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 63 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of PDS while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on PDS.
1. Profitability
1.1 Basic Checks
In the past year PDS was profitable.
PDS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PDS reported negative net income in multiple years.
In the past 5 years PDS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.74%, PDS perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
PDS's Return On Equity of 6.44% is in line compared to the rest of the industry. PDS outperforms 42.86% of its industry peers.
The Return On Invested Capital of PDS (6.31%) is comparable to the rest of the industry.
PDS had an Average Return On Invested Capital over the past 3 years of 5.10%. This is below the industry average of 8.50%.
The 3 year average ROIC (5.10%) for PDS 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%, PDS perfoms like the industry average, outperforming 50.79% of the companies in the same 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.
The Gross Margin of PDS (33.81%) is better than 66.67% of its industry peers.
PDS'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
PDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PDS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PDS has less shares outstanding
Compared to 1 year ago, PDS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that PDS is in the distress zone and has some risk of bankruptcy.
PDS has a worse Altman-Z score (0.91) than 77.78% of its industry peers.
The Debt to FCF ratio of PDS is 3.36, which is a good value as it means it would take PDS, 3.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PDS (3.36) is comparable to the rest of the industry.
PDS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
PDS's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. PDS outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.88
WACC7.2%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PDS may have some problems paying its short term obligations.
PDS has a Current ratio of 0.91. This is amonst the worse of the industry: PDS underperforms 96.83% 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 88.89% 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 -51.22%.
PDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.97% yearly.
The Revenue has decreased by -1.90% in the past year.
The Revenue has been growing slightly by 4.30% on average over the past years.
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
PDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.67% yearly.
The Revenue is expected to grow by 0.10% on average over the next years.
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 9.89, the valuation of PDS can be described as very reasonable.
PDS's Price/Earnings ratio is a bit cheaper when compared to the industry. PDS is cheaper than 79.37% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. PDS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.31, which indicates a rather cheap valuation of PDS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 90.48% of the companies listed in the same industry.
PDS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
87.30% 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 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.62 | ||
| EV/EBITDA | 3.47 |
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)1.02
PEG (5Y)0.13
EPS Next 2Y13.61%
EPS Next 3Y23.41%
5. Dividend
5.1 Amount
No dividends for PDS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.54
-0.52 (-1.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner Change-12.81%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap683.30M
Analysts80
Price Target75.88 (50.14%)
Short Float %5.07%
Short Ratio5.21
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)0.45%
PT rev (3m)-12.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-76.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 7.31 | ||
| P/S | 0.5 | ||
| P/FCF | 3.62 | ||
| P/OCF | 1.95 | ||
| P/B | 0.55 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 3.47 |
EPS(TTM)5.11
EY10.11%
EPS(NY)6.91
Fwd EY13.67%
FCF(TTM)13.96
FCFY27.63%
OCF(TTM)25.9
OCFY51.24%
SpS100.94
BVpS91.5
TBVpS90.77
PEG (NY)1.02
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 | 0.91 |
F-Score6
WACC7.2%
ROIC/WACC0.88
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%