TSX:PD

Stock Analysis Report

Precision Drilling

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

1.4%

PD

-1.9%

CA Energy Services

-0.2%

CA Market


1 Year Return

-62.8%

PD

-37.2%

CA Energy Services

1.1%

CA Market

Return vs Industry: PD underperformed the Canadian Energy Services industry which returned -37.2% over the past year.

Return vs Market: PD underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

PDIndustryMarket
7 Day1.4%-1.9%-0.2%
30 Day-23.9%-12.1%-3.3%
90 Day-38.3%-18.8%-1.6%
1 Year-62.8%-62.8%-35.4%-37.2%4.6%1.1%
3 Year-78.1%-78.1%-44.1%-48.2%13.1%3.1%
5 Year-85.2%-85.9%-69.6%-72.9%24.7%6.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PD (CA$1.4) is trading below our estimate of fair value (CA$4.43)

Significantly Undervalued: 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 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

Low 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 (0.8x).


Next Steps

Future Growth

How is Precision Drilling forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

61.0%

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 (1.9%).

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

High Growth Earnings: PD's loss is forecast to worsen by 0% next year.

Revenue vs Market: PD's revenue (3.1% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: PD's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-23.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PD is unprofitable, and losses have increased over the past 5 years at a rate of -23.2% 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 (15.8%).


Return on Equity

High ROE: PD has a negative Return on Equity (-14%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Precision Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: PD's short term assets (CA$444.0M) exceeds its short term liabilities (CA$243.0M)

Long Term Liabilities: PD's short term assets (444.0M) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: PD's debt to equity ratio (97.4%) is considered high

Reducing Debt: PD's debt to equity ratio has increased from 69.5% to 97.4% over the past 5 years.


Balance Sheet

Inventory Level: PD has a high level of physical assets or inventory.

Debt Coverage by Assets: PD's debt is not covered by short term assets (assets are 0.3x debt).


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 79.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage5.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

3.4yrs

Average management tenure


CEO

Kevin Neveu (58yo)

12.2yrs

Tenure

CA$6,671,049

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 August 14, 2007. Mr. Neveu served  ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD5.08M) is about average for companies of similar size in the Canadian market ($USD1.08M).

Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.4yrs

Average Tenure

58yo

Average Age

Experienced Management: PD's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

63yo

Average Age

Experienced Board: PD's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: PD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$27,60727 Aug 19
Carey Ford
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares20,000
Max PriceCA$1.38
BuyCA$18,12426 Aug 19
Veronica Foley
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares12,500
Max PriceCA$1.45
BuyCA$50,01526 Aug 19
Kevin Neveu
EntityIndividual
Role
Chief Executive Officer
President
Shares35,000
Max PriceCA$1.43
BuyCA$40,69930 May 19
Carey Ford
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares16,220
Max PriceCA$2.52
BuyCA$74,95130 May 19
Kevin Neveu
EntityIndividual
Role
Chief Executive Officer
President
Shares30,000
Max PriceCA$2.50
SellCA$11,55322 Feb 19
Shuja Goraya
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares3,500
Max PriceCA$3.30
BuyCA$6,54905 Feb 19
Veronica Foley
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares2,000
Max PriceCA$3.27
BuyCA$81,70905 Feb 19
Shuja Goraya
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares27,000
Max PriceCA$3.17
BuyCA$41,07726 Dec 18
Carey Ford
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares17,750
Max PriceCA$2.31
BuyCA$175,30025 Dec 18
Kevin Neveu
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceCA$1.75
BuyCA$26,00017 Dec 18
Wane Stickland
EntityIndividual
Shares10,000
Max PriceCA$2.60
BuyCA$267,90013 Dec 18
Kevin Neveu
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceCA$2.68
BuyCA$105,60011 Dec 18
Brian Gibson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,000
Max PriceCA$2.64
BuyCA$31,69802 Nov 18
Wane Stickland
EntityIndividual
Shares10,000
Max PriceCA$3.17
BuyCA$31,70031 Oct 18
Wane Stickland
EntityIndividual
Shares10,000
Max PriceCA$3.17
BuyCA$46,99529 Oct 18
Michael Culbert
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceCA$3.13
BuyCA$32,34929 Oct 18
Douglas Evasiuk
EntityIndividual
Shares10,000
Max PriceCA$3.23
BuyCA$32,50529 Oct 18
Carey Ford
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares10,000
Max PriceCA$3.25
BuyCA$32,72729 Oct 18
Steven Krablin
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceCA$3.27
BuyCA$64,48829 Oct 18
William Donovan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceCA$3.22
BuyCA$16,42529 Oct 18
Allen Hagerman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$3.29
BuyCA$81,25029 Oct 18
Kevin Neveu
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$3.25
BuyCA$39,32229 Oct 18
Kevin Meyers
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceCA$3.28
BuyCA$32,67029 Oct 18
David Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$3.27
BuyCA$101,19329 Oct 18
Susan MacKenzie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares31,500
Max PriceCA$3.26
BuyCA$65,44029 Oct 18
Brian Gibson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceCA$3.27
BuyCA$6,58029 Oct 18
Darren Ruhr
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares2,000
Max PriceCA$3.29
BuyCA$6,50029 Oct 18
Gene Stahl
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares2,000
Max PriceCA$3.25

Ownership Breakdown


Management Team

  • John Goertzen (60yo)

    Executive Vice-President and Chief Operating Officer

    • Tenure: 0yrs
  • Kevin Neveu (58yo)

    President

    • Tenure: 12.2yrs
    • Compensation: CA$6.67m
  • Gene Stahl (45yo)

    Chief Marketing Officer

    • Tenure: 0.3yrs
    • Compensation: CA$2.37m
  • Darren Ruhr

    Chief Administrative Officer

    • Tenure: 1.3yrs
    • Compensation: CA$961.95k
  • Rolly Marks

    Senior Vice President of International Drilling Operations

    • Tenure: 0yrs
  • Grant Hunter

    Senior Vice President of North American Drilling Operation

    • Tenure: 12.8yrs
    • Compensation: CA$1.39m
  • Carey Ford

    Senior VP & CFO

    • Tenure: 3.5yrs
    • Compensation: CA$2.30m
  • Veronica Foley

    Senior VP

    • Tenure: 3.4yrs
    • Compensation: CA$1.75m
  • Shuja Goraya

    Chief Technology Officer

    • Tenure: 1.3yrs
    • Compensation: CA$2.01m
  • Dustin Honing

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Steve Krablin (67yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: CA$382.50k
  • Bill Donovan (67yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: CA$272.29k
  • David Williams (61yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: CA$75.58k
  • Kevin Meyers (65yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: CA$287.85k
  • Michael Culbert (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$252.84k
  • Allen Hagerman (68yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$272.29k
  • Brian Gibson (63yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$252.84k
  • Kevin Neveu (58yo)

    President

    • Tenure: 12.2yrs
    • Compensation: CA$6.67m
  • Sue MacKenzie (59yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: CA$254.78k

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$411.295m
  • Shares outstanding: 293.78m
  • 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 Analysis2019/10/20 00:09
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.