PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
NYSE:PDS - New York Stock Exchange, Inc. - CA74022D4075 - Common Stock - Currency: USD
PDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 58 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 is cheap, but on the other hand it scores bad on growth.
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 (8.42%) is better than 72.41% of its industry peers.
PDS's Return On Equity of 14.68% is fine compared to the rest of the industry. PDS outperforms 67.24% of its industry peers.
PDS has a Return On Invested Capital of 7.53%. This is comparable to the rest of the industry: PDS outperforms 58.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 14.68% | ||
| ROIC | 7.53% |
ROA(3y)0.57%
ROA(5y)-0.44%
ROE(3y)0.37%
ROE(5y)-1.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PDS's Profit Margin of 12.53% is amongst the best of the industry. PDS outperforms 81.03% of its industry peers.
PDS has a Operating Margin of 12.68%. This is in the better half of the industry: PDS outperforms 68.97% of its industry peers.
PDS's Operating Margin has improved in the last couple of years.
The Gross Margin of PDS (35.45%) is better than 70.69% of its industry peers.
In the last couple of years the Gross Margin of PDS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 12.53% | ||
| GM | 35.45% |
OM growth 3YN/A
OM growth 5Y92.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.24%
GM growth 5Y4.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PDS is destroying value.
The number of shares outstanding for PDS has been increased compared to 1 year ago.
The number of shares outstanding for PDS has been reduced compared to 5 years ago.
PDS has a better debt/assets ratio than last year.
2.2 Solvency
PDS has an Altman-Z score of 1.18. 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 1.18, PDS is not doing good in the industry: 74.14% of the companies in the same industry are doing better.
PDS has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as PDS would need 3.41 years to pay back of all of its debts.
PDS's Debt to FCF ratio of 3.41 is in line compared to the rest of the industry. PDS outperforms 56.90% of its industry peers.
PDS has a Debt/Equity ratio of 0.51. This is a neutral value indicating PDS is somewhat dependend on debt financing.
PDS's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. PDS outperforms 43.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.88
WACC8.52%
2.3 Liquidity
PDS has a Current Ratio of 1.54. 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 worse Current ratio (1.54) than 67.24% of its industry peers.
PDS has a Quick Ratio of 1.41. 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 of 1.41. This is in the lower half of the industry: PDS underperforms 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
PDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.61%, which is quite impressive.
Looking at the last year, PDS shows a decrease in Revenue. The Revenue has decreased by -0.02% in the last year.
PDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.69% yearly.
EPS 1Y (TTM)68.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.31%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y27.46%
Revenue growth 5Y4.69%
Sales Q2Q%6.8%
3.2 Future
The Earnings Per Share is expected to grow by 1.64% on average over the next years.
PDS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.28% yearly.
EPS Next Y-45.83%
EPS Next 2Y-21.64%
EPS Next 3Y-11.62%
EPS Next 5Y1.64%
Revenue Next Year-0.25%
Revenue Next 2Y1.08%
Revenue Next 3Y1.44%
Revenue Next 5Y1.28%
3.3 Evolution
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 5.76, the valuation of PDS can be described as very cheap.
Based on the Price/Earnings ratio, PDS is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of PDS to the average of the S&P500 Index (28.51), we can say PDS is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.11, the valuation of PDS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PDS is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PDS to the average of the S&P500 Index (93.88), we can say PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.76 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
PDS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDS is cheaper than 87.93% of the companies in the same industry.
93.10% 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 | 4.82 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
PDS has a very decent profitability rating, which may justify a higher PE ratio.
PDS's earnings are expected to decrease with -11.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.64%
EPS Next 3Y-11.62%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PRECISION DRILLING CORP
NYSE:PDS (1/30/2025, 8:04:00 PM)
After market: 60.04 0 (0%)60.04
-0.99 (-1.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners64.45%
Inst Owner Change0.17%
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap844.76M
Analysts82.11
Price Target91.86 (53%)
Short Float %1.41%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-36.34%
Min EPS beat(2)-65.9%
Max EPS beat(2)-6.79%
EPS beat(4)1
Avg EPS beat(4)53.04%
Min EPS beat(4)-65.9%
Max EPS beat(4)291.93%
EPS beat(8)3
Avg EPS beat(8)16.97%
EPS beat(12)5
Avg EPS beat(12)5.52%
EPS beat(16)7
Avg EPS beat(16)1.48%
Revenue beat(2)0
Avg Revenue beat(2)-5.01%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-2.57%
Revenue beat(4)1
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)0.76%
Revenue beat(8)4
Avg Revenue beat(8)-1.49%
Revenue beat(12)7
Avg Revenue beat(12)9.63%
Revenue beat(16)8
Avg Revenue beat(16)6.47%
PT rev (1m)-1.04%
PT rev (3m)-3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.97%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.76 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.63 | ||
| P/FCF | 4.82 | ||
| P/OCF | 2.49 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 3.76 |
EPS(TTM)10.42
EY17.36%
EPS(NY)7.4
Fwd EY12.33%
FCF(TTM)12.45
FCFY20.73%
OCF(TTM)24.1
OCFY40.13%
SpS95.54
BVpS81.55
TBVpS80.78
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 14.68% | ||
| ROCE | 9.53% | ||
| ROIC | 7.53% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 7.65% | ||
| OM | 12.68% | ||
| PM (TTM) | 12.53% | ||
| GM | 35.45% | ||
| FCFM | 13.03% |
ROA(3y)0.57%
ROA(5y)-0.44%
ROE(3y)0.37%
ROE(5y)-1.4%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y110.35%
ROICexc growth 3YN/A
ROICexc growth 5Y110.53%
OM growth 3YN/A
OM growth 5Y92.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.24%
GM growth 5Y4.26%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 77.38% | ||
| Cap/Sales | 12.19% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 88.7% | ||
| Profit Quality | 104.02% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.18 |
F-Score6
WACC8.52%
ROIC/WACC0.88
Cap/Depr(3y)56.38%
Cap/Depr(5y)47.36%
Cap/Sales(3y)10.26%
Cap/Sales(5y)9.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.31%
EPS Next Y-45.83%
EPS Next 2Y-21.64%
EPS Next 3Y-11.62%
EPS Next 5Y1.64%
Revenue 1Y (TTM)-0.02%
Revenue growth 3Y27.46%
Revenue growth 5Y4.69%
Sales Q2Q%6.8%
Revenue Next Year-0.25%
Revenue Next 2Y1.08%
Revenue Next 3Y1.44%
Revenue Next 5Y1.28%
EBIT growth 1Y-5.63%
EBIT growth 3YN/A
EBIT growth 5Y101.24%
EBIT Next Year73.6%
EBIT Next 3Y22.26%
EBIT Next 5Y11.43%
FCF growth 1Y1591.52%
FCF growth 3Y18.51%
FCF growth 5Y10.37%
OCF growth 1Y255.43%
OCF growth 3Y30.33%
OCF growth 5Y11.28%