PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
NYSE:PDS - New York Stock Exchange, Inc. - CA74022D4075 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PDS. PDS was compared to 63 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PDS.
1. Profitability
1.1 Basic Checks
PDS had positive earnings in the past year.
PDS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.74%, PDS is in line with its industry, outperforming 50.79% of the companies in the same industry.
PDS has a Return On Equity (6.44%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.31%, PDS is in line with its industry, outperforming 46.03% 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 8.65%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(6.31%), indicating increased profibility in the last year.
| 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 (5.84%) which is comparable to the rest of the industry.
PDS's Profit Margin has improved in the last couple of years.
PDS's Operating Margin of 11.19% is in line compared to the rest of the industry. PDS outperforms 57.14% of its industry peers.
PDS's Operating Margin has improved in the last couple of years.
The Gross Margin of PDS (33.81%) is better than 66.67% 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 | 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
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
PDS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PDS has been reduced compared to a year ago.
2.2 Solvency
PDS has an Altman-Z score of 0.84. 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 0.84, PDS is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
The Debt to FCF ratio of PDS is 3.36, which is a good value as it means it would take PDS, 3.36 years of fcf income to pay off all of its debts.
PDS's Debt to FCF ratio of 3.36 is in line compared to the rest of the industry. PDS outperforms 57.14% 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 has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: PDS outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.74
WACC8.54%
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.
PDS's Current ratio of 0.91 is on the low side compared to the rest of the industry. PDS is outperformed by 95.24% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.82, PDS is doing worse than 90.48% of the companies in the same industry.
| 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 -51.22%.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
Looking at the last year, PDS shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last 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)-51.22%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-13.04%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.96%
3.2 Future
The Earnings Per Share is expected to grow by 24.17% on average over the next years. This is a very strong growth
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 Year-2.48%
Revenue Next 2Y-0.76%
Revenue Next 3Y-0.42%
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
The Price/Earnings ratio is 8.47, which indicates a very decent valuation of PDS.
PDS's Price/Earnings ratio is rather cheap when compared to the industry. PDS is cheaper than 82.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. PDS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.26 indicates a rather cheap 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 93.65% of the companies listed in the same industry.
PDS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
82.54% 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 96.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.1 | ||
| EV/EBITDA | 3.18 |
4.3 Compensation for Growth
The 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)0.87
PEG (5Y)0.11
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 (5/29/2025, 3:51:03 PM)
42.92
+0.2 (+0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner Change-12.81%
Ins Owners2.15%
Ins Owner ChangeN/A
Market Cap580.28M
Analysts80
Price Target75.05 (74.86%)
Short Float %5.22%
Short Ratio4.39
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)-28.92%
Min EPS beat(2)-46.47%
Max EPS beat(2)-11.37%
EPS beat(4)0
Avg EPS beat(4)-32.63%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)2
Avg EPS beat(8)18.03%
EPS beat(12)5
Avg EPS beat(12)12.42%
EPS beat(16)5
Avg EPS beat(16)-3.05%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-2.41%
Revenue beat(4)0
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.41%
Revenue beat(8)2
Avg Revenue beat(8)-3.14%
Revenue beat(12)5
Avg Revenue beat(12)8.57%
Revenue beat(16)7
Avg Revenue beat(16)5.9%
PT rev (1m)-2.18%
PT rev (3m)-17.48%
EPS NQ rev (1m)-76.26%
EPS NQ rev (3m)-80.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 6.26 | ||
| P/S | 0.43 | ||
| P/FCF | 3.1 | ||
| P/OCF | 1.67 | ||
| P/B | 0.47 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 3.18 |
EPS(TTM)5.07
EY11.81%
EPS(NY)6.85
Fwd EY15.96%
FCF(TTM)13.84
FCFY32.26%
OCF(TTM)25.67
OCFY59.82%
SpS100.07
BVpS90.71
TBVpS89.99
PEG (NY)0.87
PEG (5Y)0.11
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 | 0.84 |
F-Score6
WACC8.54%
ROIC/WACC0.74
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)-51.22%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-13.04%
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%-5.96%
Revenue Next Year-2.48%
Revenue Next 2Y-0.76%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.87%
EBIT growth 1Y-15.15%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year119%
EBIT Next 3Y28.23%
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%