Precision Drilling Corp
TSX:PD
Intrinsic Value
Precision Drilling Corp. engages in the provision od onshore drilling, completion, and production services to the oil and natural gas industry. [ Read More ]
The intrinsic value of one
PD
stock under the Base Case scenario is
269.02
CAD.
Compared to the current market price of 94.11 CAD,
Precision Drilling Corp
is
Undervalued by 65%.
PD could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Precision Drilling Corp's market capitalization is 1.3B CAD.
PD stock price is 94.11 CAD.
PD stock price (94.11 CAD) is 65% less than its Intrinsic Value (269.02 CAD).
PD stock price (94.11 CAD) is 57% less than its Relative Value (217.88 CAD). Open Relative Valuation
PD's Revenue is forecast to grow at a rate of 4% per year over the next 3 years.
PD's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 13%.
PD's Revenue has grown by 20% over the past 12 months.
PD's ROE (Return on Equity) for the past 12 months is positive and is equal to 21%.
PD's short-term assets (511m CAD) exceed its short-term liabilties (366m CAD).
PD has positive Free Cash Flow for the last twelve months.
PD's ROIC (Return on Invested Capital) has significantly increased in the last 3 years from -4% to 13%.
PD has positive Gross Profit for the last twelve months.
PD has positive Operating Income for the last twelve months.
PD's ROE (Return on Equity) has significantly increased in the last 3 years from -10% to 21%.
PD has a very low three-year average ROIC (Return on Invested Capital): 0%. The company is not efficient at using invested capital to generate operating income.
PD's Revenue has been growing by an exceptional 27% per year for the last 3 years.
PD's long-term assets (3B CAD) exceed its long-term liabilties (1B CAD).
PD has positive Net Income for the last twelve months.
PD's D/E (Debt to Equity) is very low and is equal to 0.62.
PD has negative three-year average ROE (Return on Equity): -4%. The company is not efficient at transforming stockholders' equity into net income.
PD's Altman Z-Score is very low and is equal to 0.98.
PD has positive Net Debt. This means that the company has more debt (972m CAD) than cash and short-term investments (54m CAD).
PD generates enough operating income (314m CAD) to cover interest payments on its debt (83m CAD).
Valuation Backtest
Precision Drilling Corp
Run backtest to discover the historical profit from buying and selling
PD
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Precision Drilling Corp
Balance Sheet Decomposition
Precision Drilling Corp
| Current Assets | 510.9m |
| Cash & Short-Term Investments | 54.2m |
| Receivables | 421.4m |
| Other Current Assets | 35.3m |
| Non-Current Assets | 2.5B |
| Long-Term Investments | 10m |
| PP&E | 2.4B |
| Intangibles | 17.3m |
| Other Non-Current Assets | 79.3m |
| Current Liabilities | 365.6m |
| Accounts Payable | 342.4m |
| Other Current Liabilities | 23.3m |
| Non-Current Liabilities | 1.1B |
| Long-Term Debt | 972m |
| Other Non-Current Liabilities | 105.8m |
Earnings Waterfall
Precision Drilling Corp
|
Revenue
|
1.9B
CAD
|
|
Cost of Revenue
|
-1.2B
CAD
|
|
Gross Profit
|
733.3m
CAD
|
|
Operating Expenses
|
-419.7m
CAD
|
|
Operating Income
|
313.6m
CAD
|
|
Other Expenses
|
-24.3m
CAD
|
|
Net Income
|
289.2m
CAD
|
Free Cash Flow Analysis
Precision Drilling Corp
PD Profitability Score
Profitability Due Diligence
Precision Drilling Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Precision Drilling Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
PD Solvency Score
Solvency Due Diligence
Precision Drilling Corp's solvency score is 36/100. The higher the solvency score, the more solvent the company is.
Score
Precision Drilling Corp's solvency score is 36/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
PD Price Targets Summary
Precision Drilling Corp
According to Wall Street analysts, the average 1-year price target for
PD
is 125.67 CAD
with a low forecast of 110.35 CAD and a high forecast of 149.1 CAD.
Shareholder Return
PD Price
Precision Drilling Corp
| Average Annual Return | 34.41% |
| Standard Deviation of Annual Returns | 91.82% |
| Max Drawdown | -88% |
| Market Capitalization | 1.3B CAD |
| Shares Outstanding | 14 478 600 |
| Percentage of Shares Shorted | 0.95% |
Company Profile
Precision Drilling Corp
Country
Industry
Market Cap
Dividend Yield
Description
Precision Drilling Corp. engages in the provision od onshore drilling, completion, and production services to the oil and natural gas industry. The company is headquartered in Calgary, Alberta and currently employs 3,900 full-time employees. The company went IPO on 2010-06-02. The firm's segments include Contract Drilling Services and Completion and Production Services. The Contract Drilling Services segment includes drilling rigs, procurement and distribution of oilfield supplies, and manufacture, sale and repair of drilling equipment. The Completion and Production Services segment includes service rigs, oilfield equipment rental and camp and catering services. The company provides onshore drilling services to exploration and production companies in the oil and natural gas and geothermal industries. The company provides well completion, workover, abandonment and re-entry preparation services to oil and natural gas exploration and production companies. The company also provides digital technology offerings.
Contact
IPO
Employees
Officers
The intrinsic value of one
PD
stock under the Base Case scenario is
269.02
CAD.
Compared to the current market price of 94.11 CAD,
Precision Drilling Corp
is
Undervalued by 65%.
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