67%
GM growth 3Y8.2%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PD is destroying value.
PD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PD has less shares outstanding
The debt/assets ratio for PD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that PD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PD (0.89) is worse than 72.41% of its industry peers.
The Debt to FCF ratio of PD is 3.36, which is a good value as it means it would take PD, 3.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.36, PD is doing good in the industry, outperforming 65.52% of the companies in the same industry.
PD has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, PD is in line with its industry, outperforming 51.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.74
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PD may have some problems paying its short term obligations.
With a Current ratio value of 0.91, PD is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.82 indicates that PD may have some problems paying its short term obligations.
The Quick ratio of PD (0.82) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for PD have decreased strongly by -51.22% in the last year.
PD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.97% yearly.
The Revenue has decreased by -1.90% in the past 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)-51.22%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-13.04%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.96%
3.2 Future
The Earnings Per Share is expected to grow by 20.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.10% on average over the next years.
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y20.67%
Revenue Next Year-2.48%
Revenue Next 2Y-0.76%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.1%
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 9.85 indicates a reasonable valuation of PD.
The rest of the industry has a similar Price/Earnings ratio as PD.
PD is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.29 indicates a rather cheap valuation of PD.
PD's Price/Forward Earnings ratio is in line with the industry average.
PD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PD indicates a somewhat cheap valuation: PD is cheaper than 75.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PD is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.61 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
PD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PD's earnings are expected to grow with 23.41% in the coming years.
PEG (NY)1.01
PEG (5Y)0.13
EPS Next 2Y13.61%
EPS Next 3Y23.41%
5. Dividend
5.1 Amount
PD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:PD (6/11/2025, 7:00:00 PM)
69.06
+2.47 (+3.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner ChangeN/A
Ins Owners2.15%
Ins Owner ChangeN/A
Market Cap933.69M
Analysts80
Price Target103.84 (50.36%)
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)0
Avg EPS beat(2)-28.92%
Min EPS beat(2)-46.47%
Max EPS beat(2)-11.37%
EPS beat(4)0
Avg EPS beat(4)-32.63%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)2
Avg EPS beat(8)18.03%
EPS beat(12)5
Avg EPS beat(12)12.42%
EPS beat(16)5
Avg EPS beat(16)-3.05%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-2.41%
Revenue beat(4)0
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.41%
Revenue beat(8)2
Avg Revenue beat(8)-3.14%
Revenue beat(12)5
Avg Revenue beat(12)8.57%
Revenue beat(16)7
Avg Revenue beat(16)5.9%
PT rev (1m)-2.24%
PT rev (3m)-16.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-80.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 7.29 | ||
| P/S | 0.5 | ||
| P/FCF | 3.61 | ||
| P/OCF | 1.95 | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)7.01
EY10.15%
EPS(NY)9.47
Fwd EY13.72%
FCF(TTM)19.14
FCFY27.72%
OCF(TTM)35.5
OCFY51.4%
SpS138.38
BVpS125.44
TBVpS124.44
PEG (NY)1.01
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 6.44% | ||
| ROCE | 8.76% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 6.42% | ||
| OM | 11.19% | ||
| PM (TTM) | 5.84% | ||
| GM | 33.81% | ||
| FCFM | 13.83% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 72.23% | ||
| Cap/Sales | 11.82% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 93.09% | ||
| Profit Quality | 237.04% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.89 |
F-Score6
WACC8.48%
ROIC/WACC0.74
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)-51.22%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-13.04%
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y20.67%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.96%
Revenue Next Year-2.48%
Revenue Next 2Y-0.76%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.1%
EBIT growth 1Y-15.15%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year119%
EBIT Next 3Y28.23%
EBIT Next 5Y16.79%
FCF growth 1Y95.91%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y45.11%
OCF growth 3Y51.29%
OCF growth 5Y10.84%