Executive Summary
Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services and products.
Snowflake
Fundamentals
Fair value with moderate growth potential.
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
Market Performance
7 Day Return
1.4%
PD
-1.9%
CA Energy Services
-0.2%
CA Market
1 Year Return
-62.8%
PD
-37.2%
CA Energy Services
1.1%
CA Market
Return vs Industry: PD underperformed the Canadian Energy Services industry which returned -37.2% over the past year.
Return vs Market: PD underperformed the Canadian Market which returned 1.1% over the past year.
Shareholder returns
| PD | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | -1.9% | -0.2% |
| 30 Day | -23.9% | -12.1% | -3.3% |
| 90 Day | -38.3% | -18.8% | -1.6% |
| 1 Year | -62.8%-62.8% | -35.4%-37.2% | 4.6%1.1% |
| 3 Year | -78.1%-78.1% | -44.1%-48.2% | 13.1%3.1% |
| 5 Year | -85.2%-85.9% | -69.6%-72.9% | 24.7%6.7% |
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
1 week ago | Simply Wall St
Is Precision Drilling Corporation (TSE:PD) Excessively Paying Its CEO?4 weeks ago | Simply Wall St
Did You Manage To Avoid Precision Drilling's (TSE:PD) Devastating 85% Share Price Drop?1 month ago | Simply Wall St
The President of Precision Drilling Corporation (TSE:PD), Kevin Neveu, Just Bought 3.4% More SharesValuation
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
Undervalued: PD (CA$1.4) is trading below our estimate of fair value (CA$4.43)
Significantly Undervalued: PD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PD is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.
PE vs Market: PD is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
Low PEG Ratio: Insufficient data to calculate PD's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PD is good value based on its PB Ratio (0.3x) compared to the CA Energy Services industry average (0.8x).
Next Steps
Future Growth
How is Precision Drilling forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
61.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: PD is forecast to become profitable over the next 3 year, which is considered above average market growth.
High Growth Earnings: PD's loss is forecast to worsen by 0% next year.
Revenue vs Market: PD's revenue (3.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).
High Growth Revenue: PD's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High 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?
-23.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: PD is unprofitable, and losses have increased over the past 5 years at a rate of -23.2% per year.
Accelerating Growth: Unable to compare PD's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PD is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (15.8%).
Return on Equity
High ROE: PD has a negative Return on Equity (-14%), as it is currently unprofitable.
Return on Assets
ROA vs Industry: PD is currently unprofitable, so its Return on Assets is negative.
Return on Capital Employed
ROCE Improving: PD is currently unprofitable, so its Return on Capital Employed is negative.
Next Steps
Financial Health
How is Precision Drilling's financial position?
Financial Position Analysis
Short Term Liabilities: PD's short term assets (CA$444.0M) exceeds its short term liabilities (CA$243.0M)
Long Term Liabilities: PD's short term assets (444.0M) do not cover its long term liabilities (1.6B)
Debt to Equity History and Analysis
Debt Level: PD's debt to equity ratio (97.4%) is considered high
Reducing Debt: PD's debt to equity ratio has increased from 69.5% to 97.4% over the past 5 years.
Balance Sheet
Inventory Level: PD has a high level of physical assets or inventory.
Debt Coverage by Assets: PD's debt is not covered by short term assets (assets are 0.3x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable PD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: PD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 79.8% per year.
Next Steps
Dividend
What is Precision Drilling's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
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.
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
What is the CEO of Precision Drilling's salary, the management and board of directors tenure and is there insider trading?
3.4yrs
Average management tenure
CEO
Kevin Neveu (58yo)
12.2yrs
Tenure
CA$6,671,049
Compensation
Mr. Kevin A. Neveu, B.Sc, P.Eng, has been the Chief Executive Officer and President of Precision Drilling Corporation, the Administrator of Precision Drilling Trust since August 14, 2007. Mr. Neveu served ...
CEO Compensation Analysis
Compensation vs. Market: Kevin's total compensation ($USD5.08M) is about average for companies of similar size in the Canadian market ($USD1.08M).
Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
3.4yrs
Average Tenure
58yo
Average Age
Experienced Management: PD's management team is considered experienced (3.4 years average tenure).
Board Age and Tenure
8.1yrs
Average Tenure
63yo
Average Age
Experienced Board: PD's board of directors are considered experienced (8.1 years average tenure).
Insider Trading
Insider Buying: PD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 20,000 |
| Max Price | CA$1.38 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 12,500 |
| Max Price | CA$1.45 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 35,000 |
| Max Price | CA$1.43 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 30,000 |
| Max Price | CA$2.50 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 16,220 |
| Max Price | CA$2.52 |
| Entity | Individual |
| Role | Chief Technology Officer Chief Technology Officer |
| Shares | 3,500 |
| Max Price | CA$3.30 |
| Entity | Individual |
| Role | Chief Technology Officer Chief Technology Officer |
| Shares | 27,000 |
| Max Price | CA$3.17 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 2,000 |
| Max Price | CA$3.27 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 17,750 |
| Max Price | CA$2.31 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 100,000 |
| Max Price | CA$1.75 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | CA$2.60 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 100,000 |
| Max Price | CA$2.68 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 40,000 |
| Max Price | CA$2.64 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | CA$3.17 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | CA$3.17 |
| Entity | Individual |
| Role | Chief Administrative Officer Chief Administrative Officer |
| Shares | 2,000 |
| Max Price | CA$3.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 20,000 |
| Max Price | CA$3.22 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 20,000 |
| Max Price | CA$3.27 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 15,000 |
| Max Price | CA$3.13 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 10,000 |
| Max Price | CA$3.25 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | CA$3.23 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 31,500 |
| Max Price | CA$3.26 |
| Entity | Individual |
| Role | Head of Marketing Chief Marketing Officer |
| Shares | 2,000 |
| Max Price | CA$3.25 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 25,000 |
| Max Price | CA$3.25 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | CA$3.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 12,000 |
| Max Price | CA$3.28 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | CA$3.27 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman of the Board |
| Shares | 10,000 |
| Max Price | CA$3.27 |
Ownership Breakdown
Management Team
John Goertzen (60yo)
Executive Vice-President and Chief Operating Officer
- Tenure: 0yrs
Kevin Neveu (58yo)
President
- Tenure: 12.2yrs
- Compensation: CA$6.67m
Gene Stahl (45yo)
Chief Marketing Officer
- Tenure: 0.3yrs
- Compensation: CA$2.37m
Darren Ruhr
Chief Administrative Officer
- Tenure: 1.3yrs
- Compensation: CA$961.95k
Rolly Marks
Senior Vice President of International Drilling Operations
- Tenure: 0yrs
Grant Hunter
Senior Vice President of North American Drilling Operation
- Tenure: 12.8yrs
- Compensation: CA$1.39m
Carey Ford
Senior VP & CFO
- Tenure: 3.5yrs
- Compensation: CA$2.30m
Veronica Foley
Senior VP
- Tenure: 3.4yrs
- Compensation: CA$1.75m
Shuja Goraya
Chief Technology Officer
- Tenure: 1.3yrs
- Compensation: CA$2.01m
Dustin Honing
Manager of Investor Relations
- Tenure: 0yrs
Board Members
Steve Krablin (67yo)
Independent Chairman of the Board
- Tenure: 2.4yrs
- Compensation: CA$382.50k
Bill Donovan (67yo)
Independent Director
- Tenure: 10.8yrs
- Compensation: CA$272.29k
David Williams (61yo)
Independent Director
- Tenure: 1.1yrs
- Compensation: CA$75.58k
Kevin Meyers (65yo)
Independent Director
- Tenure: 8.1yrs
- Compensation: CA$287.85k
Michael Culbert (62yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: CA$252.84k
Allen Hagerman (68yo)
Independent Director
- Tenure: 12.8yrs
- Compensation: CA$272.29k
Brian Gibson (63yo)
Independent Director
- Tenure: 8.4yrs
- Compensation: CA$252.84k
Kevin Neveu (58yo)
President
- Tenure: 12.2yrs
- Compensation: CA$6.67m
Sue MacKenzie (59yo)
Independent Director
- Tenure: 2.1yrs
- Compensation: CA$254.78k
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$411.295m
- Shares outstanding: 293.78m
- 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/20 00:09 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.