PRECISION DRILLING CORP (PD.CA) Stock Fundamental Analysis
TSX:PD - Toronto Stock Exchange - CA74022D4075 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to PD. PD was compared to 28 industry peers in the Energy Equipment & Services industry. PD has an average financial health and profitability rating. PD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, PD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year PD was profitable.
In the past year PD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PD reported negative net income in multiple years.
In the past 5 years PD always reported a positive cash flow from operatings.
1.2 Ratios
PD has a Return On Assets (3.77%) which is in line with its industry peers.
With a Return On Equity value of 6.64%, PD is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
PD has a Return On Invested Capital of 5.83%. This is in the lower half of the industry: PD underperforms 67.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PD is significantly below the industry average of 10.77%.
The 3 year average ROIC (5.10%) for PD is below the current ROIC(5.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.64% | ||
| 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%, PD is in line with its industry, outperforming 57.14% of the companies in the same industry.
PD's Profit Margin has improved in the last couple of years.
PD has a Operating Margin of 11.14%. This is in the better half of the industry: PD outperforms 67.86% of its industry peers.
PD's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 34.36%, PD belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Gross Margin of PD 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 5Y68.71%
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), PD is destroying value.
PD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PD has been reduced compared to 5 years ago.
The debt/assets ratio for PD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that PD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.98, PD is doing worse than 75.00% of the companies in the same industry.
The Debt to FCF ratio of PD is 3.34, which is a good value as it means it would take PD, 3.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PD (3.34) is better than 64.29% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that PD is somewhat dependend on debt financing.
PD has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.69
WACC8.43%
2.3 Liquidity
PD has a Current Ratio of 1.48. This is a normal value and indicates that PD is financially healthy and should not expect problems in meeting its short term obligations.
PD has a Current ratio of 1.48. This is comparable to the rest of the industry: PD outperforms 46.43% of its industry peers.
A Quick Ratio of 1.35 indicates that PD should not have too much problems paying its short term obligations.
PD's Quick ratio of 1.35 is in line compared to the rest of the industry. PD outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for PD have decreased strongly by -57.69% in the last year.
PD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 77.02% yearly.
PD shows a decrease in Revenue. In the last year, the revenue decreased by -1.83%.
PD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
EPS 1Y (TTM)-57.69%
EPS 3YN/A
EPS 5Y77.02%
EPS Q2Q%-87.59%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.59%
3.2 Future
The Earnings Per Share is expected to grow by 26.54% on average over the next years. This is a very strong growth
PD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y13.17%
EPS Next 2Y14.97%
EPS Next 3Y23.26%
EPS Next 5Y26.54%
Revenue Next Year0.91%
Revenue Next 2Y1.9%
Revenue Next 3Y1.95%
Revenue Next 5Y1.76%
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.
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 9.06, the valuation of PD can be described as reasonable.
Based on the Price/Earnings ratio, PD is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
PD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.75.
Based on the Price/Forward Earnings ratio of 8.01, the valuation of PD can be described as reasonable.
Based on the Price/Forward Earnings ratio, PD is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
PD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PD indicates a somewhat cheap valuation: PD is cheaper than 75.00% of the companies listed in the same industry.
82.14% of the companies in the same industry are more expensive than PD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 3.46 |
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.
PD's earnings are expected to grow with 23.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.12
EPS Next 2Y14.97%
EPS Next 3Y23.26%
5. Dividend
5.1 Amount
PD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:PD (3/3/2025, 7:00:00 PM)
66.77
-4.98 (-6.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner ChangeN/A
Ins Owners2.15%
Ins Owner ChangeN/A
Market Cap920.09M
Analysts82.11
Price Target124.47 (86.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-25.95%
Min EPS beat(2)-45.11%
Max EPS beat(2)-6.79%
EPS beat(4)0
Avg EPS beat(4)-31.22%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)3
Avg EPS beat(8)23.07%
EPS beat(12)5
Avg EPS beat(12)2.67%
EPS beat(16)6
Avg EPS beat(16)-2.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-3.53%
Revenue beat(4)0
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.57%
Revenue beat(8)3
Avg Revenue beat(8)-2.21%
Revenue beat(12)6
Avg Revenue beat(12)9.22%
Revenue beat(16)8
Avg Revenue beat(16)6.27%
PT rev (1m)-4.84%
PT rev (3m)-4.55%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)-9.88%
EPS NY rev (3m)-22.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-1.82%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.01 | ||
| P/S | 0.48 | ||
| P/FCF | 3.47 | ||
| P/OCF | 1.91 | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 3.46 |
EPS(TTM)7.37
EY11.04%
EPS(NY)8.34
Fwd EY12.49%
FCF(TTM)19.26
FCFY28.84%
OCF(TTM)34.98
OCFY52.4%
SpS138.05
BVpS121.73
TBVpS120.79
PEG (NY)0.69
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.64% | ||
| 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 5Y68.71%
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 | 238.38% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 0.98 |
F-Score7
WACC8.43%
ROIC/WACC0.69
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)-57.69%
EPS 3YN/A
EPS 5Y77.02%
EPS Q2Q%-87.59%
EPS Next Y13.17%
EPS Next 2Y14.97%
EPS Next 3Y23.26%
EPS Next 5Y26.54%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.59%
Revenue Next Year0.91%
Revenue Next 2Y1.9%
Revenue Next 3Y1.95%
Revenue Next 5Y1.76%
EBIT growth 1Y-32.42%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year150.56%
EBIT Next 3Y33.57%
EBIT Next 5Y24.58%
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%