PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - Toronto Stock Exchange - CA74022D4075 - Common Stock - Currency: CAD
Taking everything into account, PD scores 5 out of 10 in our fundamental rating. PD was compared to 27 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. PD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
PD has a Return On Assets (3.74%) which is comparable to the rest of the industry.
PD has a Return On Equity of 6.44%. This is comparable to the rest of the industry: PD outperforms 48.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.31%, PD is in line with its industry, outperforming 40.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PD is below the industry average of 9.28%.
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 has a Profit Margin (5.84%) which is in line with its industry peers.
PD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.19%, PD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
PD's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 33.81%, PD belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
In the last couple of years the Gross Margin of PD has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PD is destroying value.
Compared to 1 year ago, PD has less shares outstanding
PD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PD has been reduced compared to a year ago.
2.2 Solvency
PD has an Altman-Z score of 0.84. This is a bad value and indicates that PD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, PD is doing worse than 74.07% of the companies in the same industry.
PD has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as PD would need 3.36 years to pay back of all of its debts.
PD's Debt to FCF ratio of 3.36 is in line compared to the rest of the industry. PD outperforms 59.26% of its industry peers.
PD has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, PD perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.76
WACC8.27%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PD may have some problems paying its short term obligations.
PD's Current ratio of 0.91 is on the low side compared to the rest of the industry. PD is outperformed by 88.89% of its industry peers.
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 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
PD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.74%.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.90% in the past year.
The Revenue has been growing slightly by 4.30% on average over the past years.
EPS 1Y (TTM)-51.74%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-16.04%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-9.05%
3.2 Future
The Earnings Per Share is expected to grow by 24.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, PD will show a small growth in Revenue. The Revenue will grow by 0.87% on average per year.
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y24.17%
Revenue Next Year-1.97%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.92%
Revenue Next 5Y0.87%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.61 indicates a reasonable valuation of PD.
PD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.22. PD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.30, which indicates a rather cheap valuation of PD.
PD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PD is cheaper than 74.07% of the companies in the same industry.
PD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PD is valued a bit cheaper than 74.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PD is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.08 | ||
| EV/EBITDA | 3.17 |
4.3 Compensation for Growth
PD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PD has a very decent profitability rating, which may justify a higher PE ratio.
PD's earnings are expected to grow with 23.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.11
EPS Next 2Y13.61%
EPS Next 3Y23.41%
5. Dividend
5.1 Amount
No dividends for PD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:PD (5/2/2025, 7:00:00 PM)
59.66
+0.19 (+0.32%)
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 Cap806.60M
Analysts80
Price Target106.22 (78.04%)
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)-30.27%
Min EPS beat(2)-46.47%
Max EPS beat(2)-14.07%
EPS beat(4)0
Avg EPS beat(4)-33.31%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)2
Avg EPS beat(8)17.7%
EPS beat(12)5
Avg EPS beat(12)12.2%
EPS beat(16)5
Avg EPS beat(16)-3.22%
Revenue beat(2)0
Avg Revenue beat(2)-5.58%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-5.56%
Revenue beat(4)0
Avg Revenue beat(4)-5.29%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.57%
Revenue beat(8)2
Avg Revenue beat(8)-3.53%
Revenue beat(12)5
Avg Revenue beat(12)8.31%
Revenue beat(16)7
Avg Revenue beat(16)5.71%
PT rev (1m)-14.66%
PT rev (3m)-19.72%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-35.65%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)-24.65%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-2.86%
Revenue NY rev (3m)-4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.43 | ||
| P/FCF | 3.08 | ||
| P/OCF | 1.66 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 3.17 |
EPS(TTM)6.93
EY11.62%
EPS(NY)9.47
Fwd EY15.88%
FCF(TTM)19.36
FCFY32.45%
OCF(TTM)35.9
OCFY60.17%
SpS139.93
BVpS126.85
TBVpS125.83
PEG (NY)0.88
PEG (5Y)0.11
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 | 0.84 |
F-Score6
WACC8.27%
ROIC/WACC0.76
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)-51.74%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-16.04%
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y24.17%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-9.05%
Revenue Next Year-1.97%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.92%
Revenue Next 5Y0.87%
EBIT growth 1Y-15.15%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year134.46%
EBIT Next 3Y34.43%
EBIT Next 5Y18.87%
FCF growth 1Y95.91%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y45.11%
OCF growth 3Y51.29%
OCF growth 5Y10.84%