Executive Summary
Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services and products. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 8.9% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Fair value with mediocre balance sheet.
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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: PD's weekly volatility (11%) has been stable over the past year.
Market Performance
7 Day Return
1.9%
PD
3.8%
CA Energy Services
-0.5%
CA Market
1 Year Return
-24.4%
PD
-33.6%
CA Energy Services
1.7%
CA Market
Return vs Industry: PD exceeded the Canadian Energy Services industry which returned -33% over the past year.
Return vs Market: PD underperformed the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| PD | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 3.8% | -0.5% |
| 30 Day | 19.5% | 9.8% | 3.4% |
| 90 Day | 51.9% | 52.8% | 12.3% |
| 1 Year | -24.4%-24.4% | -31.2%-33.6% | 5.3%1.7% |
| 3 Year | -68.6%-68.6% | -60.7%-64.4% | 13.0%2.3% |
| 5 Year | -66.8%-66.8% | -45.9%-53.9% | 66.2%40.7% |
Long-Term 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
3 weeks ago | Simply Wall St
Would Shareholders Who Purchased Precision Drilling's (TSE:PD) Stock Five Years Be Happy With The Share price Today?1 month ago | Simply Wall St
What Did Precision Drilling's (TSE:PD) CEO Take Home Last Year?2 months ago | Simply Wall St
Is Precision Drilling (TSE:PD) A Risky Investment?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$29.47) is trading below our estimate of fair value (CA$71.77)
Significantly Below Fair Value: 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 CA 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
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 (0.5x).
Next Steps
Future Growth
How is Precision Drilling forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-8.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PD is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: PD is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: PD is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: PD's revenue (5.5% per year) is forecast to grow slower than the Canadian market (7.8% per year).
High Growth Revenue: PD's revenue (5.5% per year) is forecast to grow slower than 20% 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?
27.4%
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 27.4% 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 (-56.7%).
Return on Equity
High ROE: PD has a negative Return on Equity (-5.73%), as it is currently unprofitable.
Next Steps
Financial Health
How is Precision Drilling's financial position?
Financial Position Analysis
Short Term Liabilities: PD's short term assets (CA$382.2M) exceed its short term liabilities (CA$162.0M).
Long Term Liabilities: PD's short term assets (CA$382.2M) do not cover its long term liabilities (CA$1.4B).
Debt to Equity History and Analysis
Debt Level: PD's debt to equity ratio (93%) is considered high.
Reducing Debt: PD's debt to equity ratio has increased from 89.2% to 93% 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: 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 48.6% per year.
Next Steps
Dividend
What is Precision Drilling 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 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.
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?
4.0yrs
Average management tenure
CEO
Kevin Neveu (59 yo)
14yrs
Tenure
CA$6,641,230
Compensation
Mr. Kevin A. Neveu B.Sc, P.Eng, has been the Chief Executive Officer and President of Precision Drilling Corporation, the Administrator of Precision Drilling Trust since January, 2007. Mr. Neveu served as ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD5.21M) is above average for companies of similar size in the Canadian market ($USD793.66K).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14yrs | CA$6.64m | 0.48% CA$ 2.1m | |
| Senior VP & CFO | 4.75yrs | CA$2.42m | 0.094% CA$ 403.8k | |
| Chief Administrative Officer | 2.5yrs | CA$1.96m | 0.044% CA$ 189.6k | |
| Senior VP | 4.67yrs | CA$1.84m | 0.044% CA$ 188.0k | |
| Chief Marketing Officer | 1.5yrs | CA$2.33m | 0.060% CA$ 259.6k | |
| Executive Vice-President and Chief Operating Officer | no data | no data | no data | |
| Chief Technology Officer | 2.5yrs | CA$2.01m | 0% CA$ 0 | |
| Manager of Investor Relations | no data | no data | no data | |
| Senior Vice President of International Drilling Operations | no data | no data | 0% CA$ 0 | |
| Senior Vice President of North American Drilling Operation | 14yrs | CA$1.39m | 0.0052% CA$ 22.6k | |
| Senior Vice President of Global Operations Excellence | 1.5yrs | no data | 0.0045% CA$ 19.4k | |
| Consultant | 4yrs | CA$1.68m | no data |
4.0yrs
Average Tenure
60yo
Average Age
Experienced Management: PD's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14yrs | CA$6.64m | 0.48% CA$ 2.1m | |
| Independent Chairman of the Board | 3.67yrs | CA$391.38k | 0.0091% CA$ 39.4k | |
| Independent Director | 12.08yrs | CA$278.61k | 0.043% CA$ 184.6k | |
| Independent Director | 2.33yrs | CA$258.71k | 0.026% CA$ 110.3k | |
| Independent Director | 9.33yrs | CA$286.57k | 0.018% CA$ 78.0k | |
| Independent Director | 3.08yrs | CA$258.71k | 0.042% CA$ 181.1k | |
| Independent Director | 9.67yrs | CA$258.71k | 0.066% CA$ 283.3k | |
| Independent Director | 3.33yrs | CA$264.68k | 0.024% CA$ 101.6k |
6.5yrs
Average Tenure
63.5yo
Average Age
Experienced Board: PD's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PD insiders have sold more shares than they have bought 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$430.675m
- Shares outstanding: 13.67m
- 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 |
| PRE1 | 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 | 2021/01/16 00:23 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| 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.