PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PDS - CA74022D4075 - Common Stock
68.26 USD
+1.09 (+1.62%)
68.26 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PDS. PDS was compared to 60 industry peers in the Energy Equipment & Services industry. PDS has an average financial health and profitability rating. PDS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PDS was profitable.
PDS had a positive operating cash flow in the past year.
In multiple years PDS reported negative net income over the last 5 years.
PDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.10%, PDS is in line with its industry, outperforming 41.67% of the companies in the same industry.
With a Return On Equity value of 3.54%, PDS is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.93%, PDS is in line with its industry, outperforming 46.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PDS is below the industry average of 7.66%.
| 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
With a Profit Margin value of 3.21%, PDS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 53.33% of its industry peers.
PDS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.97%, PDS is in the better half of the industry, outperforming 71.67% of the companies in the same industry.
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 | 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.
Compared to 5 years ago, PDS has less shares outstanding
The debt/assets ratio for PDS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that PDS is in the distress zone and has some risk of bankruptcy.
PDS has a Altman-Z score of 1.15. This is in the lower half of the industry: PDS underperforms 73.33% of its industry peers.
PDS has a debt to FCF ratio of 3.61. This is a good value and a sign of high solvency as PDS would need 3.61 years to pay back of all of its debts.
The Debt to FCF ratio of PDS (3.61) is better than 61.67% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that PDS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, PDS is in line with its industry, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.6
WACC8.27%
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 70.00% 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.
The Quick ratio of PDS (1.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for PDS have decreased strongly by -74.60% 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 -5.55% 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)-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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.41% yearly.
The Revenue is expected to grow by 0.33% on average over the next years.
EPS Next Y-17.63%
EPS Next 2Y10.39%
EPS Next 3Y14.4%
EPS Next 5Y20.41%
Revenue Next Year-3.79%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.34%
Revenue Next 5Y0.33%
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
A Price/Earnings ratio of 25.00 indicates a quite expensive valuation of PDS.
The rest of the industry has a similar Price/Earnings ratio as PDS.
PDS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.66 indicates a reasonable 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 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
93.33% of the companies in the same industry are more expensive than PDS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PDS's earnings are expected to grow with 14.40% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y10.39%
EPS Next 3Y14.4%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.26
+1.09 (+1.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change8.01%
Ins Owners2.73%
Ins Owner ChangeN/A
Market Cap898.98M
Revenue(TTM)1.83B
Net Income(TTM)58.81M
Analysts80
Price Target79.33 (16.22%)
Short Float %2.3%
Short Ratio3.83
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)323.37%
Min EPS beat(2)-133.63%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)147.23%
Min EPS beat(4)-133.63%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)100.13%
EPS beat(12)4
Avg EPS beat(12)60.39%
EPS beat(16)6
Avg EPS beat(16)40.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)4
Avg Revenue beat(12)-2.07%
Revenue beat(16)7
Avg Revenue beat(16)6.41%
PT rev (1m)2.27%
PT rev (3m)10.7%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)43.07%
EPS NY rev (1m)-16.56%
EPS NY rev (3m)-14.4%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.69 | ||
| P/FCF | 6.02 | ||
| P/OCF | 2.79 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)2.73
EY4%
EPS(NY)6.4
Fwd EY9.38%
FCF(TTM)11.34
FCFY16.61%
OCF(TTM)24.43
OCFY35.79%
SpS99.64
BVpS90.36
TBVpS89.8
PEG (NY)N/A
PEG (5Y)0.32
Graham Number74.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 3.54% | ||
| ROCE | 6.84% | ||
| ROIC | 4.93% | ||
| ROICexc | 5% | ||
| ROICexgc | 5.03% | ||
| OM | 9.39% | ||
| PM (TTM) | 3.21% | ||
| GM | 32.97% | ||
| FCFM | 11.38% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 77.33% | ||
| Cap/Sales | 13.14% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 92.93% | ||
| Profit Quality | 354.71% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.15 |
F-Score6
WACC8.27%
ROIC/WACC0.6
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)-74.6%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-122.08%
EPS Next Y-17.63%
EPS Next 2Y10.39%
EPS Next 3Y14.4%
EPS Next 5Y20.41%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-3.12%
Revenue Next Year-3.79%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.34%
Revenue Next 5Y0.33%
EBIT growth 1Y-30.04%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year117.51%
EBIT Next 3Y29.51%
EBIT Next 5Y17.36%
FCF growth 1Y-26.59%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y-8.14%
OCF growth 3Y51.29%
OCF growth 5Y10.84%
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 of PRECISION DRILLING CORP (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 4 / 10.
What are the PE and PB ratios of PRECISION DRILLING CORP (PDS) stock?
The Price/Earnings (PE) ratio for PRECISION DRILLING CORP (PDS) is 25 and the Price/Book (PB) ratio is 0.76.
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 -17.63% in the next year.