PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
NYSE:PDS - New York Stock Exchange, Inc. - CA74022D4075 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PDS. PDS was compared to 59 industry peers in the Energy Equipment & Services industry. PDS has only an average score on both its financial health and profitability. PDS may be a bit undervalued, certainly considering the very reasonable score on growth
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.
The reported net income has been mixed in the past 5 years: PDS reported negative net income in multiple years.
PDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PDS has a Return On Assets of 3.77%. This is comparable to the rest of the industry: PDS outperforms 53.45% of its industry peers.
PDS has a Return On Equity (6.64%) which is comparable to the rest of the industry.
PDS has a Return On Invested Capital (5.83%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PDS is below the industry average of 8.11%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(5.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.64% | ||
| ROIC | 5.83% |
ROA(3y)4.05%
ROA(5y)0.27%
ROE(3y)7.4%
ROE(5y)-0.16%
ROIC(3y)5.1%
ROIC(5y)N/A
1.3 Margins
PDS has a Profit Margin (5.85%) which is comparable to the rest of the industry.
PDS's Profit Margin has improved in the last couple of years.
The Operating Margin of PDS (11.14%) is better than 60.34% of its industry peers.
In the last couple of years the Operating Margin of PDS has grown nicely.
Looking at the Gross Margin, with a value of 34.36%, PDS is in the better half of the industry, outperforming 67.24% 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 | 11.14% | ||
| PM (TTM) | 5.85% | ||
| GM | 34.36% |
OM growth 3YN/A
OM growth 5Y21.52%
PM growth 3YN/A
PM growth 5Y68.71%
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
Compared to 5 years ago, PDS has less shares outstanding
PDS has a better debt/assets ratio than last year.
2.2 Solvency
PDS has an Altman-Z score of 0.98. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
PDS has a Altman-Z score of 0.98. This is in the lower half of the industry: PDS underperforms 74.14% of its industry peers.
PDS has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as PDS would need 3.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.34, PDS is in line with its industry, outperforming 56.90% of the companies in the same industry.
PDS has a Debt/Equity ratio of 0.52. This is a neutral value indicating PDS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, PDS is in line with its industry, outperforming 43.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.69
WACC8.42%
2.3 Liquidity
PDS has a Current Ratio of 1.48. This is a normal value and indicates that PDS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.48, PDS is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
A Quick Ratio of 1.35 indicates that PDS should not have too much problems paying its short term obligations.
PDS has a worse Quick ratio (1.35) than 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for PDS have decreased strongly by -57.69% in the last year.
PDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 77.02% yearly.
The Revenue has decreased by -1.83% 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)-57.69%
EPS 3YN/A
EPS 5Y77.02%
EPS Q2Q%-87.59%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.59%
3.2 Future
PDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.54% yearly.
Based on estimates for the next years, PDS will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y13.17%
EPS Next 2Y14.97%
EPS Next 3Y23.26%
EPS Next 5Y26.54%
Revenue Next Year0.91%
Revenue Next 2Y1.9%
Revenue Next 3Y1.95%
Revenue Next 5Y1.76%
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 9.06 indicates a reasonable valuation of PDS.
Compared to the rest of the industry, the Price/Earnings ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 81.03% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.98. PDS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.01 indicates a reasonable valuation of PDS.
Based on the Price/Forward Earnings ratio, PDS is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, PDS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaper than 89.66% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 96.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 3.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PDS may justify a higher PE ratio.
A more expensive valuation may be justified as PDS's earnings are expected to grow with 23.26% in the coming years.
PEG (NY)0.69
PEG (5Y)0.12
EPS Next 2Y14.97%
EPS Next 3Y23.26%
5. Dividend
5.1 Amount
No dividends for PDS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:PDS (3/3/2025, 3:05:09 PM)
46.29
-3.49 (-7.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner Change-1.25%
Ins Owners2.15%
Ins Owner ChangeN/A
Market Cap637.88M
Analysts82.11
Price Target90.95 (96.48%)
Short Float %1.39%
Short Ratio2.43
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)-25.95%
Min EPS beat(2)-45.11%
Max EPS beat(2)-6.79%
EPS beat(4)0
Avg EPS beat(4)-31.22%
Min EPS beat(4)-65.9%
Max EPS beat(4)-6.79%
EPS beat(8)3
Avg EPS beat(8)23.07%
EPS beat(12)5
Avg EPS beat(12)2.67%
EPS beat(16)6
Avg EPS beat(16)-2.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-3.53%
Revenue beat(4)0
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-2.57%
Revenue beat(8)3
Avg Revenue beat(8)-2.21%
Revenue beat(12)6
Avg Revenue beat(12)9.22%
Revenue beat(16)8
Avg Revenue beat(16)6.27%
PT rev (1m)0%
PT rev (3m)-2.62%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)-9.88%
EPS NY rev (3m)-22.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-1.82%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.01 | ||
| P/S | 0.48 | ||
| P/FCF | 3.47 | ||
| P/OCF | 1.91 | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 3.46 |
EPS(TTM)5.11
EY11.04%
EPS(NY)5.78
Fwd EY12.48%
FCF(TTM)13.35
FCFY28.84%
OCF(TTM)24.25
OCFY52.39%
SpS95.69
BVpS84.38
TBVpS83.73
PEG (NY)0.69
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 6.64% | ||
| ROCE | 8.1% | ||
| ROIC | 5.83% | ||
| ROICexc | 6% | ||
| ROICexgc | 6.03% | ||
| OM | 11.14% | ||
| PM (TTM) | 5.85% | ||
| GM | 34.36% | ||
| FCFM | 13.95% |
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 5Y68.71%
GM growth 3Y8.2%
GM growth 5Y1.06%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 70.06% | ||
| Cap/Sales | 11.39% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 92.49% | ||
| Profit Quality | 238.38% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 0.98 |
F-Score7
WACC8.42%
ROIC/WACC0.69
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)-57.69%
EPS 3YN/A
EPS 5Y77.02%
EPS Q2Q%-87.59%
EPS Next Y13.17%
EPS Next 2Y14.97%
EPS Next 3Y23.26%
EPS Next 5Y26.54%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.59%
Revenue Next Year0.91%
Revenue Next 2Y1.9%
Revenue Next 3Y1.95%
Revenue Next 5Y1.76%
EBIT growth 1Y-32.42%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year150.56%
EBIT Next 3Y33.57%
EBIT Next 5Y24.58%
FCF growth 1Y-3.08%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y-3.69%
OCF growth 3Y51.29%
OCF growth 5Y10.84%