PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - NYSE:PDS - CA74022D4075 - Common Stock
57.7 USD
+0.15 (+0.26%)
57.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PDS. PDS was compared to 61 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 has a valuation in line with the averages, but it does not seem to be growing.
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
PDS has a Return On Assets of 3.82%. This is comparable to the rest of the industry: PDS outperforms 55.74% of its industry peers.
PDS has a Return On Equity (6.31%) which is comparable to the rest of the industry.
PDS's Return On Invested Capital of 6.21% is in line compared to the rest of the industry. PDS outperforms 54.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDS is below the industry average of 8.01%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(6.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROIC | 6.21% |
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 (5.67%) which is comparable to the rest of the industry.
PDS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.90%, PDS perfoms like the industry average, outperforming 55.74% of the companies in the same industry.
In the last couple of years the Operating Margin of PDS has grown nicely.
Looking at the Gross Margin, with a value of 33.64%, PDS is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
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 | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% |
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
The number of shares outstanding for PDS has been reduced compared to 5 years ago.
PDS has a better debt/assets ratio than last year.
2.2 Solvency
PDS has an Altman-Z score of 1.07. 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 1.07 is on the low side compared to the rest of the industry. PDS is outperformed by 77.05% of its industry peers.
The Debt to FCF ratio of PDS is 3.44, which is a good value as it means it would take PDS, 3.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PDS (3.44) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.36 indicates that PDS is not too dependend on debt financing.
The Debt to Equity ratio of PDS (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.73
WACC8.51%
2.3 Liquidity
PDS has a Current Ratio of 1.01. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, PDS is doing worse than 93.44% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that PDS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, PDS is doing worse than 85.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
PDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.17%.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
PDS shows a decrease in Revenue. In the last year, the revenue decreased by -3.26%.
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)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
3.2 Future
The Earnings Per Share is expected to grow by 16.45% on average over the next years. This is quite good.
PDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.23% yearly.
EPS Next Y-3.77%
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
EPS Next 5Y16.45%
Revenue Next Year-4.35%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.64%
Revenue Next 5Y-0.23%
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.
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 12.02 indicates a correct valuation of PDS.
Compared to the rest of the industry, the Price/Earnings ratio of PDS indicates a somewhat cheap valuation: PDS is cheaper than 77.05% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PDS to the average of the S&P500 Index (27.27), we can say PDS is valued rather cheaply.
The Price/Forward Earnings ratio is 10.87, which indicates a very decent 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 85.25% of the companies listed in the same industry.
PDS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaply inside the industry as 91.80% 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 95.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.89 | ||
| EV/EBITDA | 3.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
No dividends for PDS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.7
+0.15 (+0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner Change-8.4%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap770.29M
Analysts80
Price Target72.13 (25.01%)
Short Float %3.55%
Short Ratio5.06
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)1
Avg EPS beat(2)384.5%
Min EPS beat(2)-11.37%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)178.94%
Min EPS beat(4)-46.47%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)113%
EPS beat(12)5
Avg EPS beat(12)75.63%
EPS beat(16)6
Avg EPS beat(16)47.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-4.3%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.48%
Revenue beat(12)4
Avg Revenue beat(12)-2%
Revenue beat(16)7
Avg Revenue beat(16)6.18%
PT rev (1m)2.18%
PT rev (3m)-4.33%
EPS NQ rev (1m)-8.17%
EPS NQ rev (3m)-49.17%
EPS NY rev (1m)-12.31%
EPS NY rev (3m)-12.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.3%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 10.87 | ||
| P/S | 0.58 | ||
| P/FCF | 4.89 | ||
| P/OCF | 2.35 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 3.48 |
EPS(TTM)4.8
EY8.32%
EPS(NY)5.31
Fwd EY9.2%
FCF(TTM)11.81
FCFY20.47%
OCF(TTM)24.57
OCFY42.59%
SpS100.17
BVpS90
TBVpS89.39
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROCE | 8.62% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 6.37% | ||
| OM | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% | ||
| FCFM | 11.79% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 76.66% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 89.15% | ||
| Profit Quality | 208% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.07 |
F-Score6
WACC8.51%
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)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
EPS Next Y-3.77%
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
EPS Next 5Y16.45%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
Revenue Next Year-4.35%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.64%
Revenue Next 5Y-0.23%
EBIT growth 1Y-8.52%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year119%
EBIT Next 3Y28.23%
EBIT Next 5Y15.93%
FCF growth 1Y6.23%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y10.84%
OCF growth 3Y51.29%
OCF growth 5Y10.84%