PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:PDS • CA74022D4075
81.56 USD
+0.06 (+0.07%)
Last: Jan 30, 2026, 09:50 AM
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.
1. Profitability
1.1 Basic Checks
- PDS had positive earnings in the past year.
- In the past year PDS had a positive cash flow from operations.
- 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
- With a Return On Assets value of 2.10%, PDS perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 3.54%, PDS is in line with its industry, outperforming 45.90% of the companies in the same 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.
- PDS had an Average Return On Invested Capital over the past 3 years of 5.10%. This 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 of 3.21%. This is comparable to the rest of the industry: PDS outperforms 44.26% of 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 Gross Margin of 32.97%. This is in the better half of the industry: PDS outperforms 73.77% 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PDS is destroying value.
- Compared to 1 year ago, PDS has less shares outstanding
- PDS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for PDS has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.27, we must say that PDS is in the distress zone and has some risk of bankruptcy.
- PDS has a worse Altman-Z score (1.27) than 68.85% 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.
- With a decent Debt to FCF ratio value of 3.61, PDS is doing good in the industry, outperforming 62.30% of the companies in the same industry.
- 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 | 1.27 |
ROIC/WACC0.6
WACC8.22%
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.
- 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 |
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.
- The Revenue has decreased by -5.55% in the past 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
- 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.
- 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.
- 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
- PDS is valuated quite expensively with a Price/Earnings ratio of 28.92.
- Compared to the rest of the industry, the Price/Earnings ratio of PDS is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, PDS is valued at the same level.
- Based on the Price/Forward Earnings ratio of 13.08, the valuation of PDS can be described as correct.
- Based on the Price/Forward Earnings ratio, PDS is valued cheaper than 90.16% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PDS to the average of the S&P500 Index (25.72), we can say PDS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaper than 93.44% of the companies in the same industry.
- 91.80% 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 | 6.96 | ||
| EV/EBITDA | 4.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y7.18%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
- No dividends for PDS!.
| 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.