PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
NYSE:PDS - New York Stock Exchange, Inc. - CA74022D4075 - Common Stock - Currency: USD
PDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. PDS has a medium profitability rating, but doesn't score so well on its financial health evaluation. PDS 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 PDS was profitable.
In the past year PDS had a positive cash flow from operations.
In multiple years PDS reported negative net income over the last 5 years.
In the past 5 years PDS always reported a positive cash flow from operatings.
1.2 Ratios
PDS has a Return On Assets of 3.74%. This is comparable to the rest of the industry: PDS outperforms 52.46% of its industry peers.
PDS has a Return On Equity (6.44%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.31%, PDS is in line with its industry, outperforming 50.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PDS is below the industry average of 8.11%.
The last Return On Invested Capital (6.31%) for PDS 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
PDS has a Profit Margin (5.84%) which is comparable to the rest of the industry.
PDS's Profit Margin has improved in the last couple of years.
PDS has a Operating Margin (11.19%) which is comparable to the rest of the industry.
PDS's Operating Margin has improved in the last couple of years.
PDS's Gross Margin of 33.81% is fine compared to the rest of the industry. PDS outperforms 67.21% of its industry peers.
In the last couple of years the Gross Margin of PDS 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 PDS is destroying value.
The number of shares outstanding for PDS has been reduced compared to 1 year ago.
Compared to 5 years ago, PDS has less shares outstanding
PDS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that PDS is in the distress zone and has some risk of bankruptcy.
PDS's Altman-Z score of 0.95 is on the low side compared to the rest of the industry. PDS is outperformed by 75.41% of its industry peers.
PDS has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as PDS would need 3.36 years to pay back of all of its debts.
The Debt to FCF ratio of PDS (3.36) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.37 indicates that PDS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, PDS perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.72
WACC8.72%
2.3 Liquidity
PDS has a Current Ratio of 0.91. This is a bad value and indicates that PDS is not financially healthy enough and could expect problems in meeting its short term obligations.
PDS has a worse Current ratio (0.91) than 96.72% of its industry peers.
PDS has a Quick Ratio of 0.91. This is a bad value and indicates that PDS is not financially healthy enough and could expect problems in meeting its short term obligations.
PDS's Quick ratio of 0.82 is on the low side compared to the rest of the industry. PDS is outperformed by 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
PDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.24%.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.83% in the past year.
Measured over the past years, PDS shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
EPS 1Y (TTM)-53.24%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-26.34%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.69%
3.2 Future
PDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.67% yearly.
PDS 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-2.83%
Revenue Next 2Y-0.79%
Revenue Next 3Y-0.22%
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 11.71, the valuation of PDS can be described as very reasonable.
Based on the Price/Earnings ratio, PDS is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.25, PDS is valued rather cheaply.
A Price/Forward Earnings ratio of 8.20 indicates a reasonable valuation of PDS.
Based on the Price/Forward Earnings ratio, PDS is valued cheaper than 93.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.80. PDS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
88.52% of the companies in the same industry are more expensive than PDS, based on the Enterprise Value to EBITDA ratio.
PDS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PDS is cheaper than 96.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.01 | ||
| EV/EBITDA | 3.63 |
4.3 Compensation for Growth
PDS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PDS's earnings are expected to grow with 23.41% in the coming years.
PEG (NY)1.2
PEG (5Y)0.15
EPS Next 2Y13.61%
EPS Next 3Y23.41%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.32
+0.3 (+0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner Change-0.07%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap751.87M
Analysts80
Price Target75.57 (34.18%)
Short Float %4.78%
Short Ratio6.19
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)-0.4%
PT rev (3m)-1.5%
EPS NQ rev (1m)-46.67%
EPS NQ rev (3m)-87.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 8.2 | ||
| P/S | 0.55 | ||
| P/FCF | 4.01 | ||
| P/OCF | 2.16 | ||
| P/B | 0.61 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 3.63 |
EPS(TTM)4.81
EY8.54%
EPS(NY)6.87
Fwd EY12.19%
FCF(TTM)14.06
FCFY24.96%
OCF(TTM)26.06
OCFY46.28%
SpS101.6
BVpS92.1
TBVpS91.36
PEG (NY)1.2
PEG (5Y)0.15
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 | 0.95 |
F-Score6
WACC8.72%
ROIC/WACC0.72
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)-53.24%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-26.34%
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y20.67%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.69%
Revenue Next Year-2.83%
Revenue Next 2Y-0.79%
Revenue Next 3Y-0.22%
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%