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.

Akita Drilling Ltd.

Cathedral Energy Services Ltd.

Major Drilling Group International, Inc.

Precision Drilling Corp.

Western Energy Services Corp.

High Arctic Energy Services, Inc.

Ensign Energy Services, Inc.

Sonoro Energy Ltd.

Why is Precision Drilling Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.01% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.68% signifying low profitability per unit of shareholders funds

The company declared negative results in Dec'24 after flat results in Sep'24

ROCE(HY) Lowest at 6.36%
INVENTORY TURNOVER RATIO(HY) Lowest at 36.44%
NET PROFIT(Q) At CAD 16.27 MM has Fallen at -40.41%

With ROE of 6.36%, it has a expensive valuation with a 0.68 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.78%, its profits have fallen by -52.8%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.78% returns

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.

107.72%

175.07

41.27%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.53%

EBIT Growth (5y)

33.83%

EBIT to Interest (avg)

1.13

Debt to EBITDA (avg)

3.80

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.77

Tax Ratio

28.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

69.79%

ROCE (avg)

5.12%

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

1.06

EV to EBIT

13.31

EV to EBITDA

4.67

EV to Capital Employed

1.04

EV to Sales

1.24

PEG Ratio

Dividend Yield

ROCE (Latest)

7.82%

ROE (Latest)

4.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 41.57 %

INTEREST COVERAGE RATIO(Q)

Highest at 985.16

-25What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 412.18 MM

ROCE(HY)

Lowest at 0.11%

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.75 times

RAW MATERIAL COST(Y)

Grown by 11.74% (YoY

PRE-TAX PROFIT(Q)

Lowest at CAD -45.31 MM

NET PROFIT(Q)

Lowest at CAD -42.17 MM

EPS(Q)

Lowest at CAD -3.23

Here's what is working for Precision Drilling Corp.

Interest Coverage Ratio

Highest at 985.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 41.57 % 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

Depreciation

Highest at CAD 88.52 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Pre-Tax Profit

At CAD -45.31 MM has Fallen at -248.71%

over average net sales of the previous four periods of CAD 30.47 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -42.17 MM has Fallen at -386.85%

over average net sales of the previous four periods of CAD 14.7 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 412.18 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 33.75 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

Pre-Tax Profit

Lowest at CAD -45.31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -42.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -3.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Raw Material Cost

Grown by 11.74% (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