Executive Summary
Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services and products.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -56.8% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Fair value with questionable track record.
Similar Companies
Share Price & News
How has Precision Drilling's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PD's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.4%
PD
3.9%
CA Energy Services
2.1%
CA Market
1 Year Return
-87.5%
PD
-72.6%
CA Energy Services
-21.2%
CA Market
Return vs Industry: PD underperformed the Canadian Energy Services industry which returned -72.9% over the past year.
Return vs Market: PD underperformed the Canadian Market which returned -22.9% over the past year.
Shareholder returns
| PD | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | 3.9% | 2.1% |
| 30 Day | -39.5% | -46.8% | -13.8% |
| 90 Day | -78.6% | -60.0% | -21.9% |
| 1 Year | -87.5%-87.5% | -71.1%-72.6% | -18.6%-21.2% |
| 3 Year | -92.9%-92.9% | -80.0%-82.0% | -11.0%-19.3% |
| 5 Year | -94.8%-94.9% | -82.5%-84.9% | 1.6%-13.6% |
Price Volatility Vs. Market
How volatile is Precision Drilling's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Precision Drilling Corporation (TSE:PD) Analysts Just Cut Their EPS Forecasts By 58%4 weeks ago | Simply Wall St
Is Precision Drilling Corporation's (TSE:PD) CEO Pay Justified?1 month ago | Simply Wall St
Is Precision Drilling (TSE:PD) Using Too Much Debt?Valuation
Is Precision Drilling undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PD (CA$0.5) is trading below our estimate of fair value (CA$4.29)
Significantly Below Fair Value: PD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PD is poor value based on its PE Ratio (22x) compared to the Energy Services industry average (8.6x).
PE vs Market: PD is poor value based on its PE Ratio (22x) compared to the Canadian market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: PD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PD is good value based on its PB Ratio (0.1x) compared to the CA Energy Services industry average (0.3x).
Next Steps
Future Growth
How is Precision Drilling forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
-56.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PD's earnings are forecast to decline over the next 3 years (-56.8% per year).
Earnings vs Market: PD's earnings are forecast to decline over the next 3 years (-56.8% per year).
High Growth Earnings: PD's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PD's revenue is expected to decline over the next 3 years (-14.8% per year).
High Growth Revenue: PD's revenue is forecast to decline over the next 3 years (-14.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PD is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Precision Drilling performed over the past 5 years?
1.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PD has a large one-off gain of CA$56.9M impacting its December 31 2019 financial results.
Growing Profit Margin: PD became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: PD has become profitable over the past 5 years, growing earnings by 1.9% per year.
Accelerating Growth: PD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: PD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (4.1%).
Return on Equity
High ROE: PD's Return on Equity (0.4%) is considered low.
Next Steps
Financial Health
How is Precision Drilling's financial position?
Financial Position Analysis
Short Term Liabilities: PD's short term assets (CA$417.8M) exceed its short term liabilities (CA$216.1M).
Long Term Liabilities: PD's short term assets (CA$417.8M) do not cover its long term liabilities (CA$1.5B).
Debt to Equity History and Analysis
Debt Level: PD's debt to equity ratio (93.4%) is considered high.
Reducing Debt: PD's debt to equity ratio has increased from 75.9% to 93.4% over the past 5 years.
Debt Coverage: PD's debt is well covered by operating cash flow (20.2%).
Interest Coverage: PD's interest payments on its debt are not well covered by EBIT (0.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Precision Drilling's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PD's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: PD is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PD's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Kevin Neveu (58yo)
13.25s
Tenure
CA$6,641,230
Compensation
Mr. Kevin A. Neveu B.Sc, P.Eng, has been the Chief Executive Officer and President of Precision Drilling Corporation, the Administrator of Precision Drilling Trust since January, 2007. Mr. Neveu served as ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD4.72M) is above average for companies of similar size in the Canadian market ($USD158.50K).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.25yrs | CA$6.64m | 0.45% CA$565.4k | |
| Senior VP & CFO | 4yrs | CA$2.42m | 0.077% CA$97.5k | |
| Chief Technology Officer | 1.75yrs | CA$2.01m | 0.027% CA$34.1k | |
| Senior VP | 3.92yrs | CA$1.84m | 0.044% CA$54.9k | |
| Chief Marketing Officer | 0.75yr | CA$2.33m | 0.061% CA$77.3k | |
| Executive Vice-President and Chief Operating Officer | no data | no data | no data | |
| Chief Administrative Officer | 1.75yrs | CA$1.96m | 0.036% CA$45.4k | |
| Manager of Investor Relations | no data | no data | no data | |
| Senior Vice President of International Drilling Operations | no data | no data | 0.022% CA$28.3k | |
| Senior Vice President of North American Drilling Operation | 13.25yrs | CA$1.39m | 0.0052% CA$6.6k |
3.9yrs
Average Tenure
58yo
Average Age
Experienced Management: PD's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.25yrs | CA$6.64m | 0.45% CA$565.4k | |
| Independent Chairman of the Board | 2.92yrs | CA$391.38k | 0.0091% CA$11.5k | |
| Independent Director | 11.33yrs | CA$278.61k | 0.043% CA$53.9k | |
| Independent Director | 1.58yrs | CA$258.71k | 0.0091% CA$11.5k | |
| Independent Director | 8.58yrs | CA$286.57k | 0.018% CA$22.8k | |
| Independent Director | 2.33yrs | CA$258.71k | 0.042% CA$52.9k | |
| Independent Director | 13.33yrs | CA$278.61k | 0.027% CA$34.2k | |
| Independent Director | 8.92yrs | CA$258.71k | 0.089% CA$112.7k | |
| Independent Director | 2.58yrs | CA$264.68k | 0.024% CA$29.7k |
8.6yrs
Average Tenure
63yo
Average Age
Experienced Board: PD's board of directors are considered experienced (8.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Precision Drilling Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Precision Drilling Corporation
- Ticker: PD
- Exchange: TSX
- Founded: 1951
- Industry: Oil and Gas Drilling
- Sector: Energy
- Market Cap: CA$126.146m
- Shares outstanding: 274.23m
- Website: https://www.precisiondrilling.com
Number of Employees
Location
- Precision Drilling Corporation
- 525–8th Avenue SW
- Suite 800
- Calgary
- Alberta
- T2P 1G1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PD | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Sep 1988 |
| PDS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Sep 1988 |
| PRE | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 1988 |
Biography
Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services and products. The company operates in two segments, Contract Drilling Services, and Completion and Production Services. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the oil and natural gas industry. This segment provides land drilling, directional drilling, and turnkey drilling services; and procures and distributes oilfield supplies, as well as manufactures and refurbishes drilling and service rig equipment. As of December 31, 2019, this segment operated 226 land drilling rigs, including 109 in Canada; 104 in the United States; 6 in Kuwai; 4 in Saudi Arabia; 2 in the Kurdistan region of Iraq; and 1 in the country of Georgia. The Completion and Production Services segment provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; wellsite accommodations; and oilfield surface equipment rentals, as well as pressure control services to oil and natural gas exploration and production companies. As of December 31, 2019, this segment operated 123 well completion and workover service rigs, including 114 in Canada; 9 in the United States; approximately 1,700 oilfield rental items, including surface storage, small-flow wastewater treatment, and power generation and solids control equipment; and 132 wellsite accommodation units in Canada. It also had 42 drilling camps in Canada. Precision Drilling Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 07:12 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.