PRECISION DRILLING CORP (PDS)
CA74022D4075 - Common Stock
We assign a fundamental rating of 5 out of 10 to PDS. PDS was compared to 65 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of PDS get a neutral evaluation. Nothing too spectacular is happening here. PDS is cheap, but on the other hand it scores bad on growth.
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
PDS has a better Return On Assets (7.67%) than 73.85% of its industry peers.
PDS has a Return On Equity of 14.06%. This is in the better half of the industry: PDS outperforms 67.69% of its industry peers.
PDS has a Return On Invested Capital (7.21%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 14.06% | ||
| ROIC | 7.21% |
ROA(3y)0.57%
ROA(5y)-0.44%
ROE(3y)0.37%
ROE(5y)-1.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PDS's Profit Margin of 12.06% is amongst the best of the industry. PDS outperforms 83.08% of its industry peers.
PDS has a Operating Margin of 12.94%. This is in the better half of the industry: PDS outperforms 66.15% of its industry peers.
PDS's Operating Margin has improved in the last couple of years.
The Gross Margin of PDS (36.86%) is better than 69.23% of its industry peers.
PDS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.94% | ||
| PM (TTM) | 12.06% | ||
| GM | 36.86% |
OM growth 3YN/A
OM growth 5Y92.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.24%
GM growth 5Y4.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PDS is destroying value.
PDS has more 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
PDS has an Altman-Z score of 1.15. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, PDS is doing worse than 70.77% of the companies in the same industry.
PDS has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as PDS would need 3.31 years to pay back of all of its debts.
PDS has a better Debt to FCF ratio (3.31) than 63.08% of its industry peers.
PDS has a Debt/Equity ratio of 0.61. This is a neutral value indicating PDS is somewhat dependend on debt financing.
PDS has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 1.15 |
ROIC/WACC1
WACC7.24%
2.3 Liquidity
PDS has a Current Ratio of 1.71. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
PDS has a worse Current ratio (1.71) than 61.54% of its industry peers.
PDS has a Quick Ratio of 1.59. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
PDS has a Quick ratio (1.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
PDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 137.83%, which is quite impressive.
The Revenue for PDS has decreased by -12.35% in the past year. This is quite bad
Measured over the past years, PDS shows a small growth in Revenue. The Revenue has been growing by 4.69% on average per year.
EPS 1Y (TTM)137.83%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-53.82%
Revenue 1Y (TTM)-12.35%
Revenue growth 3Y27.46%
Revenue growth 5Y4.69%
Revenue growth Q2Q-4.14%
3.2 Future
Based on estimates for the next years, PDS will show a small growth in Earnings Per Share. The EPS will grow by 3.53% on average per year.
Based on estimates for the next years, PDS will show a small growth in Revenue. The Revenue will grow by 0.62% on average per year.
EPS Next Y-40.14%
EPS Next 2Y-9.5%
EPS Next 3Y-1.11%
EPS Next 5Y3.53%
Revenue Next Year4.68%
Revenue Next 2Y4.84%
Revenue Next 3Y2.61%
Revenue Next 5Y0.62%
3.3 Evolution
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
PDS is valuated cheaply with a Price/Earnings ratio of 6.80.
96.92% of the companies in the same industry are more expensive than PDS, based on the Price/Earnings ratio.
PDS is valuated cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.87, 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 89.23% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. PDS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than PDS, based on the Enterprise Value to EBITDA ratio.
93.85% of the companies in the same industry are more expensive than PDS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.63 | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
PDS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.5%
EPS Next 3Y-1.11%
5. Dividend
5.1 Amount
No dividends for PDS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PRECISION DRILLING CORP
NYSE:PDS (5/17/2024, 7:19:16 PM)
After market: 71.9 0 (0%)71.9
+0.96 (+1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 6.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 14.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.94% | ||
| PM (TTM) | 12.06% | ||
| GM | 36.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)137.83%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-40.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.35%
Revenue growth 3Y27.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y