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 28 industry peers in the Energy Equipment & Services industry. PD has an average financial health and profitability rating. PD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PD was profitable.
PD had a positive operating cash flow in the past year.
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 better Return On Assets (8.42%) than 64.29% of its industry peers.
PD's Return On Equity of 14.68% is fine compared to the rest of the industry. PD outperforms 67.86% of its industry peers.
PD has a worse Return On Invested Capital (6.86%) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 14.68% | ||
| ROIC | 6.86% |
ROA(3y)0.57%
ROA(5y)-0.44%
ROE(3y)0.37%
ROE(5y)-1.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PD (12.53%) is better than 85.71% of its industry peers.
The Operating Margin of PD (12.68%) is better than 71.43% of its industry peers.
PD's Operating Margin has improved in the last couple of years.
The Gross Margin of PD (35.45%) is better than 89.29% of its industry peers.
PD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 12.53% | ||
| GM | 35.45% |
OM growth 3YN/A
OM growth 5Y92.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.24%
GM growth 5Y4.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PD is destroying value.
The number of shares outstanding for PD has been increased compared to 1 year ago.
The number of shares outstanding for PD has been reduced compared to 5 years ago.
PD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that PD is in the distress zone and has some risk of bankruptcy.
PD's Altman-Z score of 1.13 is on the low side compared to the rest of the industry. PD is outperformed by 75.00% of its industry peers.
PD has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as PD would need 3.41 years to pay back of all of its debts.
PD's Debt to FCF ratio of 3.41 is fine compared to the rest of the industry. PD outperforms 60.71% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that PD is somewhat dependend on debt financing.
PD's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. PD outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.85
WACC8.09%
2.3 Liquidity
PD has a Current Ratio of 1.54. This is a normal value and indicates that PD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.54, PD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that PD should not have too much problems paying its short term obligations.
PD's Quick ratio of 1.41 is fine compared to the rest of the industry. PD outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
PD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.61%, which is quite impressive.
The Revenue has decreased by -0.02% in the past year.
Measured over the past years, PD shows a small growth in Revenue. The Revenue has been growing by 4.69% on average per year.
EPS 1Y (TTM)68.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.31%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y27.46%
Revenue growth 5Y4.69%
Sales Q2Q%6.8%
3.2 Future
Based on estimates for the next years, PD will show a small growth in Earnings Per Share. The EPS will grow by 1.64% on average per year.
The Revenue is expected to grow by 1.28% on average over the next years.
EPS Next Y-47.05%
EPS Next 2Y-27.1%
EPS Next 3Y-16.18%
EPS Next 5Y1.64%
Revenue Next Year-0.25%
Revenue Next 2Y1.08%
Revenue Next 3Y1.44%
Revenue Next 5Y1.28%
3.3 Evolution
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
The Price/Earnings ratio is 5.32, which indicates a rather cheap valuation of PD.
Compared to the rest of the industry, the Price/Earnings ratio of PD indicates a rather cheap valuation: PD is cheaper than 89.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. PD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.65, the valuation of PD can be described as reasonable.
Based on the Price/Forward Earnings ratio, PD is valued a bit cheaper than 64.29% of the companies in the same industry.
PD is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.32 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
75.00% 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 a bit cheaper when compared to the industry. PD is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.45 | ||
| EV/EBITDA | 3.58 |
4.3 Compensation for Growth
PD has a very decent profitability rating, which may justify a higher PE ratio.
PD's earnings are expected to decrease with -16.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.1%
EPS Next 3Y-16.18%
5. Dividend
5.1 Amount
No dividends for PD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PRECISION DRILLING CORP
TSX:PD (2/7/2025, 7:00:00 PM)
80.03
-0.8 (-0.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners64.45%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.13B
Analysts82.11
Price Target130.79 (63.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-36.34%
Min EPS beat(2)-65.9%
Max EPS beat(2)-6.79%
EPS beat(4)1
Avg EPS beat(4)53.04%
Min EPS beat(4)-65.9%
Max EPS beat(4)291.93%
EPS beat(8)3
Avg EPS beat(8)16.97%
EPS beat(12)5
Avg EPS beat(12)5.52%
EPS beat(16)7
Avg EPS beat(16)1.48%
Revenue beat(2)0
Avg Revenue beat(2)-5.01%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-2.57%
Revenue beat(4)1
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)0.76%
Revenue beat(8)4
Avg Revenue beat(8)-1.49%
Revenue beat(12)7
Avg Revenue beat(12)9.63%
Revenue beat(16)8
Avg Revenue beat(16)6.47%
PT rev (1m)-1.16%
PT rev (3m)-0.55%
EPS NQ rev (1m)-14.58%
EPS NQ rev (3m)-34.91%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)-2.21%
Revenue NQ rev (3m)-9.03%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.32 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.58 | ||
| P/FCF | 4.45 | ||
| P/OCF | 2.3 | ||
| P/B | 0.68 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)15.04
EY18.79%
EPS(NY)9.25
Fwd EY11.56%
FCF(TTM)17.97
FCFY22.46%
OCF(TTM)34.79
OCFY43.48%
SpS137.96
BVpS117.75
TBVpS116.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 14.68% | ||
| ROCE | 9.53% | ||
| ROIC | 6.86% | ||
| ROICexc | 6.93% | ||
| ROICexgc | 6.97% | ||
| OM | 12.68% | ||
| PM (TTM) | 12.53% | ||
| GM | 35.45% | ||
| FCFM | 13.03% |
ROA(3y)0.57%
ROA(5y)-0.44%
ROE(3y)0.37%
ROE(5y)-1.4%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y110.35%
ROICexc growth 3YN/A
ROICexc growth 5Y110.53%
OM growth 3YN/A
OM growth 5Y92.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.24%
GM growth 5Y4.26%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 77.38% | ||
| Cap/Sales | 12.19% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 88.7% | ||
| Profit Quality | 104.02% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.13 |
F-Score6
WACC8.09%
ROIC/WACC0.85
Cap/Depr(3y)56.38%
Cap/Depr(5y)47.36%
Cap/Sales(3y)10.26%
Cap/Sales(5y)9.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.31%
EPS Next Y-47.05%
EPS Next 2Y-27.1%
EPS Next 3Y-16.18%
EPS Next 5Y1.64%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y27.46%
Revenue growth 5Y4.69%
Sales Q2Q%6.8%
Revenue Next Year-0.25%
Revenue Next 2Y1.08%
Revenue Next 3Y1.44%
Revenue Next 5Y1.28%
EBIT growth 1Y-5.63%
EBIT growth 3YN/A
EBIT growth 5Y101.24%
EBIT Next Year73.6%
EBIT Next 3Y22.26%
EBIT Next 5Y11.43%
FCF growth 1Y1591.52%
FCF growth 3Y18.51%
FCF growth 5Y10.37%
OCF growth 1Y255.43%
OCF growth 3Y30.33%
OCF growth 5Y11.28%