PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PDS - CA74022D4075 - Common Stock
78.7 USD
+0.66 (+0.85%)
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. PDS has an average financial health and profitability rating. PDS has a valuation in line with the averages, but it does not seem to be growing.
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.
- 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
- PDS has a Return On Assets of 2.10%. This is comparable to the rest of the industry: PDS outperforms 45.90% of its industry peers.
- PDS has a Return On Equity (3.54%) which is comparable to the rest of the industry.
- PDS has a Return On Invested Capital of 4.93%. This is comparable to the rest of the industry: PDS outperforms 50.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PDS is significantly below the industry average of 12.90%.
| 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 (3.21%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of PDS has grown nicely.
- The Operating Margin of PDS (9.39%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of PDS has grown nicely.
- PDS has a better Gross Margin (32.97%) than 73.77% of its industry peers.
- 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%
2. Health
2.1 Basic Checks
- PDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, PDS has an improved debt to assets ratio.
2.2 Solvency
- PDS has an Altman-Z score of 1.24. 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 1.24, PDS is not doing good in the industry: 72.13% 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 62.30% of its industry peers.
- A Debt/Equity ratio of 0.44 indicates that PDS is not too dependend on debt financing.
- The Debt to Equity ratio of PDS (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.6
WACC8.23%
2.3 Liquidity
- A Current Ratio of 1.58 indicates that PDS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.58, PDS is not doing good in the industry: 67.21% of the companies in the same industry are doing better.
- PDS has a Quick Ratio of 1.42. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.42, PDS is in line with its industry, outperforming 44.26% of the companies in the same 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.
- Looking at the last year, PDS shows a decrease in Revenue. The Revenue has decreased by -5.55% in the last year.
- The Revenue has been growing slightly by 4.30% on average over the past years.
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
- Based on estimates for the next years, PDS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.84% on average per year.
- Based on estimates for the next years, PDS will show a decrease in Revenue. The Revenue will decrease by -0.14% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 28.21, the valuation of PDS can be described as expensive.
- PDS's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.25. PDS is around the same levels.
- A Price/Forward Earnings ratio of 12.80 indicates a correct 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 91.80% 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 (25.98), we can say PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.21 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
- 93.44% 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 93.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 4.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y7.18%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
- PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 for 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 5 / 10.
Can you provide the financial health for PDS stock?
The financial health rating of PRECISION DRILLING CORP (PDS) is 5 / 10.
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 -22.57% in the next year.