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 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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 48.39% of its industry peers.
PDS has a Return On Equity (6.44%) which is comparable to the rest of the industry.
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 8.29%.
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 of 5.84%. This is comparable to the rest of the industry: PDS outperforms 50.00% of its industry peers.
PDS's Profit Margin has improved in the last couple of years.
The Operating Margin of PDS (11.19%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PDS has grown nicely.
PDS has a better Gross Margin (33.81%) than 66.13% 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
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
The debt/assets ratio for PDS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that PDS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PDS (0.81) is worse than 67.74% 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.
PDS has a Debt to FCF ratio of 3.36. This is comparable to the rest of the industry: PDS outperforms 56.45% of its industry peers.
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 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.75
WACC8.41%
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.
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's Quick ratio of 0.82 is on the low side compared to the rest of the industry. PDS is outperformed by 91.94% 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 -51.74%.
Measured over the past years, PDS shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.97% on average per year.
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)-51.74%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-16.04%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-9.05%
3.2 Future
PDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.17% yearly.
The Revenue is expected to grow by 0.87% on average over the next years.
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y24.17%
Revenue Next Year-1.97%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.92%
Revenue Next 5Y0.87%
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.
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
A Price/Earnings ratio of 7.91 indicates a rather cheap valuation of PDS.
79.03% of the companies in the same industry are more expensive than PDS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 23.99. PDS is valued rather cheaply when compared to this.
PDS is valuated cheaply with a Price/Forward Earnings ratio of 5.79.
PDS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PDS is cheaper than 95.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PDS to the average of the S&P500 Index (20.35), we can say PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 5.79 |
4.2 Price Multiples
83.87% of the companies in the same industry are more expensive than PDS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PDS is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.87 | ||
| EV/EBITDA | 3.07 |
4.3 Compensation for Growth
PDS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.81
PEG (5Y)0.1
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 |
39.78
-1.11 (-2.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner Change1.65%
Ins Owners2.15%
Ins Owner ChangeN/A
Market Cap537.83M
Analysts80
Price Target76.72 (92.86%)
Short Float %5.16%
Short Ratio4.17
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)-30.27%
Min EPS beat(2)-46.47%
Max EPS beat(2)-14.07%
EPS beat(4)0
Avg EPS beat(4)-33.31%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)2
Avg EPS beat(8)17.7%
EPS beat(12)5
Avg EPS beat(12)12.2%
EPS beat(16)5
Avg EPS beat(16)-3.22%
Revenue beat(2)0
Avg Revenue beat(2)-5.58%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-5.56%
Revenue beat(4)0
Avg Revenue beat(4)-5.29%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.57%
Revenue beat(8)2
Avg Revenue beat(8)-3.53%
Revenue beat(12)5
Avg Revenue beat(12)8.31%
Revenue beat(16)7
Avg Revenue beat(16)5.71%
PT rev (1m)-11.83%
PT rev (3m)-15.64%
EPS NQ rev (1m)-76.69%
EPS NQ rev (3m)-82.74%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)-12.93%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-2.86%
Revenue NY rev (3m)-4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 5.79 | ||
| P/S | 0.4 | ||
| P/FCF | 2.87 | ||
| P/OCF | 1.55 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 3.07 |
EPS(TTM)5.03
EY12.64%
EPS(NY)6.87
Fwd EY17.26%
FCF(TTM)13.88
FCFY34.88%
OCF(TTM)25.73
OCFY64.68%
SpS100.3
BVpS90.92
TBVpS90.19
PEG (NY)0.81
PEG (5Y)0.1
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 | 0.81 |
F-Score6
WACC8.41%
ROIC/WACC0.75
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)-51.74%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-16.04%
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y24.17%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-9.05%
Revenue Next Year-1.97%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.92%
Revenue Next 5Y0.87%
EBIT growth 1Y-15.15%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year134.46%
EBIT Next 3Y34.43%
EBIT Next 5Y18.87%
FCF growth 1Y95.91%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y45.11%
OCF growth 3Y51.29%
OCF growth 5Y10.84%