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 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. PDS has only an average score on both its financial health and profitability. 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.
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
PDS has a Return On Assets of 3.76%. This is comparable to the rest of the industry: PDS outperforms 50.00% of its industry peers.
PDS has a Return On Equity (6.63%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.83%, PDS perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
PDS had an Average Return On Invested Capital over the past 3 years of 5.10%. This is below the industry average of 8.16%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(5.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 6.63% | ||
| ROIC | 5.83% |
ROA(3y)4.05%
ROA(5y)0.27%
ROE(3y)7.4%
ROE(5y)-0.16%
ROIC(3y)5.1%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.85%, PDS is in line with its industry, outperforming 48.39% of the companies in the same industry.
In the last couple of years the Profit Margin of PDS has grown nicely.
PDS has a Operating Margin (11.14%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PDS has grown nicely.
PDS has a Gross Margin of 34.36%. This is in the better half of the industry: PDS outperforms 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 | 11.14% | ||
| PM (TTM) | 5.85% | ||
| GM | 34.36% |
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.
PDS has less 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
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's Altman-Z score of 0.90 is on the low side compared to the rest of the industry. PDS is outperformed by 74.19% of its industry peers.
PDS has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as PDS would need 3.34 years to pay back of all of its debts.
The Debt to FCF ratio of PDS (3.34) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that PDS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, PDS perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.7
WACC8.3%
2.3 Liquidity
PDS has a Current Ratio of 1.48. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
PDS's Current ratio of 1.48 is on the low side compared to the rest of the industry. PDS is outperformed by 74.19% of its industry peers.
PDS has a Quick Ratio of 1.35. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
PDS's Quick ratio of 1.35 is on the low side compared to the rest of the industry. PDS is outperformed by 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
PDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.84%.
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 -1.83% in the past year.
The Revenue has been growing slightly by 4.30% on average over the past years.
EPS 1Y (TTM)-57.84%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-87.9%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-7.64%
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.
Based on estimates for the next years, PDS will show a small growth in Revenue. The Revenue will grow by 0.87% on average per year.
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y24.17%
Revenue Next Year0.91%
Revenue Next 2Y1.9%
Revenue Next 3Y1.95%
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
Based on the Price/Earnings ratio of 7.89, the valuation of PDS can be described as very cheap.
PDS's Price/Earnings ratio is rather cheap when compared to the industry. PDS is cheaper than 80.65% of the companies in the same industry.
PDS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 7.20, 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.
When comparing the Price/Forward Earnings ratio of PDS to the average of the S&P500 Index (21.32), we can say PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
PDS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDS is cheaper than 82.26% of the companies in the same industry.
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 | 2.96 | ||
| EV/EBITDA | 3.13 |
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 |
NYSE:PDS (4/21/2025, 1:45:14 PM)
41.74
-1.72 (-3.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner Change0%
Ins Owners2.15%
Ins Owner ChangeN/A
Market Cap565.58M
Analysts81.18
Price Target87.29 (109.13%)
Short Float %2%
Short Ratio2.45
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)-26.63%
Min EPS beat(2)-46.47%
Max EPS beat(2)-6.79%
EPS beat(4)0
Avg EPS beat(4)-31.56%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)3
Avg EPS beat(8)22.9%
EPS beat(12)5
Avg EPS beat(12)2.55%
EPS beat(16)6
Avg EPS beat(16)-2.3%
Revenue beat(2)0
Avg Revenue beat(2)-6.52%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-5.59%
Revenue beat(4)0
Avg Revenue beat(4)-4.71%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.57%
Revenue beat(8)3
Avg Revenue beat(8)-2.46%
Revenue beat(12)6
Avg Revenue beat(12)9.05%
Revenue beat(16)8
Avg Revenue beat(16)6.14%
PT rev (1m)1.08%
PT rev (3m)-4.98%
EPS NQ rev (1m)-4.76%
EPS NQ rev (3m)-15.91%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)-24.65%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-6.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 7.2 | ||
| P/S | 0.41 | ||
| P/FCF | 2.96 | ||
| P/OCF | 1.63 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 3.13 |
EPS(TTM)5.29
EY12.67%
EPS(NY)5.8
Fwd EY13.9%
FCF(TTM)14.11
FCFY33.79%
OCF(TTM)25.62
OCFY61.39%
SpS101.11
BVpS89.16
TBVpS88.47
PEG (NY)0.81
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 6.63% | ||
| ROCE | 8.1% | ||
| ROIC | 5.83% | ||
| ROICexc | 6% | ||
| ROICexgc | 6.03% | ||
| OM | 11.14% | ||
| PM (TTM) | 5.85% | ||
| GM | 34.36% | ||
| FCFM | 13.95% |
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-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 70.06% | ||
| Cap/Sales | 11.39% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 92.49% | ||
| Profit Quality | 238.67% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 0.9 |
F-Score7
WACC8.3%
ROIC/WACC0.7
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)-57.84%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-87.9%
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y24.17%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-7.64%
Revenue Next Year0.91%
Revenue Next 2Y1.9%
Revenue Next 3Y1.95%
Revenue Next 5Y0.87%
EBIT growth 1Y-32.42%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year134.46%
EBIT Next 3Y34.43%
EBIT Next 5Y18.87%
FCF growth 1Y-3.08%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y-3.69%
OCF growth 3Y51.29%
OCF growth 5Y10.84%