PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - Toronto Stock Exchange - CA74022D4075 - Common Stock - Currency: CAD
Taking everything into account, PD scores 4 out of 10 in our fundamental rating. PD was compared to 29 industry peers in the Energy Equipment & Services industry. PD has a medium profitability rating, but doesn't score so well on its financial health evaluation. PD is valued quite cheap, while showing a decent growth score. This is a good combination!
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 (3.74%) which is comparable to the rest of the 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.
The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin (5.84%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PD has grown nicely.
PD has a better Operating Margin (11.19%) 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.
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
PD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PD has less shares outstanding
The number of shares outstanding for PD has been reduced compared to 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 0.89. This is a bad value and indicates that PD is not financially healthy and even has some risk of bankruptcy.
PD's Altman-Z score of 0.89 is on the low side compared to the rest of the industry. PD is outperformed by 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.
The Debt to FCF ratio of PD (3.36) is better than 65.52% 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.
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 | 0.89 |
ROIC/WACC0.74
WACC8.48%
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.
PD has a Current ratio of 0.91. This is amonst the worse of the industry: PD underperforms 86.21% of its industry peers.
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%.
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 -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.
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
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
The Price/Earnings ratio is 9.68, which indicates a very decent valuation of PD.
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 26.59.
The Price/Forward Earnings ratio is 7.16, which 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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
75.86% of the companies in the same industry are more expensive than PD, based on the Enterprise Value to EBITDA ratio.
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 | 3.54 | ||
| EV/EBITDA | 3.38 |
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.
A more expensive valuation may be justified as PD's earnings are expected to grow with 23.41% in the coming years.
PEG (NY)0.99
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 (6/10/2025, 7:00:00 PM)
67.86
+2.37 (+3.62%)
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 Cap917.47M
Analysts80
Price Target103.84 (53.02%)
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 | 9.68 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.49 | ||
| P/FCF | 3.54 | ||
| P/OCF | 1.91 | ||
| P/B | 0.54 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)7.01
EY10.33%
EPS(NY)9.47
Fwd EY13.96%
FCF(TTM)19.14
FCFY28.21%
OCF(TTM)35.5
OCFY52.31%
SpS138.38
BVpS125.44
TBVpS124.44
PEG (NY)0.99
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%