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. Both the profitability and the financial health of PDS get a neutral evaluation. Nothing too spectacular is happening here. PDS is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years PDS always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of PDS (2.10%) is comparable to the rest of the industry.
The Return On Equity of PDS (3.54%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.93%, PDS perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PDS is significantly below the industry average of 12.88%.

		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 has a Profit Margin of 3.21%. This is comparable to the rest of the industry: PDS outperforms 44.26% of its industry peers.
PDS's Profit Margin has improved in the last couple of years.
PDS's Operating Margin of 9.39% is in line compared to the rest of the industry. PDS outperforms 55.74% of its industry peers.
In the last couple of years the Operating Margin of PDS has grown nicely.
With a decent Gross Margin value of 32.97%, PDS is doing good in the industry, outperforming 73.77% of the companies in the same industry.
PDS's Gross Margin has been stable in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PDS is destroying value.
PDS has less shares outstanding than it did 1 year ago.
PDS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PDS has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.25, we must say that PDS is in the distress zone and has some risk of bankruptcy.
PDS has a worse Altman-Z score (1.25) than 68.85% of its industry peers.
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's Debt to FCF ratio of 3.61 is fine compared to the rest of the industry. PDS outperforms 62.30% of its industry peers.
PDS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, PDS perfoms like the industry average, outperforming 50.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.44
Debt/FCF	3.61
Altman-Z	1.25

ROIC/WACC0.6

WACC8.17%

2.3 Liquidity

A Current Ratio of 1.58 indicates that PDS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.58, PDS is doing worse than 67.21% of the companies in the same industry.
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

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WACC

Debt/Equity

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Altman-Z score

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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%.
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 -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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.84% yearly.
The Revenue is expected to decrease by -0.14% on average over the next years.

EPS Next Y-22.57%

EPS Next 2Y7.18%

EPS Next 3Y11.61%

EPS Next 5Y19.84%

Revenue Next Year-3.79%

Revenue Next 2Y-0.51%

Revenue Next 3Y0.44%

Revenue Next 5Y-0.14%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.17, which means the current valuation is very expensive for PDS.
The rest of the industry has a similar Price/Earnings ratio as PDS.
When comparing the Price/Earnings ratio of PDS to the average of the S&P500 Index (28.32), we can say PDS is valued inline with the index average.
With a Price/Forward Earnings ratio of 12.74, PDS is valued correctly.
91.80% of the companies in the same industry are more expensive than PDS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.57. PDS is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	28.17
Fwd PE	12.74

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaply inside the industry as 93.44% of the companies are valued more expensively.
PDS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PDS is cheaper than 93.44% of the companies in the same industry.