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PD

Precision Drilling TSX:PD Stock Report

Last Price

CA$86.74

Market Cap

CA$1.1b

7D

-2.0%

1Y

65.9%

Updated

28 Jun, 2022

Data

Company Financials +
PD fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

PD Stock Overview

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East.

Precision Drilling Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Precision Drilling
Historical stock prices
Current Share PriceCA$86.74
52 Week HighCA$109.29
52 Week LowCA$35.82
Beta3.4
1 Month Change-11.98%
3 Month Change-3.74%
1 Year Change65.88%
3 Year Change78.48%
5 Year Change-1.21%
Change since IPO9,993.56%

Recent News & Updates

Shareholder Returns

PDCA Energy ServicesCA Market
7D-2.0%-2.0%0.1%
1Y65.9%5.4%-2.6%

Return vs Industry: PD exceeded the Canadian Energy Services industry which returned 5.4% over the past year.

Return vs Market: PD exceeded the Canadian Market which returned -2.6% over the past year.

Price Volatility

Is PD's price volatile compared to industry and market?
PD volatility
PD Average Weekly Movement9.5%
Energy Services Industry Average Movement8.2%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: PD is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: PD's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19513,350Kevin Neveuhttps://www.precisiondrilling.com

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. 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.

Precision Drilling Fundamentals Summary

How do Precision Drilling's earnings and revenue compare to its market cap?
PD fundamental statistics
Market CapCA$1.12b
Earnings (TTM)-CA$185.12m
Revenue (TTM)CA$1.10b

1.1x

P/S Ratio

-6.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PD income statement (TTM)
RevenueCA$1.10b
Cost of RevenueCA$809.50m
Gross ProfitCA$292.22m
Other ExpensesCA$477.34m
Earnings-CA$185.12m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-13.62
Gross Margin26.52%
Net Profit Margin-16.80%
Debt/Equity Ratio98.6%

How did PD perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PD?

Other financial metrics that can be useful for relative valuation.

PD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA15.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PD's PS Ratio compare to its peers?

PD PS Ratio vs Peers
The above table shows the PS ratio for PD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.8x
ESI Ensign Energy Services
0.6x17.6%CA$665.4m
WRG Western Energy Services
1.1x26.6%CA$162.4m
PHX PHX Energy Services
0.7x17.5%CA$263.9m
AKT.A AKITA Drilling
0.6x21.2%CA$79.7m
PD Precision Drilling
1.1x15.3%CA$1.1b

Price-To-Sales vs Peers: PD is expensive based on its Price-To-Sales Ratio (1.1x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does PD's PE Ratio compare vs other companies in the CA Energy Services Industry?

Price-To-Sales vs Industry: PD is expensive based on its Price-To-Sales Ratio (1.1x) compared to the Canadian Energy Services industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

What is PD's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: PD is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


Share Price vs Fair Value

What is the Fair Price of PD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PD (CA$86.74) is trading below our estimate of fair value (CA$299.32)

Significantly Below Fair Value: PD is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PD's PEG Ratio to determine if it is good value.


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Future Growth

How is Precision Drilling forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


105.2%

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 (1.6%).

Earnings vs Market: PD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PD is expected to become profitable in the next 3 years.

Revenue vs Market: PD's revenue (15.3% per year) is forecast to grow faster than the Canadian market (7% per year).

High Growth Revenue: PD's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PD's Return on Equity is forecast to be low in 3 years time (10.1%).


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Past Performance

How has Precision Drilling performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PD is currently unprofitable.

Growing Profit Margin: PD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PD is unprofitable, but has reduced losses over the past 5 years at a rate of 0.2% 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 (-8%).


Return on Equity

High ROE: PD has a negative Return on Equity (-15.51%), as it is currently unprofitable.


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Financial Health

How is Precision Drilling's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PD's short term assets (CA$392.9M) exceed its short term liabilities (CA$230.2M).

Long Term Liabilities: PD's short term assets (CA$392.9M) do not cover its long term liabilities (CA$1.3B).


Debt to Equity History and Analysis

Debt Level: PD's net debt to equity ratio (96.6%) is considered high.

Reducing Debt: PD's debt to equity ratio has increased from 97.7% to 98.6% over the past 5 years.


Balance Sheet


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: PD has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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 recent payouts.

High Dividend: Unable to evaluate PD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.


Earnings Payout to Shareholders

Earnings Coverage: PD is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PD has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Kevin Neveu (60 yo)

15.42yrs

Tenure

CA$5,241,351

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 t...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD4.07M) is above average for companies of similar size in the Canadian market ($USD1.58M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PD's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: PD's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Precision Drilling Corporation's 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
  • Implied Market Cap: CA$1.121b
  • Shares outstanding: 13.59m
  • Website: https://www.precisiondrilling.com

Number of Employees


Location

  • Precision Drilling Corporation
  • 525–8th Avenue SW
  • Suite 800
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.