Price to trailing twelve month operating cash flow for PDS is currently 0.56, higher than just 5.2% of US stocks with positive operating cash flow.
PDS's price/sales ratio is 0.14; that's higher than the P/S ratio of just 6.63% of US stocks.
PRECISION DRILLING Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 142.9%, greater than the shareholder yield of 97.26% of stocks in our set.
If you're looking for stocks that are quantitatively similar to PRECISION DRILLING Corp, a group of peers worth examining would be DSX, AROC, CEIX, SMHI, and HCC.
Precision Drilling Corporation provides customers with access to an extensive fleet of contract drilling rigs, directional drilling services, well service and snubbing rigs, coil-tubing services, camps, rental equipment, and water treatment units. The company was founded in 1951 and is based in Calgary, Canada.
PDS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for PRECISION DRILLING Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that PRECISION DRILLING Corp ranked in the 93th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3012.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PDS, they are:
12% of the company's capital comes from equity, which is greater than just 4.96% of stocks in our cash flow based forecasting set.
PRECISION DRILLING Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), PRECISION DRILLING Corp has a reliance on debt greater than 85.14% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PDS, try PAGP, WMB, TALO, CPG, and NEX.
(Bloomberg) -- Even if the economy continues to recover and a second wave of the pandemic is less damaging than the first, U.S. shale drillers may still take at least a year before moving rigs back into the field, according to the leader of an oilfield-services company.Precision Drilling Corp. Chief Executive Officer Kevin Neveu said activity in U.S. shale basins is in for a “prolonged downturn,” with drilling not rebounding until late in the second quarter of 2021 at the earliest, or the end of next year at the latest. That projection assumes governments respond to secondary Covid-19 outbreaks with less drastic measures than they used in recent months.And if history is any guide, the eventual recovery will be abrupt as drillers respond to a shortage of supply and rising prices, he said...
Precision Drilling Corporation (“Precision”) reminds shareholders that it is holding its 2020 Annual and Special Meeting of Shareholders (“Annual Meeting”) on Thursday, May 14, 2020 at 10:00 a.m. MT. The virtual-only meeting format will provide all shareholders an equal opportunity to participate in the Annual Meeting regardless of their geographic location or concerns related to COVID-19. Registered shareholders and duly appointed proxyholders who participate in the Annual Meeting online will be able to listen to the Annual Meeting, ask questions and vote, all in real time, provided that they are connected to the internet.
Ladies and gentlemen, thank you for standing by, and welcome to the Precision Drilling Corporation 2020 First Quarter Results Conference Call and Webcast. Participating today on the call with me are Kevin Neveu, President and Chief Executive Officer; and Carey Ford, Senior Vice President and Chief Financial Officer.