| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | CA$86.74 |
| 52 Week High | CA$109.29 |
| 52 Week Low | CA$35.82 |
| Beta | 3.4 |
| 1 Month Change | -11.98% |
| 3 Month Change | -3.74% |
| 1 Year Change | 65.88% |
| 3 Year Change | 78.48% |
| 5 Year Change | -1.21% |
| Change since IPO | 9,993.56% |
Recent News & Updates
Shareholder Returns
| PD | CA Energy Services | CA Market | |
|---|---|---|---|
| 7D | -2.0% | -2.0% | 0.1% |
| 1Y | 65.9% | 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
| PD volatility | |
|---|---|
| PD Average Weekly Movement | 9.5% |
| Energy Services Industry Average Movement | 8.2% |
| Market Average Movement | 10.0% |
| 10% most volatile stocks in CA Market | 17.3% |
| 10% least volatile stocks in CA Market | 4.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1951 | 3,350 | Kevin Neveu | https://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
| PD fundamental statistics | |
|---|---|
| Market Cap | CA$1.12b |
| Earnings (TTM) | -CA$185.12m |
| Revenue (TTM) | CA$1.10b |
1.1x
P/S Ratio-6.4x
P/E RatioIs PD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PD income statement (TTM) | |
|---|---|
| Revenue | CA$1.10b |
| Cost of Revenue | CA$809.50m |
| Gross Profit | CA$292.22m |
| Other Expenses | CA$477.34m |
| Earnings | -CA$185.12m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -13.62 |
| Gross Margin | 26.52% |
| Net Profit Margin | -16.80% |
| Debt/Equity Ratio | 98.6% |
How did PD perform over the long term?
See historical performance and comparisonValuation
Is PD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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.
| What is PD's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | CA$1.12b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.1x |
| Enterprise Value/EBITDA | 15.6x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does PD's PS Ratio compare to its peers?
| PD PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 0.8x | ||
ESI Ensign Energy Services | 0.6x | 17.6% | CA$665.4m |
WRG Western Energy Services | 1.1x | 26.6% | CA$162.4m |
PHX PHX Energy Services | 0.7x | 17.5% | CA$263.9m |
AKT.A AKITA Drilling | 0.6x | 21.2% | CA$79.7m |
PD Precision Drilling | 1.1x | 15.3% | 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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.1x |
| Fair PS Ratio | 1.2x |
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
4/6Future 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
0/6Past 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.
Discover strong past performing companies
Financial Health
How is Precision Drilling's financial position?
Financial Health Score
1/6Financial 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
0/6Dividend 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/28 00:00 |
| End of Day Share Price | 2022/06/28 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.