# Precision Drilling (PDS.US)

Canonical: https://gigainvestors.com/s/PDS

Analysis as of: 2026-10-15T06:36:51.197Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $83.54 per share; close as of 2026-10-15.

Estimated value: low $42.89 per share, central $48.60 per share, high $56.20 per share. Buy at or below the central value $48.60 per share. Valuation as of 2026-10-15T06:36:51.197Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 6

- Operating margin variation: 9.80×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.16×

- FY2017: -0.07×

- FY2018: 0.01×

- FY2019: 0.03×

- FY2020: -0.09×

- FY2021: -0.09×

- FY2022: 0.02×

- FY2023: 0.32×

- FY2024: 0.11×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 0.7%

- ROIC, second-lowest year: -3.0%

- Typical minus recent gross margin: -70.7 pp

- Typical gross margin (annual median): 12.1%

- Recent gross margin (lower of latest and 3-year median): 82.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.9%

- ROIC including acquisitions, ten-year median: 3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -3.5%

- FY2017: -2.1%

- FY2018: 0.2%

- FY2019: 1.2%

- FY2020: -2.0%

- FY2021: -3.0%

- FY2022: 1.1%

- FY2023: 24.3%

- FY2024: 6.1%

- FY2025: 3.0%

### economics: pass

- Owner earnings / net income, 5-yr: 3.72×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 710M

- Net income, five-year total: CAD 191M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -2.9 pp

- Working capital / revenue, final three-year average: 15.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.16×

- FY2022: -1.76×

- FY2023: 1.24×

- FY2024: 1.83×

- FY2025: 30.67×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -2.1% vs 6.1%

- Per-share earnings: -10.61 to 7.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: -0.6%

- Market cap gain: CAD 1.2B

- Cumulative retained earnings: CAD -346M

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: -0.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: CAD 18.43

- Per-share value, starting three-year median: CAD -10.61

- Per-share value, ending three-year median: CAD 7.81

- Buybacks concentrated in cheaper years (correlation): 0.46

- Average buyback yield: 15.2%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 29M

- Cumulative net income, 10 years: CAD -479M

- ROIC, first three-year median: -2.1%

- ROIC, last three-year median: 6.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD -10.61

- FY2017: CAD -9.01

- FY2018: CAD -20.05

- FY2019: CAD 0.45

- FY2020: CAD -6.87

- FY2021: CAD -13.32

- FY2022: CAD -2.53

- FY2023: CAD 18.92

- FY2024: CAD 7.81

- FY2025: CAD 0.14

### accounting: pass

- Sloan accruals: -15.0%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 223.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.4%

- FY2017: -6.4%

- FY2018: -16.2%

- FY2019: -8.6%

- FY2020: -11.1%

- FY2021: -11.9%

- FY2022: -9.4%

- FY2023: -7.0%

- FY2024: -12.5%

- FY2025: -15.0%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 7.9% a year for ten years · sales -3.1%

Story as of 2026-10-16T09:59:22.812Z; price observation 2026-10-15.

Price needs cash profits to grow 7.9% a year for ten years

### Sales · FY2024–2025

sales -3.1%; source https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm; observed 2026-03-09.

- FY2016: CAD 951M 

- FY2017: CAD 1.3B 

- FY2018: CAD 1.5B 

- FY2019: CAD 1.5B 

- FY2020: CAD 735M 

- FY2021: CAD 987M 

- FY2022: CAD 1.6B 

- FY2023: CAD 1.9B 

- FY2024: CAD 1.9B 

- FY2025: CAD 1.8B 

### Gross margin · FY2025

gross margin 82.8%; source https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm; observed 2026-03-09.

- FY2017: 1.3% 

- FY2018: 7.0% 

- FY2019: 10.9% 

- FY2020: 1.1% 

- FY2021: 71.4% 

- FY2022: 13.2% 

- FY2023: 37.8% 

- FY2024: 83.7% 

- FY2025: 82.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas drilling; annual sales are CAD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm (filed 2026-03-09); FY2025: revenue 1843704000; grossProfit 1525800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PDS.US: Precision Drilling Corporation, a drilling company, provides onshore drilling services to exploration and production companies in the oil and natural gas and geothermal industries in the United States, Canada, and internationally. It operates through Contract Drilling Services; and Completion and Production Services segments. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the oil, natural gas, and geothermal industry. This segment also offers services, including turnkey drilling contracts; and procurement and distribution of oilfield supplies, as well as manufacture, sale, and repair of drilling and service rig equipment. In addition, the company offers automation solutions for drilling operations comprising AlphaAutomation, AlphaTM, AlphaApps, AlphaAnalytics, and AlphaARMS; and EverGreen suite of environmental solutions. The Completion and Production Services segment provide service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; equipment rentals; and camp and catering services to oil and natural gas exploration and production companies. This segment also operates well completion and workover services. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.

### Why customers stay

Margins ranged from 37.8% to 83.7% during 2023–25; it earns 0.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2023: grossProfit / revenue = 37.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2024: grossProfit / revenue = 83.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm (filed 2026-03-09); FY2025: grossProfit / revenue = 82.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); 10-year return on capital observations [[2016,-0.03475048421465853],[2017,-0.021275367104669738],[2018,0.002388934405030942],[2019,0.012047818712818481],[2020,-0.019770268505048736],[2021,-0.030095884618558735],[2022,0.010889403798338889],[2023,0.24303651873344898],[2024,0.06126861409531496],[2025,0.030456050909808633]]; median 0.006639169101684915. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 10 years; bought back CAD 75.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2016: growth capex 0; upkeep 203472000; owner earnings 32632000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2017: growth capex 0; upkeep 98002000; owner earnings 147708000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2019: growth capex 0; upkeep 160694000; owner earnings 179540000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2020: growth capex 0; upkeep 61592000; owner earnings 92398580. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2021: growth capex 0; upkeep 75941000; owner earnings 28999000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2022: growth capex 0; upkeep 184250000; owner earnings 60492000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2023: growth capex 0; upkeep 226749000; owner earnings 360052000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); FY2024: growth capex 0; upkeep 216647000; owner earnings 203862000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm (filed 2026-03-09); FY2025: growth capex 0; upkeep 263259286; owner earnings 56486714. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,9833000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm (filed 2026-03-09); FY2025: cash repurchases 75561371 CAD.

### Are managers owners

Insiders own 3.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PDS.US SharesStats.PercentInsiders = 3.7150000000000003 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 7.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-09); Ten-year compound average after fade. Initial solved rate 0.09985229314394262. Price 83.54; FX 0.704; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -22.907289561369968 → FY2025 4.2340689603478. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $4.45 per share

- 2016-11: $5.30 per share

- 2016-12: $5.45 per share

- 2017-01: $5.64 per share

- 2017-02: $5.12 per share

- 2017-03: $4.72 per share

- 2017-04: $3.97 per share

- 2017-05: $3.63 per share

- 2017-06: $3.41 per share

- 2017-07: $2.92 per share

- 2017-08: $2.56 per share

- 2017-09: $3.12 per share

- 2017-10: $2.99 per share

- 2017-11: $2.80 per share

- 2017-12: $3.02 per share

- 2018-01: $3.63 per share

- 2018-02: $3.15 per share

- 2018-03: $2.77 per share

- 2018-04: $3.56 per share

- 2018-05: $3.47 per share

- 2018-06: $3.32 per share

- 2018-07: $3.63 per share

- 2018-08: $3.89 per share

- 2018-09: $3.46 per share

- 2018-10: $2.41 per share

- 2018-11: $2.30 per share

- 2018-12: $1.74 per share

- 2019-01: $2.18 per share

- 2019-02: $2.52 per share

- 2019-03: $2.39 per share

- 2019-04: $2.44 per share

- 2019-05: $1.81 per share

- 2019-06: $1.89 per share

- 2019-07: $1.71 per share

- 2019-08: $1.20 per share

- 2019-09: $1.14 per share

- 2019-10: $1.05 per share

- 2019-11: $1.06 per share

- 2019-12: $1.40 per share

- 2020-01: $1.17 per share

- 2020-02: $1.22 per share

- 2020-03: $0.31 per share

- 2020-04: $0.55 per share

- 2020-05: $0.55 per share

- 2020-06: $0.76 per share

- 2020-07: $0.63 per share

- 2020-08: $0.70 per share

- 2020-09: $0.64 per share

- 2020-10: $0.71 per share

- 2020-11: $19.13 per share

- 2020-12: $16.49 per share

- 2021-01: $19.50 per share

- 2021-02: $23.13 per share

- 2021-03: $21.61 per share

- 2021-04: $25.70 per share

- 2021-05: $31.66 per share

- 2021-06: $41.70 per share

- 2021-07: $33.28 per share

- 2021-08: $32.60 per share

- 2021-09: $40.41 per share

- 2021-10: $44.26 per share

- 2021-11: $31.87 per share

- 2021-12: $35.43 per share

- 2022-01: $43.54 per share

- 2022-02: $58.42 per share

- 2022-03: $73.92 per share

- 2022-04: $71.79 per share

- 2022-05: $77.72 per share

- 2022-06: $64.02 per share

- 2022-07: $68.17 per share

- 2022-08: $61.43 per share

- 2022-09: $50.63 per share

- 2022-10: $73.91 per share

- 2022-11: $79.77 per share

- 2022-12: $76.70 per share

- 2023-01: $79.67 per share

- 2023-02: $56.99 per share

- 2023-03: $51.42 per share

- 2023-04: $49.73 per share

- 2023-05: $42.07 per share

- 2023-06: $48.75 per share

- 2023-07: $66.46 per share

- 2023-08: $65.92 per share

- 2023-09: $67.12 per share

- 2023-10: $58.05 per share

- 2023-11: $57.80 per share

- 2023-12: $54.29 per share

- 2024-01: $61.88 per share

- 2024-02: $59.49 per share

- 2024-03: $67.29 per share

- 2024-04: $70.18 per share

- 2024-05: $74.56 per share

- 2024-06: $70.34 per share

- 2024-07: $76.85 per share

- 2024-08: $72.31 per share

- 2024-09: $61.65 per share

- 2024-10: $60.05 per share

- 2024-11: $63.17 per share

- 2024-12: $61.07 per share

- 2025-01: $58.29 per share

- 2025-02: $49.78 per share

- 2025-03: $46.62 per share

- 2025-04: $41.72 per share

- 2025-05: $43.06 per share

- 2025-06: $47.24 per share

- 2025-07: $56.32 per share

- 2025-08: $57.83 per share

- 2025-09: $56.36 per share

- 2025-10: $59.91 per share

- 2025-11: $61.90 per share

- 2025-12: $71.88 per share

- 2026-01: $79.74 per share

- 2026-02: $86.94 per share

- 2026-03: $98.40 per share

- 2026-04: $93.33 per share

- 2026-05: $89.40 per share

- 2026-06: $76.66 per share

- 2026-07: $77.73 per share

- 2026-08: $91.71 per share

- 2026-09: $80.58 per share

- 2026-10: $84.14 per share

## Annual estimated value (USD per share)

- FY2017: low $11.64 per share, central $12.98 per share, high $14.78 per share

- FY2018: low $14.55 per share, central $16.12 per share, high $18.21 per share

- FY2019: low $29.46 per share, central $33.23 per share, high $38.25 per share

- FY2020: low $50.87 per share, central $57.22 per share, high $65.67 per share

- FY2021: low $64.86 per share, central $73.65 per share, high $85.35 per share

- FY2022: low $34.36 per share, central $39.10 per share, high $45.41 per share

- FY2023: low $114.33 per share, central $130.00 per share, high $150.86 per share

- FY2024: low $111.97 per share, central $127.17 per share, high $147.40 per share

- FY2025: low $42.36 per share, central $47.84 per share, high $55.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1013605/000101360526000014/pds-20251231.htm); period 2025-12-31, filed 2026-03-09.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.