Precision Drilling Corporation
Precision Drilling Corporation Fundamental Analysis
Precision Drilling Corporation (PDS) shows weak financial fundamentals with a PE ratio of 915.66, profit margin of 0.10%, and ROE of 0.11%. The company generates $1.9B in annual revenue with weak year-over-year growth of -1.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PDS's fundamental strength across five key dimensions:
Efficiency Score
WeakPDS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePDS shows balanced valuation metrics.
Growth Score
WeakPDS faces weak or negative growth trends.
Financial Health Score
ExcellentPDS maintains a strong and stable balance sheet.
Profitability Score
WeakPDS struggles to sustain strong margins.
Key Financial Metrics
Is PDS Expensive or Cheap?
P/E Ratio
PDS trades at 915.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PDS's PEG of -6.59 indicates potential undervaluation.
Price to Book
The market values Precision Drilling Corporation at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.03 times EBITDA. This is generally considered low.
How Well Does PDS Make Money?
Net Profit Margin
For every $100 in sales, Precision Drilling Corporation keeps $0.10 as profit after all expenses.
Operating Margin
Core operations generate 13.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.11 in profit for every $100 of shareholder equity.
ROA
Precision Drilling Corporation generates $0.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Precision Drilling Corporation produces operating cash flow of $414.30M, showing steady but balanced cash generation.
Free Cash Flow
Precision Drilling Corporation produces free cash flow of $149.92M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.44 in free cash annually.
FCF Yield
PDS converts 8.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
915.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.001
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PDS Stacks Against Its Sector Peers
| Metric | PDS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 915.66 | 21.19 | Worse (Expensive) |
| ROE | 0.11% | 948.00% | Weak |
| Net Margin | 0.10% | -73259.00% (disorted) | Weak |
| Debt/Equity | 0.50 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.62 | 6.31 | Neutral |
| ROA | 0.07% | -10913945.00% (disorted) | Weak |
PDS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Precision Drilling Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.11%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1616.81%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
70.94%
Industry Style: Cyclical, Value, Commodity
High Growth