(PDS) Precision Drilling - Overview
Sector: Energy | Industry: Oil & Gas Drilling | Exchange: NYSE (USA) | Market Cap: 1.157m USD | Total Return: 112% in 12m
Avg Turnover: 8.65M
Qual. Beats: 0
Rev. Trend: 42.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader, Avwap Ph Month, Confidence
Precision Drilling Corporation (PDS) is a Calgary-based provider of onshore drilling and completion services for the oil, natural gas, and geothermal sectors. The company operates primarily through two segments: Contract Drilling Services and Completion and Production Services. Its offerings include turnkey drilling contracts, equipment manufacturing, and a suite of digital automation and environmental solutions aimed at increasing operational efficiency.
The onshore drilling industry is highly cyclical and capital-intensive, with demand closely tied to the capital expenditure budgets of exploration and production companies. Precision Drilling utilizes a fleet of high-specification rigs designed to handle the complex lateral drilling required in unconventional shale plays. Investors can examine detailed financial metrics on ValueRay to further evaluate the companys market position.
In addition to core drilling, the company provides ancillary services such as well abandonment, maintenance, and camp catering. These diversified service lines allow the company to capture revenue across the entire lifecycle of an oil or gas well, from initial spudding to decommissioning.
- North American rig utilization rates dictate contract drilling revenue and cash flow
- High debt leverage makes share price sensitive to interest rate fluctuations
- AlphaAutomation adoption rates drive higher dayrates and improved operational margins
- Capital expenditure shifts by E&P customers directly impact drilling demand cycles
- Expansion of international drilling contracts reduces geographic dependence on Canada and US
| Net Income: -15.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -3.65 > 1.0 |
| NWC/Revenue: 11.14% < 20% (prev -2.41%; Δ 13.54% < -1%) |
| CFO/TA 0.15 > 3% & CFO 412.7m > Net Income -15.3m |
| Net Debt (760.6m) to EBITDA (414.6m): 1.83 < 3 |
| Current Ratio: 1.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (12.9m) vs 12m ago -9.42% < -2% |
| Gross Margin: 70.03% > 18% (prev 68.38%; Δ 1.64% > 0.5%) |
| Asset Turnover: 66.07% > 50% (prev 64.16%; Δ 1.91% > 0%) |
| Interest Coverage Ratio: 1.63 > 6 (EBIT TTM 87.4m / Interest Expense TTM 53.7m) |
| A: 0.08 (Total Current Assets 506.3m - Total Current Liabilities 297.7m) / Total Assets 2.76b |
| B: -0.32 (Retained Earnings -881.5m / Total Assets 2.76b) |
| C: 0.03 (EBIT TTM 87.4m / Avg Total Assets 2.84b) |
| D: 1.44 (Book Value of Equity 1.62b / Total Liabilities 1.13b) |
| Altman-Z'' = 1.17 = BB |
| DSRI: 1.03 (Receivables 411.3m/397.7m, Revenue 1.87b/1.87b) |
| GMI: 0.98 (GM 68.38% / 70.03%) |
| AQI: 0.82 (AQ_t 0.01 / AQ_t-1 0.01) |
| SGI: 1.00 (Revenue 1.87b / 1.87b) |
| TATA: -0.16 (NI -15.3m - CFO 412.7m) / TA 2.76b) |
| Beneish M = -3.14 (Cap -4..+1) = AA |
As of June 05, 2026, the stock is trading at USD 98.66 with a total of 94,800 shares traded.
Over the past week, the price has changed by +9.48%,
over one month by +3.33%,
over three months by +12.11% and
over the past year by +112.04%.
Precision Drilling has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy PDS.
- StrongBuy: 4
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 103 | 4.4% |
Market Cap CAD = 1.61b (1.16b USD * 1.3906 USD.CAD)
P/E Forward = 14.771
P/S = 0.6175
P/B = 0.9871
P/EG = 33.3179
Revenue TTM = 1.87b CAD
EBIT TTM = 87.4m CAD
EBITDA TTM = 414.6m CAD
Long Term Debt = 663.9m CAD (from longTermDebt, last quarter)
Short Term Debt = 18.7m CAD (from shortTermDebt, last quarter)
Debt = 802.2m CAD (from shortLongTermDebtTotal, last quarter) + Leases 68.2m
Net Debt = 760.6m CAD (calculated: Debt 802.2m - CCE 41.6m)
Enterprise Value = 2.37b CAD (1.61b + Debt 802.2m - CCE 41.6m)
Interest Coverage Ratio = 1.63 (Ebit TTM 87.4m / Interest Expense TTM 53.7m)
EV/FCF = 16.45x (Enterprise Value 2.37b / FCF TTM 144.1m)
FCF Yield = 6.08% (FCF TTM 144.1m / Enterprise Value 2.37b)
FCF Margin = 7.69% (FCF TTM 144.1m / Revenue TTM 1.87b)
Net Margin = -0.82% (Net Income TTM -15.3m / Revenue TTM 1.87b)
Gross Margin = 70.03% ((Revenue TTM 1.87b - Cost of Revenue TTM 561.5m) / Revenue TTM)
Gross Margin QoQ = 83.97% (prev 81.50%)
Tobins Q-Ratio = 0.86 (Enterprise Value 2.37b / Total Assets 2.76b)
Interest Expense / Debt = 6.69% (Interest Expense 53.7m / Debt 802.2m)
Taxrate = 34.05% (9.21m / 27.1m)
NOPAT = 57.6m (EBIT 87.4m * (1 - 34.05%))
Current Ratio = 1.70 (Total Current Assets 506.3m / Total Current Liabilities 297.7m)
Debt / Equity = 0.49 (Debt 802.2m / totalStockholderEquity, last quarter 1.62b)
Debt / EBITDA = 1.83 (Net Debt 760.6m / EBITDA 414.6m)
Debt / FCF = 5.28 (Net Debt 760.6m / FCF TTM 144.1m)
Total Stockholder Equity = 1.63b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.54% (Net Income -15.3m / Total Assets 2.76b)
RoE = -0.94% (Net Income TTM -15.3m / Total Stockholder Equity 1.63b)
RoCE = 3.81% (EBIT 87.4m / Capital Employed (Equity 1.63b + L.T.Debt 663.9m))
RoIC = 2.37% (NOPAT 57.6m / Invested Capital 2.43b)
WACC = 7.43% (E(1.61b)/V(2.41b) * Re(8.93%) + D(802.2m)/V(2.41b) * Rd(6.69%) * (1-Tc(0.34)))
Discount Rate = 8.93% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -82.81 | Cagr: -7.73%
[DCF] Terminal Value 73.10% ; FCFF base≈190.0m ; Y1≈166.6m ; Y5≈134.6m
[DCF] Fair Price = 108.2 (EV 2.16b - Net Debt 760.6m = Equity 1.40b / Shares 12.9m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.62 | # QB: 0
Revenue Correlation: 42.86 | Revenue CAGR: 1.17% | SUE: 0.26 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.15 | Chg30d=+11.64% | Revisions=+0% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.47 | Chg30d=+21.81% | Revisions=+33% | Analysts=5
EPS current Year (2026-12-31): EPS=7.71 | Chg30d=+4.27% | Revisions=+0% | GrowthEPS=+49.2% | GrowthRev=+7.6%
EPS next Year (2027-12-31): EPS=11.91 | Chg30d=+32.92% | Revisions=+25% | GrowthEPS=+54.6% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: +33%