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. There are concerns on the financial health of PDS while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of 3.74%, PDS is in line with its industry, outperforming 50.00% 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 41.94% of its industry peers.
With a Return On Invested Capital value of 6.31%, PDS perfoms like the industry average, outperforming 46.77% 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 8.42%.
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
PDS has a Profit Margin (5.84%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PDS has grown nicely.
PDS has a Operating Margin (11.19%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PDS has grown nicely.
The Gross Margin of PDS (33.81%) is better than 67.74% 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.
PDS has less shares outstanding than it did 5 years ago.
PDS has a better debt/assets ratio than last year.
2.2 Solvency
PDS has an Altman-Z score of 0.92. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
PDS's Altman-Z score of 0.92 is on the low side compared to the rest of the industry. PDS is outperformed by 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.
With a Debt to FCF ratio value of 3.36, PDS perfoms like the industry average, outperforming 56.45% of the companies in the same 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 53.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.73
WACC8.69%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PDS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, PDS is doing worse than 96.77% of the companies in the same industry.
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 has a Quick ratio of 0.82. This is amonst the worse of the industry: PDS underperforms 88.71% 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 PDS have decreased strongly by -51.22% in the last year.
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.
PDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
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
Based on estimates for the next years, PDS will show a small growth in Revenue. The Revenue will grow by 0.10% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.29, which indicates a very decent valuation of PDS.
80.65% of the companies in the same industry are more expensive than PDS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.69, PDS is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.61, 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 93.55% 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 37.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 96.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| EV/EBITDA | 3.52 |
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)1.06
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 |
53.09
+2.02 (+3.96%)
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 Cap717.78M
Analysts80
Price Target75.57 (42.34%)
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 | 10.29 | ||
| Fwd PE | 7.61 | ||
| P/S | 0.52 | ||
| P/FCF | 3.77 | ||
| P/OCF | 2.03 | ||
| P/B | 0.57 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 3.52 |
EPS(TTM)5.16
EY9.72%
EPS(NY)6.97
Fwd EY13.14%
FCF(TTM)14.09
FCFY26.55%
OCF(TTM)26.13
OCFY49.23%
SpS101.87
BVpS92.35
TBVpS91.61
PEG (NY)1.06
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 | 0.92 |
F-Score6
WACC8.69%
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%