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. PD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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.
In the past 5 years PD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PD (3.74%) is comparable to the rest of the industry.
PD has a worse Return On Equity (6.44%) 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.
The Average Return On Invested Capital over the past 3 years 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.
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.
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.
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.
The number of shares outstanding for PD has been reduced compared to 1 year ago.
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 Altman-Z score of 0.90. This is in the lower half of the industry: PD underperforms 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.
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 in line with 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.
PD has a Current ratio of 0.91. This is amonst the worse of the industry: PD underperforms 86.21% of its industry peers.
A Quick Ratio of 0.82 indicates that PD may have some problems paying its short term obligations.
The Quick ratio of PD (0.82) is worse than 72.41% of its industry peers.
| 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.
PD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.97% yearly.
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
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
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
PD is valuated reasonably with a Price/Earnings ratio of 9.85.
PD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PD to the average of the S&P500 Index (26.60), we can say PD is valued rather cheaply.
PD is valuated cheaply with a Price/Forward Earnings ratio of 7.29.
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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PD is valued a bit 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
PD does not give a dividend.
| 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%