Precision Drilling Corporation Common Stock (PDS)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Precision Drilling as a cyclical, capital-intensive onshore driller whose fortunes depend on exploration-and-production spending. It has scale and 5,245 employees, but the provided numbers do not reveal a durable competitive moat; drilling services are largely commodity-like and pricing is set by rig demand. Business quality is mixed: in fiscal Q2 2026 revenue was $452.8 million, yet net income was -$1.2 million, a -0.26% margin. The supplied growth figures—11.36% revenue growth and -107.35% profit growth—lack a named period in the data, so I treat them as directional rather than proof of a durable trend. The FairStock Score is only 29/100. Financial health is not alarming on leverage—debt-to-equity is 0.43—but the FairStock Altman Z-Score of 0.43 and Piotroski F-Score of 4/9 suggest fragility. Returns are poor: FairStock ROE is -1.92% and ROCE is 2.97%. The positive is cash generation: trailing free cash flow is $118.6 million, a 10.0% FCF yield at the 2026-10-26 close, and FairStock EV/EBITDA is 7.94. At that same close, FairStock P/B is 1.11 and the negative P/E of -58.81 reflects losses. The stock sits near the top of its 52-week range of $56.10-$103.80. FairStock assigns no Lynch category because only 0 years of filed results are available against a need for 3. I would want a larger margin of safety and evidence that FCF is durable through the cycle before calling this a high-quality value opportunity.

In plain English: Precision Drilling provides onshore drilling services to oil and natural gas producers in the U.S., Canada, and internationally. The business looks weak right now: in fiscal Q2 2026 it had revenue of $452.8 million but a net loss of $1.2 million, a -0.26% margin. At the 2026-10-26 close of $98.80, the price looks fair to somewhat cheap against cash flow and accounting value, but not against current earnings because earnings are negative.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer