PDS

Precision Drilling

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Energy

industry

Oil & Gas Drilling

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

04/29/26

Business Summary

Precision Drilling generates cash by contracting drilling rigs and related services to exploration and production companies, monetizing utilization rates and day rates across its fleet. The business lives and dies by operational efficiency, equipment scale, and long-term customer relationships rather than pricing power. Its moat is operational depth—fleet size, technical expertise, and logistical integration—allowing it to secure repeat contracts in demanding environments. However, this is a scale-and-cycle moat, not a structural one; returns depend heavily on energy capital spending and disciplined cost control.

 


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VALUATION

P/E

500+

Market Cap ($M USD)

$1,192

Forward P/E

10.3

PEG

0.8

PRICE TO SALES

0.9

PRICE TO BOOK

1

EV / EBITDA

5.4

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.10

Next Year EPS Growth Estimate

$8.92

Next Year Revenue Growth Estimate

3.10%

Return on Equity (ROE)

0.10%

FREE CASH FLOW

Operating Margin

5.70%

Debt-to-Equity

0.5

Piotroski F-Score

6

Altman Z-Score

1.3

Return on Invested Capital (ROIC)

2.00%

Current Ratio

1.6

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

The market is broadcasting extreme distortion here: a trailing P/E of 500+ alongside a Forward P/E of 10.3 tells you earnings are expected to normalize violently, yet the Altman Z-Score of 1.3 signals balance sheet stress that cannot be ignored. A PEG Forward of 0.8 suggests theoretical undervaluation relative to growth, but that signal is compromised by razor-thin Operating Margin of 0.10% and a meager 3.10% Return on Equity. This is not a clean growth story—it’s a cyclical balance sheet gamble priced as if earnings recovery is imminent while financial fragility remains real. The stock looks statistically cheap on forward metrics, but safety is questionable given solvency indicators.

AI Exposure / Tech Reliance

Oil & Gas Drilling is capital-intensive and increasingly data-driven, meaning AI adoption would likely focus on drilling optimization, predictive maintenance, and cost efficiency rather than product disruption. The company’s ability to protect its 0.10% Operating Margin will depend heavily on operational technology improvements. In a commoditized services market, tech adoption is defensive, not transformative.

The Bull Case

A disciplined value or GARP investor sees a setup where pessimism has already crushed trailing optics but forward metrics imply normalization. The Forward P/E of 10.3 combined with a PEG Forward of 0.8 signals that projected growth is being priced cheaply relative to expectations, and the Piotroski F-Score of 6 suggests middling but not deteriorating financial quality. Price/Book at 1 and Price/Sales at 0.9 indicate the market is valuing the company close to its accounting equity and below 1x revenue, which historically aligns with deep value entry points in cyclical industries. A Current Ratio of 1.6 shows near-term liquidity is manageable, and ROIC at 2.00%—while low—remains positive, suggesting capital is not being destroyed outright. For investors betting on a drilling cycle stabilization, this is a statistically inexpensive recovery play.

The Bear Case

Now the hard truth: Debt/Equity of 5.70 is aggressive, and paired with an Altman Z-Score of 1.3 it screams balance sheet vulnerability. Operating Margin of 0.10% leaves virtually no room for error in a volatile commodity environment, and Return on Equity of 3.10% is far below what equity holders should demand for this level of leverage. The earnings profile is erratic—EPS of 5.4 collapsing to an estimated $0.10 next year—explaining the absurd 500+ trailing P/E and highlighting how fragile profitability really is. This is a highly levered cyclical operator with thin margins, meaning any downturn or pricing pressure could rapidly impair equity value.

Market Sentiment & Smart Money

Short Interest %

2.40%

Analyst Consensus

1.85

Average Analyst Price Target

$107.73

Institutional Ownership %

64.90%

1-Year Beta

0.67

Insider Buying % (6 Mo)

2.80%%

Distance to 52-Week High

88.80%

Distance to 52-Week Low

232.50%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.