Precision Drilling Corp. (PD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PHX Energy Services Corp.

Major Drilling Group International, Inc.

Cathedral Energy Services Ltd.

High Arctic Energy Services, Inc.

Akita Drilling Ltd.

Western Energy Services Corp.

Precision Drilling Corp.

Ensign Energy Services, Inc.

Sonoro Energy Ltd.

Why is Precision Drilling Corp. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 18.77% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.68% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -13.92%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 7 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CAD 410.7 MM
NET PROFIT(Q) At CAD -1.2 MM has Fallen at -109.23%
ROCE(HY) Lowest at -2.01%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 44.56%, its profits have fallen by -51.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Precision Drilling Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Precision Drilling Corp.

40.88%

256.37

37.45%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.77%

EBIT Growth (5y)

25.68%

EBIT to Interest (avg)

1.94

Debt to EBITDA (avg)

2.78

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.77

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

77.17%

ROCE (avg)

6.51%

ROE (avg)

5.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.95

EV to EBIT

14.62

EV to EBITDA

4.57

EV to Capital Employed

0.96

EV to Sales

1.16

PEG Ratio

Dividend Yield

ROCE (Latest)

6.59%

ROE (Latest)

3.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 39.4 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.76 times

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 410.7 MM

NET PROFIT(Q)

At CAD -1.2 MM has Fallen at -109.23%

ROCE(HY)

Lowest at -2.01%

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.09 times

RAW MATERIAL COST(Y)

Grown by 39.56% (YoY

OPERATING PROFIT(Q)

Lowest at CAD 97.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.43 %

PRE-TAX PROFIT(Q)

Lowest at CAD 3.14 MM

Here's what is working for Precision Drilling Corp.

Debt-Equity Ratio

Lowest at 39.4 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Precision Drilling Corp.

Pre-Tax Profit

At CAD 3.14 MM has Fallen at -87.53%

over average net sales of the previous four periods of CAD 25.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -1.2 MM has Fallen at -109.23%

over average net sales of the previous four periods of CAD 12.95 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 410.7 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Lowest at 33.09 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CAD 97.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 21.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 3.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Raw Material Cost

Grown by 39.56% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales