PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PDS - CA74022D4075 - Common Stock
61.9 USD
+1.76 (+2.93%)
61.9 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PDS. PDS was compared to 60 industry peers in the Energy Equipment & Services industry. PDS has only an average score on both its financial health and profitability. PDS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PDS was profitable.
PDS had a positive operating cash flow in the past year.
In multiple years PDS reported negative net income over the last 5 years.
PDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.10%, PDS perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
The Return On Equity of PDS (3.54%) is worse than 61.67% of its industry peers.
With a Return On Invested Capital value of 4.93%, PDS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PDS is below the industry average of 7.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 3.54% | ||
| ROIC | 4.93% |
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's Profit Margin of 3.21% is on the low side compared to the rest of the industry. PDS is outperformed by 60.00% of its industry peers.
PDS's Profit Margin has improved in the last couple of years.
PDS has a Operating Margin (9.39%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PDS has grown nicely.
PDS's Gross Margin of 32.97% is fine compared to the rest of the industry. PDS outperforms 71.67% 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 | 9.39% | ||
| PM (TTM) | 3.21% | ||
| GM | 32.97% |
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.
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 1.09. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.09, PDS is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
The Debt to FCF ratio of PDS is 3.61, which is a good value as it means it would take PDS, 3.61 years of fcf income to pay off all of its debts.
PDS has a Debt to FCF ratio of 3.61. This is in the better half of the industry: PDS outperforms 61.67% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that PDS is not too dependend on debt financing.
PDS has a Debt to Equity ratio (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.6
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.58 indicates that PDS should not have too much problems paying its short term obligations.
PDS has a Current ratio of 1.58. This is in the lower half of the industry: PDS underperforms 70.00% of its industry peers.
A Quick Ratio of 1.42 indicates that PDS should not have too much problems paying its short term obligations.
PDS has a Quick ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
PDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.60%.
PDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.97% yearly.
The Revenue has decreased by -5.55% in the past year.
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)-74.6%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-122.08%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-3.12%
3.2 Future
PDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.35% yearly.
Based on estimates for the next years, PDS will show a small growth in Revenue. The Revenue will grow by 0.28% on average per year.
EPS Next Y-17.63%
EPS Next 2Y10.39%
EPS Next 3Y14.4%
EPS Next 5Y20.35%
Revenue Next Year-3.79%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.34%
Revenue Next 5Y0.28%
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
PDS is valuated rather expensively with a Price/Earnings ratio of 22.76.
Compared to the rest of the industry, the Price/Earnings ratio of PDS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PDS to the average of the S&P500 Index (26.31), we can say PDS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 9.72, the valuation of PDS can be described as reasonable.
Based on the Price/Forward Earnings ratio, PDS is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.59. PDS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PDS is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.49 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
PDS's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y10.39%
EPS Next 3Y14.4%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.9
+1.76 (+2.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change8.01%
Ins Owners2.73%
Ins Owner ChangeN/A
Market Cap815.22M
Revenue(TTM)1.83B
Net Income(TTM)58.81M
Analysts80
Price Target78.9 (27.46%)
Short Float %1.91%
Short Ratio3.01
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)323.37%
Min EPS beat(2)-133.63%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)147.23%
Min EPS beat(4)-133.63%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)100.13%
EPS beat(12)4
Avg EPS beat(12)60.39%
EPS beat(16)6
Avg EPS beat(16)40.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)4
Avg Revenue beat(12)-2.07%
Revenue beat(16)7
Avg Revenue beat(16)6.41%
PT rev (1m)10.08%
PT rev (3m)10.7%
EPS NQ rev (1m)43.07%
EPS NQ rev (3m)43.07%
EPS NY rev (1m)-16.56%
EPS NY rev (3m)-14.4%
Revenue NQ rev (1m)3.17%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 9.72 | ||
| P/S | 0.62 | ||
| P/FCF | 5.49 | ||
| P/OCF | 2.55 | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)2.72
EY4.39%
EPS(NY)6.37
Fwd EY10.29%
FCF(TTM)11.28
FCFY18.22%
OCF(TTM)24.3
OCFY39.26%
SpS99.11
BVpS89.88
TBVpS89.32
PEG (NY)N/A
PEG (5Y)0.3
Graham Number74.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 3.54% | ||
| ROCE | 6.84% | ||
| ROIC | 4.93% | ||
| ROICexc | 5% | ||
| ROICexgc | 5.03% | ||
| OM | 9.39% | ||
| PM (TTM) | 3.21% | ||
| GM | 32.97% | ||
| FCFM | 11.38% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 77.33% | ||
| Cap/Sales | 13.14% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 92.93% | ||
| Profit Quality | 354.71% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.09 |
F-Score6
WACC8.24%
ROIC/WACC0.6
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)-74.6%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-122.08%
EPS Next Y-17.63%
EPS Next 2Y10.39%
EPS Next 3Y14.4%
EPS Next 5Y20.35%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-3.12%
Revenue Next Year-3.79%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.34%
Revenue Next 5Y0.28%
EBIT growth 1Y-30.04%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year117.51%
EBIT Next 3Y29.51%
EBIT Next 5Y17.3%
FCF growth 1Y-26.59%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y-8.14%
OCF growth 3Y51.29%
OCF growth 5Y10.84%
PRECISION DRILLING CORP / PDS FAQ
Can you provide the ChartMill fundamental rating for PRECISION DRILLING CORP?
ChartMill assigns a fundamental rating of 4 / 10 to PDS.
What is the valuation status of PRECISION DRILLING CORP (PDS) stock?
ChartMill assigns a valuation rating of 5 / 10 to PRECISION DRILLING CORP (PDS). This can be considered as Fairly Valued.
What is the profitability of PDS stock?
PRECISION DRILLING CORP (PDS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of PRECISION DRILLING CORP (PDS) stock?
The Price/Earnings (PE) ratio for PRECISION DRILLING CORP (PDS) is 22.76 and the Price/Book (PB) ratio is 0.69.
What is the earnings growth outlook for PRECISION DRILLING CORP?
The Earnings per Share (EPS) of PRECISION DRILLING CORP (PDS) is expected to decline by -17.63% in the next year.