PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - Toronto Stock Exchange - CA74022D4075 - Common Stock - Currency: CAD
PD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. 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.
The reported net income has been mixed in the past 5 years: PD reported negative net income in multiple 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 in line with its industry peers.
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.
The Return On Invested Capital of PD (6.31%) is comparable to the rest of the industry.
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
With a Profit Margin value of 5.84%, PD perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
In the last couple of years the Profit Margin of PD has grown nicely.
PD has a Operating Margin of 11.19%. This is in the better half of the industry: PD outperforms 72.41% of its industry peers.
PD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.81%, PD is in the better half of the industry, outperforming 79.31% 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.
PD has less shares outstanding than it did 1 year ago.
PD has less shares outstanding than it did 5 years ago.
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.
The Altman-Z score of PD (0.90) 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.
Looking at the Debt to FCF ratio, with a value of 3.36, PD is in the better half of 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 has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.74
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PD may have some problems paying its short term obligations.
The Current ratio of PD (0.91) is worse than 86.21% of its industry peers.
A Quick Ratio of 0.82 indicates that PD may have some problems paying its short term obligations.
PD's Quick ratio of 0.82 is on the low side compared to the rest of the industry. PD is outperformed by 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
PD shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
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
Based on estimates for the next years, PD will show a very strong growth in Earnings Per Share. The EPS will grow by 20.67% on average per year.
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.
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
With a Price/Earnings ratio of 9.68, the valuation of PD can be described as very reasonable.
PD's Price/Earnings ratio is in line with the industry average.
PD is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.16, the valuation of PD can be described as very cheap.
PD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PD to the average of the S&P500 Index (22.39), we can say PD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 7.16 |
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.
86.21% of the companies in the same industry are more expensive than PD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.55 | ||
| EV/EBITDA | 3.41 |
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.
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 (6/12/2025, 7:00:00 PM)
67.87
-1.19 (-1.72%)
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 Cap917.60M
Analysts80
Price Target103.84 (53%)
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 | 3.55 | ||
| P/OCF | 1.91 | ||
| P/B | 0.54 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 3.41 |
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 | 0.9 |
F-Score6
WACC8.51%
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%