PRECISION DRILLING CORP (PDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PDS - CA74022D4075 - Common Stock
70.62 USD
+1.32 (+1.9%)
70.62 USD
0 (0%)
PDS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 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 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.
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
The Return On Assets of PDS (2.10%) is comparable to the rest of the industry.
With a Return On Equity value of 3.54%, PDS perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
PDS has a Return On Invested Capital (4.93%) 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 significantly below the industry average of 13.08%.
| 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
The Profit Margin of PDS (3.21%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PDS has grown nicely.
Looking at the Operating Margin, with a value of 9.39%, PDS is in line with its industry, outperforming 53.23% of the companies in the same industry.
PDS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 32.97%, PDS is doing good in the industry, outperforming 72.58% 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 | 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
PDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PDS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PDS has less shares outstanding
The debt/assets ratio for PDS has been reduced compared to a year ago.
2.2 Solvency
PDS has an Altman-Z score of 1.17. This is a bad value and indicates that PDS is not financially healthy and even has some risk of bankruptcy.
PDS's Altman-Z score of 1.17 is on the low side compared to the rest of the industry. PDS is outperformed by 74.19% of its industry peers.
The Debt to FCF ratio of PDS is 3.61, which is a good value as it means it would take PDS, 3.61 years of fcf income to pay off all of its debts.
PDS's Debt to FCF ratio of 3.61 is fine compared to the rest of the industry. PDS outperforms 61.29% of its industry peers.
PDS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PDS (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.6
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.58 indicates that PDS should not have too much problems paying its short term obligations.
PDS's Current ratio of 1.58 is on the low side compared to the rest of the industry. PDS is outperformed by 69.35% of its industry peers.
A Quick Ratio of 1.42 indicates that PDS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.42, PDS perfoms like the industry average, outperforming 43.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for PDS have decreased strongly by -74.60% in the last year.
The Earnings Per Share has been growing by 76.97% on average over the past years. This is a very strong growth
PDS shows a decrease in Revenue. In the last year, the revenue decreased by -5.55%.
PDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
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
The Earnings Per Share is expected to grow by 20.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, PDS will show a small growth in Revenue. The Revenue will grow by 0.33% on average per year.
EPS Next Y-18.52%
EPS Next 2Y7.41%
EPS Next 3Y12.27%
EPS Next 5Y20.41%
Revenue Next Year-3.79%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.44%
Revenue Next 5Y0.33%
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.
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
With a Price/Earnings ratio of 25.31, PDS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PDS.
PDS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
Based on the Price/Forward Earnings ratio of 11.42, the valuation of PDS can be described as reasonable.
90.32% of the companies in the same industry are more expensive than PDS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.40. PDS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDS is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PDS indicates a rather cheap valuation: PDS is cheaper than 93.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.1 | ||
| EV/EBITDA | 4.11 |
4.3 Compensation for Growth
PDS's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y7.41%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
No dividends for PDS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
70.62
+1.32 (+1.9%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners44.58%
Inst Owner Change8.01%
Ins Owners2.73%
Ins Owner ChangeN/A
Market Cap930.07M
Revenue(TTM)1.83B
Net Income(TTM)58.81M
Analysts80
Price Target80.23 (13.61%)
Short Float %1.18%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)323.37%
Min EPS beat(2)-133.63%
Max EPS beat(2)780.37%
EPS beat(4)1
Avg EPS beat(4)147.23%
Min EPS beat(4)-133.63%
Max EPS beat(4)780.37%
EPS beat(8)2
Avg EPS beat(8)100.13%
EPS beat(12)4
Avg EPS beat(12)60.39%
EPS beat(16)6
Avg EPS beat(16)41.26%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)-1.74%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)4
Avg Revenue beat(12)-2.07%
Revenue beat(16)7
Avg Revenue beat(16)6.41%
PT rev (1m)1.68%
PT rev (3m)11.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)43.07%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-17.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 11.42 | ||
| P/S | 0.69 | ||
| P/FCF | 6.1 | ||
| P/OCF | 2.83 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)2.79
EY3.95%
EPS(NY)6.19
Fwd EY8.76%
FCF(TTM)11.57
FCFY16.39%
OCF(TTM)24.94
OCFY35.31%
SpS101.7
BVpS92.22
TBVpS91.65
PEG (NY)N/A
PEG (5Y)0.33
Graham Number76.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 3.54% | ||
| ROCE | 6.84% | ||
| ROIC | 4.93% | ||
| ROICexc | 5% | ||
| ROICexgc | 5.03% | ||
| OM | 9.39% | ||
| PM (TTM) | 3.21% | ||
| GM | 32.97% | ||
| FCFM | 11.38% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 77.33% | ||
| Cap/Sales | 13.14% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 92.93% | ||
| Profit Quality | 354.71% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.17 |
F-Score6
WACC8.27%
ROIC/WACC0.6
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)-74.6%
EPS 3YN/A
EPS 5Y76.97%
EPS Q2Q%-122.08%
EPS Next Y-18.52%
EPS Next 2Y7.41%
EPS Next 3Y12.27%
EPS Next 5Y20.41%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y24.45%
Revenue growth 5Y4.3%
Sales Q2Q%-3.12%
Revenue Next Year-3.79%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.44%
Revenue Next 5Y0.33%
EBIT growth 1Y-30.04%
EBIT growth 3YN/A
EBIT growth 5Y26.74%
EBIT Next Year118.31%
EBIT Next 3Y31.17%
EBIT Next 5Y17.36%
FCF growth 1Y-26.59%
FCF growth 3Y61.26%
FCF growth 5Y15.79%
OCF growth 1Y-8.14%
OCF growth 3Y51.29%
OCF growth 5Y10.84%
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 of PRECISION DRILLING CORP (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.
What are the PE and PB ratios of PRECISION DRILLING CORP (PDS) stock?
The Price/Earnings (PE) ratio for PRECISION DRILLING CORP (PDS) is 25.31 and the Price/Book (PB) ratio is 0.77.
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 -18.52% in the next year.