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. While PD is still in line with the averages on profitability rating, there are concerns on its financial health. PD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
PD had positive earnings in the past year.
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.
PD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PD has a Return On Assets (3.74%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.44%, PD is doing worse than 62.07% of the companies in the same industry.
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
With a Profit Margin value of 5.84%, PD perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of PD has grown nicely.
PD has a better Gross Margin (33.81%) 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.
Compared to 1 year ago, PD has less shares outstanding
Compared to 5 years ago, PD has less shares outstanding
PD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that PD is in the distress zone and has some risk of bankruptcy.
PD has a worse Altman-Z score (0.90) 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.
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 | 0.9 |
ROIC/WACC0.74
WACC8.49%
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.
Looking at the Quick ratio, with a value of 0.82, PD is doing worse than 72.41% of the companies in the same industry.
| 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.
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.
The Revenue has decreased by -1.90% in the past 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
The Earnings Per Share is expected to grow by 20.67% on average over the next years. This is a very strong growth
PD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 9.85, the valuation of PD can be described as reasonable.
PD's Price/Earnings ratio is in line with the industry average.
PD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.
A Price/Forward Earnings ratio of 7.29 indicates a rather cheap valuation of PD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PD is on the same level as its industry peers.
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
PD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PD is cheaper than 72.41% 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 | 3.61 | ||
| EV/EBITDA | 3.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.01
PEG (5Y)0.13
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 (6/11/2025, 7:00:00 PM)
69.06
+1.2 (+1.77%)
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 | 3.44 |
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 | 0.9 |
F-Score6
WACC8.49%
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%