PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - NYSE:PDS - CA74022D4075 - Common Stock
57.55 USD
+0.67 (+1.18%)
57.55 USD
0 (0%)
Overall PDS gets a fundamental rating of 4 out of 10. We evaluated PDS against 61 industry peers in the Energy Equipment & Services industry. While PDS is still in line with the averages on profitability rating, there are concerns on its financial health. PDS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years PDS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.82%, PDS is in line with its industry, outperforming 55.74% of the companies in the same industry.
PDS has a Return On Equity (6.31%) which is in line with its industry peers.
PDS has a Return On Invested Capital of 6.21%. This is comparable to the rest of the industry: PDS outperforms 54.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDS is below the industry average of 8.01%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(6.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROIC | 6.21% |
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
The Profit Margin of PDS (5.67%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PDS has grown nicely.
PDS's Operating Margin of 10.90% 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.
PDS has a Gross Margin of 33.64%. This is in the better half of the industry: PDS outperforms 67.21% 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 | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% |
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.
PDS has less shares outstanding than it did 1 year ago.
PDS has less shares outstanding than it did 5 years ago.
PDS has a better debt/assets ratio than last year.
2.2 Solvency
PDS has an Altman-Z score of 1.07. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
PDS has a worse Altman-Z score (1.07) than 77.05% of its industry peers.
The Debt to FCF ratio of PDS is 3.44, which is a good value as it means it would take PDS, 3.44 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.44, PDS perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
PDS has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
PDS has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.72
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.01 indicates that PDS should not have too much problems paying its short term obligations.
The Current ratio of PDS (1.01) is worse than 93.44% of its industry peers.
PDS has a Quick Ratio of 1.01. 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 Quick ratio of 0.90 is on the low side compared to the rest of the industry. PDS is outperformed by 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for PDS have decreased strongly by -53.17% in the last year.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
The Revenue has decreased by -3.26% in the past year.
PDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
EPS 1Y (TTM)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
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 16.45% on average per year.
Based on estimates for the next years, PDS will show a decrease in Revenue. The Revenue will decrease by -0.23% on average per year.
EPS Next Y-3.77%
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
EPS Next 5Y16.45%
Revenue Next Year-4.35%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.64%
Revenue Next 5Y-0.23%
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
A Price/Earnings ratio of 12.01 indicates a correct valuation of PDS.
Based on the Price/Earnings ratio, PDS is valued a bit cheaper than 77.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PDS is valued rather cheaply.
A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of PDS.
PDS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PDS is cheaper than 85.25% of the companies in the same industry.
PDS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 91.80% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PDS is valued cheaply inside the industry as 95.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 3.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.55
+0.67 (+1.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner Change-8.4%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap768.29M
Analysts80
Price Target72.13 (25.33%)
Short Float %3.55%
Short Ratio5.06
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)384.5%
Min EPS beat(2)-11.37%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)178.94%
Min EPS beat(4)-46.47%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)113%
EPS beat(12)5
Avg EPS beat(12)75.63%
EPS beat(16)6
Avg EPS beat(16)47.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-4.3%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.48%
Revenue beat(12)4
Avg Revenue beat(12)-2%
Revenue beat(16)7
Avg Revenue beat(16)6.18%
PT rev (1m)2.18%
PT rev (3m)-4.33%
EPS NQ rev (1m)-8.17%
EPS NQ rev (3m)-49.17%
EPS NY rev (1m)-12.31%
EPS NY rev (3m)-12.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.3%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 10.86 | ||
| P/S | 0.58 | ||
| P/FCF | 4.88 | ||
| P/OCF | 2.35 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 3.47 |
EPS(TTM)4.79
EY8.32%
EPS(NY)5.3
Fwd EY9.21%
FCF(TTM)11.79
FCFY20.48%
OCF(TTM)24.52
OCFY42.61%
SpS99.98
BVpS89.82
TBVpS89.21
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROCE | 8.62% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 6.37% | ||
| OM | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% | ||
| FCFM | 11.79% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 76.66% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 89.15% | ||
| Profit Quality | 208% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.07 |
F-Score6
WACC8.63%
ROIC/WACC0.72
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)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
EPS Next Y-3.77%
EPS Next 2Y-0.03%
EPS Next 3Y7.49%
EPS Next 5Y16.45%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
Revenue Next Year-4.35%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.64%
Revenue Next 5Y-0.23%
EBIT growth 1Y-8.52%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year119%
EBIT Next 3Y28.23%
EBIT Next 5Y15.93%
FCF growth 1Y6.23%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y10.84%
OCF growth 3Y51.29%
OCF growth 5Y10.84%