TSX:PD

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Precision Drilling

Executive Summary

Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services and products. More Details


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.2%

PD

4.7%

CA Energy Services

-0.4%

CA Market


1 Year Return

-30.2%

PD

-53.0%

CA Energy Services

-3.9%

CA Market

Return vs Industry: PD exceeded the Canadian Energy Services industry which returned -53% over the past year.

Return vs Market: PD underperformed the Canadian Market which returned -3.9% over the past year.


Shareholder returns

PDIndustryMarket
7 Day7.2%4.7%-0.4%
30 Day22.4%5.4%3.1%
90 Day15.6%-2.1%2.4%
1 Year-30.2%-30.2%-50.8%-53.0%-0.4%-3.9%
3 Year-68.1%-68.1%-71.9%-74.5%6.7%-3.8%
5 Year-79.7%-80.0%-67.8%-72.7%35.5%14.7%

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

Valuation

Is Precision Drilling undervalued compared to its fair value and its price relative to the market?

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PD (CA$1.04) is trading below our estimate of fair value (CA$1.93)

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 (0.2x) compared to the CA Energy Services industry average (0.4x).


Next Steps

Future Growth

How is Precision Drilling forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

1.0%

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 (5.1% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: PD's revenue (5.1% 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 (-5.1%).


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?

2.3yrs

Average management tenure


CEO

Kevin Neveu (59 yo)

13.75yrs

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 ($USD5.05M) is above average for companies of similar size in the Canadian market ($USD667.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Neveu
President13.75yrsCA$6.64m0.47%
CA$ 1.3m
Carey Ford
Senior VP & CFO4.5yrsCA$2.42m0.090%
CA$ 248.7k
Darren Ruhr
Chief Administrative Officer2.25yrsCA$1.96m0.044%
CA$ 121.6k
Veronica Foley
Senior VP0.75yrCA$1.84m0.043%
CA$ 120.6k
Gene Stahl
Chief Marketing Officer1.25yrsCA$2.33m0.063%
CA$ 175.1k
John Goertzen
Executive Vice-President and Chief Operating Officerno datano datano data
Shuja Goraya
Chief Technology Officer2.25yrsCA$2.01m0.033%
CA$ 91.5k
Dustin Honing
Manager of Investor Relationsno datano datano data
Roland Marks
Senior Vice President of International Drilling Operationsno datano data0.023%
CA$ 63.7k
Grant Hunter
Senior Vice President of North American Drilling Operation13.75yrsCA$1.39m0.0052%
CA$ 14.5k
Ross Pickering
Senior Vice President of Global Operations Excellence1.25yrsno data0.0045%
CA$ 12.5k
Niels Espeland
Consultant3.75yrsCA$1.68mno data

2.3yrs

Average Tenure

60yo

Average Age

Experienced Management: PD's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Neveu
President13.75yrsCA$6.64m0.47%
CA$ 1.3m
Steven Krablin
Independent Chairman of the Board3.42yrsCA$391.38k0.0091%
CA$ 25.3k
William Donovan
Independent Director11.83yrsCA$278.61k0.043%
CA$ 118.4k
David Williams
Independent Director2.08yrsCA$258.71k0.0091%
CA$ 25.3k
Kevin Meyers
Independent Director9.08yrsCA$286.57k0.018%
CA$ 50.0k
Michael Culbert
Independent Director2.83yrsCA$258.71k0.042%
CA$ 116.1k
Brian Gibson
Independent Director9.42yrsCA$258.71k0.089%
CA$ 247.4k
Susan MacKenzie
Independent Director3.08yrsCA$264.68k0.024%
CA$ 65.2k

6.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PD's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$277.245m
  • Shares outstanding: 274.50m
  • Website: https://www.precisiondrilling.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
PDSNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1988
PREDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:10
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.