PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
NYSE:PDS - New York Stock Exchange, Inc. - CA74022D4075 - Common Stock - Currency: USD
Taking everything into account, PDS scores 4 out of 10 in our fundamental rating. PDS was compared to 62 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. 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.
PDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.74%, PDS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Equity of PDS (6.44%) is comparable to the rest of the industry.
PDS has a Return On Invested Capital (6.31%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PDS is below the industry average of 8.42%.
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
The Profit Margin of PDS (5.84%) 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 has a better Gross Margin (33.81%) than 67.74% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PDS is destroying value.
Compared to 1 year ago, PDS has less shares outstanding
PDS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PDS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that PDS is in the distress zone and has some risk of bankruptcy.
PDS has a Altman-Z score of 0.90. This is in the lower half of the industry: PDS underperforms 77.42% 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 53.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.73
WACC8.68%
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 96.77% 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.
With a Quick ratio value of 0.82, PDS is not doing good in the industry: 88.71% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
Looking at the last year, PDS shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last 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)-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
The Earnings Per Share is expected to grow by 20.67% on average over the next years. This is a very strong growth
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-2.48%
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
A Price/Earnings ratio of 9.99 indicates a reasonable valuation of PDS.
Based on the Price/Earnings ratio, PDS is valued a bit cheaper than 79.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.53. PDS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.39, the valuation of PDS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 95.16% of the companies listed in the same industry.
PDS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 7.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaper than 85.48% of the companies in the same industry.
PDS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PDS is cheaper than 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.66 | ||
| EV/EBITDA | 3.41 |
4.3 Compensation for Growth
PDS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PDS's earnings are expected to grow with 23.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
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 |
51.07
+1.58 (+3.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner Change-0.08%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap690.47M
Analysts80
Price Target75.57 (47.97%)
Short Float %4.67%
Short Ratio6.15
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)0.24%
PT rev (3m)-13.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-76.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.51 | ||
| P/FCF | 3.66 | ||
| P/OCF | 1.97 | ||
| P/B | 0.56 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)5.11
EY10.01%
EPS(NY)6.91
Fwd EY13.53%
FCF(TTM)13.97
FCFY27.35%
OCF(TTM)25.9
OCFY50.72%
SpS100.97
BVpS91.53
TBVpS90.8
PEG (NY)1.03
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
WACC8.68%
ROIC/WACC0.73
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%