PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
NYSE:PDS - New York Stock Exchange, Inc. - CA74022D4075 - Common Stock - Currency: USD
Overall PDS gets a fundamental rating of 4 out of 10. We evaluated PDS against 62 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PDS.
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
PDS's Return On Assets of 3.74% is in line compared to the rest of the industry. PDS outperforms 50.00% of its industry peers.
With a Return On Equity value of 6.44%, PDS perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
PDS's Return On Invested Capital of 6.31% is in line compared to the rest of the industry. PDS outperforms 46.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDS is below the industry average of 8.42%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(6.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 6.44% | ||
| ROIC | 6.31% |
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's Profit Margin of 5.84% is in line compared to the rest of the industry. PDS outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of PDS has grown nicely.
PDS has a Operating Margin (11.19%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PDS has grown nicely.
With a decent Gross Margin value of 33.81%, PDS is doing good in the industry, outperforming 67.74% of the companies in the same industry.
PDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 5.84% | ||
| GM | 33.81% |
OM growth 3YN/A
OM growth 5Y21.52%
PM growth 3YN/A
PM growth 5Y68.67%
GM growth 3Y8.2%
GM growth 5Y1.06%
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.
PDS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that PDS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PDS (0.91) is worse than 77.42% of its industry peers.
PDS has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as PDS would need 3.36 years to pay back of all of its debts.
PDS has a Debt to FCF ratio (3.36) which is in line with its industry peers.
A Debt/Equity ratio of 0.37 indicates that PDS is not too dependend on debt financing.
PDS's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. PDS outperforms 53.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.72
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PDS may have some problems paying its short term obligations.
With a Current ratio value of 0.91, PDS is not doing good in the industry: 96.77% of the companies in the same industry are doing better.
A Quick Ratio of 0.82 indicates that PDS may have some problems paying its short term obligations.
PDS has a worse Quick ratio (0.82) than 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for PDS have decreased strongly by -51.22% in the last year.
Measured over the past years, PDS shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.97% on average per year.
PDS shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
Measured over the past years, PDS shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
EPS 1Y (TTM)-51.22%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-13.04%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.96%
3.2 Future
PDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.67% yearly.
PDS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y20.67%
Revenue Next Year-2.48%
Revenue Next 2Y-0.76%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.1%
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
Based on the Price/Earnings ratio of 9.89, the valuation of PDS can be described as reasonable.
79.03% of the companies in the same industry are more expensive than PDS, based on the Price/Earnings ratio.
PDS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 7.33, the valuation of PDS can be described as very cheap.
Based on the Price/Forward Earnings ratio, PDS is valued cheaper than 95.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 7.33 |
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 87.10% of the companies listed in the same industry.
96.77% 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 | 3.63 | ||
| EV/EBITDA | 3.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PDS's earnings are expected to grow with 23.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)0.13
EPS Next 2Y13.61%
EPS Next 3Y23.41%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.65
-0.57 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.44%
Inst Owner Change0%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap684.79M
Analysts80
Price Target75.88 (49.81%)
Short Float %5.36%
Short Ratio6.51
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)0
Avg EPS beat(2)-28.92%
Min EPS beat(2)-46.47%
Max EPS beat(2)-11.37%
EPS beat(4)0
Avg EPS beat(4)-32.63%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)2
Avg EPS beat(8)18.03%
EPS beat(12)5
Avg EPS beat(12)12.42%
EPS beat(16)5
Avg EPS beat(16)-3.05%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-2.41%
Revenue beat(4)0
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.41%
Revenue beat(8)2
Avg Revenue beat(8)-3.14%
Revenue beat(12)5
Avg Revenue beat(12)8.57%
Revenue beat(16)7
Avg Revenue beat(16)5.9%
PT rev (1m)0.64%
PT rev (3m)-13.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-76.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 7.33 | ||
| P/S | 0.5 | ||
| P/FCF | 3.63 | ||
| P/OCF | 1.95 | ||
| P/B | 0.55 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 3.45 |
EPS(TTM)5.12
EY10.11%
EPS(NY)6.91
Fwd EY13.65%
FCF(TTM)13.97
FCFY27.59%
OCF(TTM)25.91
OCFY51.16%
SpS101
BVpS91.55
TBVpS90.82
PEG (NY)1.02
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 6.44% | ||
| ROCE | 8.76% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 6.42% | ||
| OM | 11.19% | ||
| PM (TTM) | 5.84% | ||
| GM | 33.81% | ||
| FCFM | 13.83% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 72.23% | ||
| Cap/Sales | 11.82% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 93.09% | ||
| Profit Quality | 237.04% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.91 |
F-Score6
WACC8.71%
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)-51.22%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-13.04%
EPS Next Y9.74%
EPS Next 2Y13.61%
EPS Next 3Y23.41%
EPS Next 5Y20.67%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.96%
Revenue Next Year-2.48%
Revenue Next 2Y-0.76%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.1%
EBIT growth 1Y-15.15%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year119%
EBIT Next 3Y28.23%
EBIT Next 5Y16.79%
FCF growth 1Y95.91%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y45.11%
OCF growth 3Y51.29%
OCF growth 5Y10.84%