PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - Toronto Stock Exchange - CA74022D4075 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to PD. PD was compared to 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. PD may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years PD had a positive operating cash flow.
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 has a Return On Invested Capital of 6.31%. This is comparable 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 last Return On Invested Capital (6.31%) for PD is above the 3 year average (5.10%), which is a sign of increasing profitability.
| 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.
Looking at the Operating Margin, with a value of 11.19%, PD is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
In the last couple of years the Operating Margin of PD has grown nicely.
With a decent Gross Margin value of 33.81%, PD is doing good in the industry, outperforming 79.31% of the companies in the same industry.
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
PD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
PD has an Altman-Z score of 0.88. This is a bad value and indicates that PD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.88, PD is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
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.
PD has a Debt to FCF ratio of 3.36. This is in the better half of the industry: PD outperforms 65.52% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that PD is not too dependend on debt financing.
PD's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. PD outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.75
WACC8.47%
2.3 Liquidity
PD has a Current Ratio of 0.91. This is a bad value and indicates that PD is not financially healthy enough and could expect problems in meeting 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.
PD has a Quick Ratio of 0.91. This is a bad value and indicates that PD is not financially healthy enough and could expect problems in meeting its short term obligations.
PD has a Quick ratio of 0.82. This is in the lower half of the industry: PD underperforms 72.41% 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 -51.22%.
Measured over the past years, PD shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.97% on average per year.
Looking at the last year, PD shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last year.
Measured over the past years, PD shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
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
PD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.67% yearly.
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.
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 9.34 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.
Compared to an average S&P500 Price/Earnings ratio of 26.59, PD is valued rather cheaply.
The Price/Forward Earnings ratio is 6.91, which indicates a rather cheap valuation of PD.
The rest of the industry has a similar Price/Forward Earnings ratio as PD.
PD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 6.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PD is valued a bit cheaper than 79.31% of the companies in the same industry.
PD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PD is cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.42 | ||
| EV/EBITDA | 3.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PD's earnings are expected to grow with 23.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.12
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 (6/6/2025, 7:00:00 PM)
65.49
+2.23 (+3.53%)
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 Cap885.42M
Analysts80
Price Target103.84 (58.56%)
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 | 9.34 | ||
| Fwd PE | 6.91 | ||
| P/S | 0.47 | ||
| P/FCF | 3.42 | ||
| P/OCF | 1.84 | ||
| P/B | 0.52 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 3.35 |
EPS(TTM)7.01
EY10.7%
EPS(NY)9.47
Fwd EY14.47%
FCF(TTM)19.14
FCFY29.23%
OCF(TTM)35.5
OCFY54.21%
SpS138.38
BVpS125.44
TBVpS124.44
PEG (NY)0.96
PEG (5Y)0.12
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 | 0.88 |
F-Score6
WACC8.47%
ROIC/WACC0.75
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%