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Precision Drilling

TSX:PD
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PD
TSX
CA$749M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services and products. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • Precision Drilling has significant price volatility in the past 3 months.
PD Share Price and Events
7 Day Returns
-10.8%
TSX:PD
0.5%
CA Energy Services
0.6%
CA Market
1 Year Returns
-44.7%
TSX:PD
-26.8%
CA Energy Services
-1.2%
CA Market
PD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Precision Drilling (PD) -10.8% -32.7% -25.2% -44.7% -56% -81.9%
CA Energy Services 0.5% -9% -4.7% -26.8% -13.2% -67.4%
CA Market 0.6% -1.6% 1.6% -1.2% 12.2% 5.5%
1 Year Return vs Industry and Market
  • PD underperformed the Energy Services industry which returned -26.8% over the past year.
  • PD underperformed the Market in Canada which returned -1.2% over the past year.
Price Volatility
PD
Industry
5yr Volatility vs Market

Value

 Is Precision Drilling undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Precision Drilling to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Precision Drilling.

TSX:PD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:PD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.082 (1 + (1- 26.5%) (229.97%))
2.279
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (2 * 5.96%)
13.87%

Discounted Cash Flow Calculation for TSX:PD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Precision Drilling is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:PD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 13.87%)
2019 145.45 Analyst x6 127.74
2020 251.81 Analyst x9 194.21
2021 262.80 Analyst x1 178.00
2022 327.70 Analyst x1 194.93
2023 380.07 Est @ 15.98% 198.55
2024 424.81 Est @ 11.77% 194.90
2025 462.29 Est @ 8.82% 186.27
2026 493.55 Est @ 6.76% 174.64
2027 519.79 Est @ 5.32% 161.53
2028 542.17 Est @ 4.31% 147.96
Present value of next 10 years cash flows CA$1,758.73
TSX:PD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$542.17 × (1 + 1.95%) ÷ (13.87% – 1.95%)
CA$4,636.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$4,636.95 ÷ (1 + 13.87%)10
CA$1,265.47
TSX:PD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,758.73 + CA$1,265.47
CA$3,024.21
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$3,024.21 / 293.72
CA$10.3
TSX:PD Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$10.30
Current discount Discount to share price of CA$2.55
= -1 x (CA$2.55 - CA$10.30) / CA$10.30
75.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Precision Drilling is available for.
Intrinsic value
>50%
Share price is CA$2.55 vs Future cash flow value of CA$10.3
Current Discount Checks
For Precision Drilling to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Precision Drilling's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Precision Drilling's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Precision Drilling's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Precision Drilling's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:PD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$-0.86
TSX:PD Share Price ** TSX (2019-05-23) in CAD CA$2.55
Canada Energy Services Industry PE Ratio Median Figure of 17 Publicly-Listed Energy Services Companies 22.66x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Precision Drilling.

TSX:PD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:PD Share Price ÷ EPS (both in CAD)

= 2.55 ÷ -0.86

-2.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Precision Drilling is loss making, we can't compare its value to the CA Energy Services industry average.
  • Precision Drilling is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Precision Drilling's expected growth come at a high price?
Raw Data
TSX:PD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
60%per year
Canada Energy Services Industry PEG Ratio Median Figure of 13 Publicly-Listed Energy Services Companies 1.07x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Precision Drilling, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Precision Drilling's assets?
Raw Data
TSX:PD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$5.38
TSX:PD Share Price * TSX (2019-05-23) in CAD CA$2.55
Canada Energy Services Industry PB Ratio Median Figure of 42 Publicly-Listed Energy Services Companies 1.04x
Canada Market PB Ratio Median Figure of 2,403 Publicly-Listed Companies 1.44x
TSX:PD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:PD Share Price ÷ Book Value per Share (both in CAD)

= 2.55 ÷ 5.38

0.47x

* Primary Listing of Precision Drilling.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Precision Drilling is good value based on assets compared to the CA Energy Services industry average.
X
Value checks
We assess Precision Drilling's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Precision Drilling has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Precision Drilling expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
60%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Precision Drilling expected to grow at an attractive rate?
  • Precision Drilling's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Precision Drilling's earnings growth is expected to exceed the Canada market average.
  • Precision Drilling's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:PD Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:PD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 60%
TSX:PD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 9.1%
Canada Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 42.7%
Canada Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:PD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:PD Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,101 508 197 1
2021-12-31 1,950 439 135 2
2020-12-31 1,783 359 -25 14
2019-12-31 1,602 297 -23 13
TSX:PD Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,574 296 -251
2018-12-31 1,541 293 -294
2018-09-30 1,461 223 -143
2018-06-30 1,393 248 -139
2018-03-31 1,354 121 -127
2017-12-31 1,321 117 -132
2017-09-30 1,277 65 -116
2017-06-30 1,176 26 -137
2017-03-31 1,070 44 -158
2016-12-31 1,003 123 -156
2016-09-30 1,046 221 -396
2016-06-30 1,196 265 -435

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Precision Drilling's earnings are expected to grow significantly at over 20% yearly.
  • Precision Drilling's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:PD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Precision Drilling Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PD Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.65 0.65 0.65 1.00
2021-12-31 0.45 0.45 0.45 1.00
2020-12-31 -0.08 0.05 -0.16 7.00
2019-12-31 -0.08 -0.02 -0.15 8.00
TSX:PD Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 -0.86
2018-12-31 -1.00
2018-09-30 -0.49
2018-06-30 -0.47
2018-03-31 -0.43
2017-12-31 -0.45
2017-09-30 -0.39
2017-06-30 -0.47
2017-03-31 -0.54
2016-12-31 -0.53
2016-09-30 -1.35
2016-06-30 -1.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Precision Drilling will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Precision Drilling's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Precision Drilling has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Precision Drilling performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Precision Drilling's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Precision Drilling does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Precision Drilling's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Precision Drilling's 1-year growth to the CA Energy Services industry average as it is not currently profitable.
Earnings and Revenue History
Precision Drilling's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Precision Drilling Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PD Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,574.23 -251.18 114.45
2018-12-31 1,541.19 -294.27 112.39
2018-09-30 1,461.37 -142.95 113.34
2018-06-30 1,393.41 -138.59 105.80
2018-03-31 1,353.56 -127.50 93.75
2017-12-31 1,321.22 -132.04 90.07
2017-09-30 1,276.69 -115.65 98.69
2017-06-30 1,175.85 -136.74 97.54
2017-03-31 1,070.18 -158.29 105.79
2016-12-31 1,003.23 -155.56 107.69
2016-09-30 1,045.53 -395.89 106.09
2016-06-30 1,195.95 -435.21 108.62
2016-03-31 1,345.23 -407.35 112.31
2015-12-31 1,555.62 -363.44 126.42
2015-09-30 1,829.20 -206.53 122.79
2015-06-30 2,049.70 -67.02 136.58
2015-03-31 2,190.41 -44.37 145.82
2014-12-31 2,350.54 33.15 144.34
2014-09-30 2,298.92 215.12 152.19
2014-06-30 2,202.78 191.75 152.94
2014-03-31 2,106.51 199.39 143.63
2013-12-31 2,029.98 191.15 142.51
2013-09-30 1,997.02 6.89 138.94
2013-06-30 1,993.33 16.80 134.06
2013-03-31 1,996.40 34.59 127.44
2012-12-31 2,040.74 52.36 126.65
2012-09-30 2,094.20 196.75 132.35
2012-06-30 2,102.38 240.86 123.31

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Precision Drilling has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Precision Drilling has efficiently used its assets last year compared to the CA Energy Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Precision Drilling improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Precision Drilling's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Precision Drilling has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Precision Drilling's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Precision Drilling's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Precision Drilling is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Precision Drilling's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Precision Drilling's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Precision Drilling Company Filings, last reported 1 month ago.

TSX:PD Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,579.17 1,722.43 101.03
2018-12-31 1,557.75 1,706.25 96.63
2018-09-30 1,729.91 1,698.65 109.76
2018-06-30 1,766.07 1,735.84 94.67
2018-03-31 1,802.41 1,776.76 81.87
2017-12-31 1,810.34 1,730.44 65.08
2017-09-30 1,857.38 1,777.67 131.74
2017-06-30 1,893.98 1,844.77 95.06
2017-03-31 1,937.21 1,892.74 120.58
2016-12-31 1,962.12 1,906.93 115.71
2016-09-30 1,975.70 2,005.32 352.19
2016-06-30 2,019.56 2,049.29 455.68
2016-03-31 2,074.10 2,042.85 476.36
2015-12-31 2,121.21 2,180.51 444.76
2015-09-30 2,379.37 2,114.90 438.87
2015-06-30 2,436.34 1,980.58 433.69
2015-03-31 2,493.68 2,009.97 449.18
2014-12-31 2,441.37 1,852.19 491.48
2014-09-30 2,544.08 1,794.32 558.09
2014-06-30 2,468.72 1,716.31 576.49
2014-03-31 2,513.93 1,350.99 106.17
2013-12-31 2,399.34 1,323.27 80.61
2013-09-30 2,276.70 1,270.98 81.82
2013-06-30 2,270.51 1,279.17 127.39
2013-03-31 2,263.58 1,241.15 94.84
2012-12-31 2,171.30 1,218.80 152.77
2012-09-30 2,292.92 1,206.43 226.84
2012-06-30 2,269.35 1,242.99 398.34
  • Precision Drilling's level of debt (109.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.9% vs 109.1% today).
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.

  • Whilst loss making Precision Drilling has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Precision Drilling has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -45.2% per year.
X
Financial health checks
We assess Precision Drilling's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Precision Drilling has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Precision Drilling's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Precision Drilling dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Precision Drilling shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Precision Drilling's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Precision Drilling's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:PD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Canada Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:PD Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00
TSX:PD Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2017-10-30 0.000 0.000
2017-10-27 0.000 0.000
2017-07-31 0.000 0.000
2017-04-25 0.000 0.000
2017-04-24 0.000 0.000
2017-03-10 0.000 0.000
2017-02-09 0.000 0.000
2016-10-24 0.000 0.000
2016-10-21 0.000 0.000
2016-07-22 0.000 0.000
2016-07-21 0.000 0.000
2016-02-16 0.000 0.000
2016-02-11 0.000 0.000
2015-07-23 0.280 5.290
2015-04-27 0.280 3.430
2014-10-27 0.280 3.733
2014-07-24 0.240 1.977
2014-04-28 0.240 1.665
2014-02-13 0.240 1.901
2013-10-24 0.240 2.392
2013-07-25 0.200 1.882
2013-04-25 0.200 2.245
2013-02-14 0.200 2.321
2012-12-10 0.200 2.328
2010-04-22 0.000 0.000
2010-03-30 0.000 0.000
2010-02-12 0.000 0.000
2009-10-22 0.000 0.000
2009-07-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Precision Drilling has not reported any payouts.
  • Unable to verify if Precision Drilling's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Precision Drilling's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Precision Drilling has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Precision Drilling's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Precision Drilling's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Precision Drilling afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Precision Drilling has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Precision Drilling's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Neveu
COMPENSATION CA$6,671,049
AGE 57
TENURE AS CEO 11.8 years
CEO Bio

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 as the President of Rig Technology at National Oilwell Varco Inc., from March 2005 to August 13, 2007. He served as Group President of Rig Solutions Western Hemisphere of National oilwell Inc., from May 2003 to August 13, 2007 and served as President of National Oilwell Inc.'s Downhole Tools Group from June 2000 to August 13, 2007. He served as Vice President and Managing Director of Downhole Tools from 1999 to 2000 served as a Vice President of National Oilwell Inc.'s Canadian drilling equipment and downhole tool operations from 1997 to 1999. He has over 25 years of experience in the oil and gas industry. Beginning in 1982, he held senior management positions with National Oilwell Varco and its predecessor companies in London, Moscow, Houston, Edmonton and Calgary. He has been an Executive Director of Precision Drilling Corporation, the Administrator of Precision Drilling Trust since August 14, 2007. He was Independent Director of Finning International Inc. from December 2013 to May 2018. He serves on the advisory board of the Heart and Stroke Foundation of Alberta and the International Association of Drilling Contractors. He serves as Advisor for the University of Calgary’s School of Public Policy. He served as an Independent Director of Bonanza Creek Energy Inc. from March, 2011 to April 2017. He served as a Director of RigNet Inc. from 2002 to May 9, 2014. He is a Professional Engineer as designated by the Association of Professional Engineers, Geologists and Geophysicists of Alberta. He has also completed the Harvard Advanced Management Program. Areas of expertise, engineering, oil and gas exploration and production oilfield services, manufacturing & executive leadership. He received a BSc Degree in Mechanical Engineering from the University of Alberta and attended the Advanced Management Program at the Harvard Business School in 2002.

CEO Compensation
  • Kevin's compensation has increased whilst company is loss making.
  • Kevin's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Precision Drilling management team in years:

3.1
Average Tenure
57
Average Age
  • The tenure for the Precision Drilling management team is about average.
Management Team

Kevin Neveu

TITLE
President
COMPENSATION
CA$7M
AGE
57
TENURE
11.8 yrs

Carey Ford

TITLE
Senior VP & CFO
COMPENSATION
CA$2M
TENURE
3.1 yrs

Shuja Goraya

TITLE
Chief Technology Officer
COMPENSATION
CA$2M
TENURE
0.8 yrs

Veronica Foley

TITLE
Senior VP
COMPENSATION
CA$2M
TENURE
3 yrs

Gene Stahl

TITLE
President of Drilling Operations
COMPENSATION
CA$2M
AGE
44
TENURE
11.3 yrs

John Goertzen

TITLE
Executive Vice-President and Chief Operating Officer
AGE
59

Darren Ruhr

TITLE
Chief Administrative Officer
COMPENSATION
CA$962K
TENURE
0.8 yrs

Ashley Connolly

TITLE
Manager of Investor Relations

Doug Evasiuk

TITLE
Senior Vice President of Sales & Marketing
COMPENSATION
CA$1M

Grant Hunter

TITLE
Senior Vice President of US Operations
COMPENSATION
CA$1M
TENURE
12.3 yrs
Board of Directors Tenure

Average tenure and age of the Precision Drilling board of directors in years:

7.7
Average Tenure
62
Average Age
  • The tenure for the Precision Drilling board of directors is about average.
Board of Directors

Steve Krablin

TITLE
Chairman of the Board
COMPENSATION
CA$382K
AGE
66
TENURE
2 yrs

Kevin Neveu

TITLE
President
COMPENSATION
CA$7M
AGE
57
TENURE
11.8 yrs

Allen Hagerman

TITLE
Independent Director
COMPENSATION
CA$272K
AGE
67
TENURE
12.4 yrs

Bill Donovan

TITLE
Independent Director
COMPENSATION
CA$272K
AGE
66
TENURE
10.4 yrs

Kevin Meyers

TITLE
Independent Director
COMPENSATION
CA$288K
AGE
64
TENURE
7.7 yrs

Brian Gibson

TITLE
Independent Director
COMPENSATION
CA$253K
AGE
62
TENURE
8 yrs

Sue MacKenzie

TITLE
Independent Director
COMPENSATION
CA$255K
AGE
58
TENURE
1.7 yrs

Michael Culbert

TITLE
Independent Director
COMPENSATION
CA$253K
AGE
61
TENURE
1.4 yrs

David Williams

TITLE
Independent Director
COMPENSATION
CA$76K
AGE
60
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
22. Feb 19 Sell Shuja Goraya Individual 19. Feb 19 19. Feb 19 -3,500 CA$3.30 CA$-11,553
05. Feb 19 Buy Shuja Goraya Individual 29. Oct 18 30. Nov 18 27,000 CA$3.17 CA$81,709
05. Feb 19 Buy Veronica Foley Individual 26. Oct 18 26. Oct 18 2,000 CA$3.27 CA$6,549
26. Dec 18 Buy Carey Ford Individual 26. Dec 18 26. Dec 18 17,750 CA$2.31 CA$41,077
25. Dec 18 Buy Kevin Neveu Individual 21. Dec 18 21. Dec 18 100,000 CA$1.75 CA$175,300
17. Dec 18 Buy Wane Stickland Individual 14. Dec 18 14. Dec 18 10,000 CA$2.60 CA$26,000
13. Dec 18 Buy Kevin Neveu Individual 11. Dec 18 11. Dec 18 100,000 CA$2.68 CA$267,900
11. Dec 18 Buy Brian Gibson Individual 11. Dec 18 11. Dec 18 40,000 CA$2.64 CA$105,600
02. Nov 18 Buy Wane Stickland Individual 01. Nov 18 01. Nov 18 10,000 CA$3.17 CA$31,698
31. Oct 18 Buy Wane Stickland Individual 31. Oct 18 31. Oct 18 10,000 CA$3.17 CA$31,700
29. Oct 18 Buy Carey Ford Individual 26. Oct 18 26. Oct 18 10,000 CA$3.25 CA$32,505
29. Oct 18 Buy Douglas Evasiuk Individual 26. Oct 18 26. Oct 18 10,000 CA$3.23 CA$32,349
29. Oct 18 Buy Susan MacKenzie Individual 26. Oct 18 29. Oct 18 31,500 CA$3.26 CA$101,193
29. Oct 18 Buy Darren Ruhr Individual 26. Oct 18 26. Oct 18 2,000 CA$3.29 CA$6,580
29. Oct 18 Buy Gene Stahl Individual 26. Oct 18 26. Oct 18 2,000 CA$3.25 CA$6,500
29. Oct 18 Buy Kevin Neveu Individual 26. Oct 18 26. Oct 18 25,000 CA$3.25 CA$81,250
29. Oct 18 Buy Brian Gibson Individual 29. Oct 18 29. Oct 18 20,000 CA$3.27 CA$65,440
29. Oct 18 Buy Allen Hagerman Individual 26. Oct 18 26. Oct 18 5,000 CA$3.29 CA$16,425
29. Oct 18 Buy Michael Culbert Individual 29. Oct 18 29. Oct 18 15,000 CA$3.13 CA$46,995
29. Oct 18 Buy Kevin Meyers Individual 26. Oct 18 26. Oct 18 12,000 CA$3.28 CA$39,322
29. Oct 18 Buy David Williams Individual 26. Oct 18 26. Oct 18 10,000 CA$3.27 CA$32,670
29. Oct 18 Buy William Donovan Individual 26. Oct 18 26. Oct 18 20,000 CA$3.22 CA$64,488
29. Oct 18 Buy Steven Krablin Individual 26. Oct 18 26. Oct 18 10,000 CA$3.27 CA$32,727
X
Management checks
We assess Precision Drilling's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Precision Drilling has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Many Precision Drilling Corporation (TSE:PD) Shares Do Institutions Own?

Precision Drilling is a smaller company with a market capitalization of CA$872m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Precision Drilling TSX:PD Ownership Summary, May 10th 2019 What Does The Institutional Ownership Tell Us About Precision Drilling? … We can see that Precision Drilling does have institutional investors; and they hold 53% of the stock.

Simply Wall St -

Could Precision Drilling Corporation's (TSE:PD) Investor Composition Influence The Stock Price?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Precision Drilling isn't enormous, but it's not particularly small either. … It has a market capitalization of CA$1.1b, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

Imagine Owning Precision Drilling (TSE:PD) And Trying To Stomach The 74% Share Price Drop

Given that Precision Drilling didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … Over half a decade Precision Drilling reduced its trailing twelve month revenue by 13% for each year.

Simply Wall St -

Need To Know: Precision Drilling Corporation (TSE:PD) Insiders Have Been Buying Shares

So we'll take a look at whether insiders have been buying or selling shares in Precision Drilling Corporation (TSE:PD). … Precision Drilling Insider Transactions Over The Last Year. … In the last twelve months, the biggest single purchase by an insider was when President Kevin Neveu bought CA$268k worth of shares at a price of CA$2.68 per share.

Simply Wall St -

Should You Worry About Precision Drilling Corporation's (TSE:PD) CEO Pay Cheque?

In 2007 Kevin Neveu was appointed CEO of Precision Drilling Corporation (TSE:PD). … How Does Kevin Neveu's Compensation Compare With Similar Sized Companies. … Our data indicates that Precision Drilling Corporation is worth CA$784m, and total annual CEO compensation is CA$6.2m.

Simply Wall St -

What You Must Know About Precision Drilling Corporation's (TSE:PD) Financial Strength

Investors are always looking for growth in small-cap stocks like Precision Drilling Corporation (TSE:PD), with a market cap of CA$737m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Precision Drilling Corporation (TSE:PD) Insiders Increased Their Holdings

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So before you buy or sell Precision Drilling Corporation (TSE:PD), you may well want to know whether insiders have been buying or selling. … We would never suggest that investors should base their decisions solely on what the directors of a company have been doing.

Simply Wall St -

Can We See Significant Institutional Ownership On The Precision Drilling Corporation (TSE:PD) Share Register?

Every investor in Precision Drilling Corporation (TSE:PD) should be aware of the most powerful shareholder groups. … With a market capitalization of CA$1.0b, Precision Drilling is a small cap stock, so it might not be well known by many institutional investors. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Are Precision Drilling Corporation's (TSE:PD) Interest Costs Too High?

Precision Drilling Corporation (TSE:PD) is a small-cap stock with a market capitalization of CA$1.42b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

How Much is Precision Drilling Corporation's (TSE:PD) CEO Getting Paid?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … Neveu’s pay and compare this to the company’s performance over the same period, as well as measure it against other

Simply Wall St -

Company Info

Description

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’s services include land drilling, directional drilling, and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture, sale, and repair of drilling equipment. As of December 31, 2018, this segment operated 236 land drilling rigs, including 117 in Canada; 102 in the United States; 5 in Kuwait; 5 in Mexico; 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 well completion, workover, abandonment, and re-entry preparation services, as well as snubbing units for pressure control services and equipment rentals to oil and natural gas exploration and production companies. It provides service rigs for well completion, workover, abandonment, and re-entry preparation services; snubbing units for pressure control services; camp and catering services; and wastewater treatment units. This segment also engages in the rental of oilfield surface equipment. This segment operated 198 well completion and workover service rigs, and 12 snubbing units in Canada and 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 43 drilling camps and 4 base camps in Canada; and 10 large-flow wastewater treatment units, 22 pump houses, and 8 potable water production units in Canada. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.

Details
Name: Precision Drilling Corporation
PD
Exchange: TSX
Founded: 1951
CA$748,975,381
293,715,836
Website: http://www.precisiondrilling.com
Address: Precision Drilling Corporation
525–8th Avenue SW,
Suite 800,
Calgary,
Alberta, T2P 1G1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX PD Common Shares The Toronto Stock Exchange CA CAD 22. Sep 1988
NYSE PDS Common Shares New York Stock Exchange US USD 22. Sep 1988
DB PRE Common Shares Deutsche Boerse AG DE EUR 22. Sep 1988
Number of employees
Current staff
Staff numbers
5,471
Precision Drilling employees.
Industry
Oil and Gas Drilling
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:20
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/23
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.