PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - NYSE:PDS - CA74022D4075 - Common Stock
54.66 USD
+1.17 (+2.19%)
55.35 USD
+0.69 (+1.26%)
Taking everything into account, PDS scores 4 out of 10 in our fundamental rating. PDS was compared to 61 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PDS had positive earnings in the past year.
PDS had a positive operating cash flow in the past year.
In multiple years PDS reported negative net income over the last 5 years.
In the past 5 years PDS always reported a positive cash flow from operatings.
1.2 Ratios
PDS's Return On Assets of 3.82% is in line compared to the rest of the industry. PDS outperforms 55.74% of its industry peers.
PDS has a Return On Equity of 6.31%. This is comparable to the rest of the industry: PDS outperforms 49.18% of its industry peers.
PDS has a Return On Invested Capital (6.21%) which is comparable to the rest of the industry.
PDS had an Average Return On Invested Capital over the past 3 years of 5.10%. This is below the industry average of 8.04%.
The 3 year average ROIC (5.10%) for PDS is below the current ROIC(6.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROIC | 6.21% |
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 (5.67%) which is in line with its industry peers.
PDS's Profit Margin has improved in the last couple of years.
The Operating Margin of PDS (10.90%) is comparable to the rest of the industry.
PDS's Operating Margin has improved in the last couple of years.
The Gross Margin of PDS (33.64%) is better than 67.21% of its industry peers.
PDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% |
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.
Compared to 1 year ago, PDS has an improved debt to assets ratio.
2.2 Solvency
PDS has an Altman-Z score of 1.04. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.04, PDS is doing worse than 75.41% of the companies in the same industry.
PDS has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as PDS would need 3.44 years to pay back of all of its debts.
PDS's Debt to FCF ratio of 3.44 is in line compared to the rest of the industry. PDS outperforms 57.38% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that PDS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.36, PDS perfoms like the industry average, outperforming 55.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.76
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.01 indicates that PDS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, PDS is doing worse than 93.44% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that PDS may have some problems paying its short term obligations.
PDS has a Quick ratio of 0.90. This is amonst the worse of the industry: PDS underperforms 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
PDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.17%.
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 -3.26% in the past year.
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)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
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 16.82% yearly.
The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y-1.28%
EPS Next 2Y1.04%
EPS Next 3Y8.52%
EPS Next 5Y16.82%
Revenue Next Year-4.4%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.46%
Revenue Next 5Y0.09%
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 11.53 indicates a reasonable valuation of PDS.
PDS's Price/Earnings ratio is a bit cheaper when compared to the industry. PDS is cheaper than 77.05% of the companies in the same industry.
PDS is valuated cheaply when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.22, the valuation of PDS can be described as reasonable.
Based on the Price/Forward Earnings ratio, PDS is valued cheaply inside the industry as 88.52% of the companies are valued more expensively.
PDS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PDS is valued cheaply inside the industry as 95.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.63 | ||
| EV/EBITDA | 3.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y1.04%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
PDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.66
+1.17 (+2.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change0%
Ins Owners2.73%
Ins Owner ChangeN/A
Market Cap720.42M
Analysts80
Price Target71.67 (31.12%)
Short Float %2.91%
Short Ratio4.61
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)384.5%
Min EPS beat(2)-11.37%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)178.94%
Min EPS beat(4)-46.47%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)113%
EPS beat(12)5
Avg EPS beat(12)75.63%
EPS beat(16)6
Avg EPS beat(16)47.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-4.3%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.48%
Revenue beat(12)4
Avg Revenue beat(12)-2%
Revenue beat(16)7
Avg Revenue beat(16)6.18%
PT rev (1m)0.56%
PT rev (3m)-5.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)2.59%
EPS NY rev (3m)-10.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 10.22 | ||
| P/S | 0.55 | ||
| P/FCF | 4.63 | ||
| P/OCF | 2.23 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 3.37 |
EPS(TTM)4.74
EY8.67%
EPS(NY)5.35
Fwd EY9.79%
FCF(TTM)11.8
FCFY21.59%
OCF(TTM)24.56
OCFY44.92%
SpS100.1
BVpS89.93
TBVpS89.33
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 6.31% | ||
| ROCE | 8.62% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 6.37% | ||
| OM | 10.9% | ||
| PM (TTM) | 5.67% | ||
| GM | 33.64% | ||
| FCFM | 11.79% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 76.66% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 89.15% | ||
| Profit Quality | 208% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.04 |
F-Score6
WACC8.21%
ROIC/WACC0.76
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)-53.17%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-25.69%
EPS Next Y-1.28%
EPS Next 2Y1.04%
EPS Next 3Y8.52%
EPS Next 5Y16.82%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-5.27%
Revenue Next Year-4.4%
Revenue Next 2Y-1.43%
Revenue Next 3Y-0.46%
Revenue Next 5Y0.09%
EBIT growth 1Y-8.52%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year117.51%
EBIT Next 3Y29.51%
EBIT Next 5Y16.31%
FCF growth 1Y6.23%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y10.84%
OCF growth 3Y51.29%
OCF growth 5Y10.84%