Latest Ratios: P/E Ratio 864.2x · EV/EBITDA 5.2x · ROE 0.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.1B | $959M | $869M | $830M | $1.0B | $472M | $226M | $416M | $511M | $886M | $1.6B |
| Enterprise Value | $1.6B | $1.6B | $1.7B | $1.8B | $2.2B | $1.6B | $1.4B | $1.8B | $2.1B | $2.6B | $3.4B |
| P/E Ratio → | 864.16 | 513.43 | 7.82 | 2.78 | — | — | — | 62.22 | — | — | — |
| P/S Ratio | 0.84 | 0.52 | 0.46 | 0.43 | 0.64 | 0.48 | 0.31 | 0.27 | 0.33 | 0.67 | 1.68 |
| P/B Ratio | 1.02 | 0.60 | 0.52 | 0.53 | 0.84 | 0.38 | 0.16 | 0.27 | 0.33 | 0.49 | 0.81 |
| P/FCF | 10.46 | 6.45 | 3.27 | 3.03 | 19.66 | 7.45 | 1.38 | 3.26 | 3.06 | 47.73 | — |
| P/OCF | 3.78 | 2.33 | 1.80 | 1.66 | 4.38 | 3.39 | 1.00 | 1.44 | 1.74 | 7.60 | 13.04 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.88 | 0.88 | 0.91 | 1.34 | 1.62 | 1.93 | 1.19 | 1.38 | 1.93 | 3.56 |
| EV / EBITDA | 5.24 | 3.83 | 3.23 | 1.97 | 7.22 | 8.28 | 7.69 | 4.86 | 5.65 | 8.81 | 14.38 |
| EV / EBIT | 21.15 | 14.48 | 7.55 | 5.64 | 29.47 | — | — | 41.29 | — | — | — |
| EV / FCF | — | 10.89 | 6.34 | 6.46 | 41.08 | 25.23 | 8.60 | 14.40 | 12.68 | 137.49 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.8% | 82.8% | 83.7% | 37.8% | 13.2% | 71.4% | 1.1% | 10.9% | 7.0% | 1.3% | -5.0% |
| Operating Margin | 5.7% | 5.7% | 11.1% | 31.5% | 2.0% | -9.1% | -8.7% | 2.9% | 0.6% | -6.7% | -16.4% |
| Net Profit Margin | 0.1% | 0.1% | 5.8% | 14.9% | -2.1% | -18.0% | -12.8% | 0.4% | -19.1% | -10.0% | -16.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.1% | 0.1% | 6.8% | 20.6% | -2.8% | -13.5% | -6.4% | 0.4% | -17.5% | -7.0% | -7.6% |
| ROA | 0.1% | 0.1% | 3.7% | 9.8% | -1.2% | -6.4% | -3.1% | 0.2% | -7.8% | -3.2% | -3.4% |
| ROIC | 3.3% | 3.3% | 6.3% | 18.8% | 1.0% | -2.7% | -1.7% | 1.1% | 0.2% | -1.8% | -3.1% |
| ROCE | 4.1% | 4.1% | 8.0% | 23.9% | 1.3% | -3.5% | -2.2% | 1.4% | 0.3% | -2.3% | -3.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.47 | 0.47 | 0.53 | 0.63 | 0.94 | 0.95 | 0.92 | 0.98 | 1.10 | 0.96 | 0.97 |
| Debt / EBITDA | 1.76 | 1.76 | 1.70 | 1.11 | 3.84 | 6.05 | 7.05 | 3.95 | 4.55 | 5.97 | 8.09 |
| Net Debt / Equity | — | 0.41 | 0.48 | 0.60 | 0.92 | 0.92 | 0.84 | 0.93 | 1.03 | 0.92 | 0.91 |
| Net Debt / EBITDA | 1.56 | 1.56 | 1.56 | 1.05 | 3.77 | 5.84 | 6.46 | 3.76 | 4.29 | 5.75 | 7.60 |
| Debt / FCF | — | 4.43 | 3.07 | 3.43 | 21.42 | 17.78 | 7.22 | 11.14 | 9.63 | 89.76 | — |
| Interest Coverage | — | — | 3.26 | 3.70 | 0.84 | -1.10 | -0.01 | 0.38 | -1.58 | -0.74 | -1.16 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.62 | 1.62 | 1.48 | 1.40 | 1.11 | 1.34 | 2.05 | 1.93 | 1.85 | 2.11 | 1.96 |
| Quick Ratio | 1.46 | 1.46 | 1.35 | 1.30 | 1.03 | 1.24 | 1.89 | 1.79 | 1.73 | 1.99 | 1.86 |
| Cash Ratio | 0.29 | 0.29 | 0.22 | 0.15 | 0.05 | 0.17 | 0.65 | 0.35 | 0.34 | 0.31 | 0.48 |
| Asset Turnover | — | 0.68 | 0.64 | 0.64 | 0.56 | 0.37 | 0.25 | 0.47 | 0.42 | 0.34 | 0.22 |
| Inventory Turnover | 6.49 | 6.49 | 7.14 | 34.15 | 39.92 | 12.05 | 27.65 | 43.27 | 42.06 | 52.94 | 41.39 |
| Days Sales Outstanding | — | 69.71 | 72.66 | 79.38 | 93.42 | 66.44 | 64.95 | 73.73 | 73.89 | 97.25 | 91.24 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.1% | 0.2% | 12.8% | 36.0% | — | — | — | 1.6% | — | — | — |
| FCF Yield | 9.6% | 15.5% | 30.5% | 33.0% | 5.1% | 13.4% | 72.7% | 30.6% | 32.7% | 2.1% | — |
| Buyback Yield | 4.9% | 7.9% | 8.7% | 3.6% | 1.0% | 0.9% | 5.0% | 6.2% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.9% | 7.9% | 8.7% | 3.6% | 1.0% | 0.9% | 5.0% | 6.2% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $13M | $14M | $15M | $14M | $13M | $14M | $15M | $15M | $15M | $15M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PDS stock.
Precision Drilling Corporation's current P/E ratio is 864.2x. The historical average is 38.3x. This places it at the 100th percentile of its historical range.
Precision Drilling Corporation's current EV/EBITDA is 5.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Precision Drilling Corporation's return on equity (ROE) is 0.1%. The historical average is 8.9%.
Based on historical data, Precision Drilling Corporation is trading at a P/E of 864.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Precision Drilling Corporation has 82.8% gross margin and 5.7% operating margin.
Precision Drilling Corporation's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Persistent margin compression and negative revenue growth
Gross-to-Net Margin Gap Persists
Despite a robust 81.7% gross margin in 2026Q2, net margin remained negative at -0.3%, as depreciation and interest consumed nearly all gross profit, per reported financials.
The persistent gap between gross and net margins—averaging over 80 percentage points—indicates that non-operating charges and fixed costs are absorbing the majority of revenue. The 3.2% operating margin in 2026Q2, down from 12.6% a year earlier, suggests limited pricing power or elevated overhead. This trend implies that the company's high-spec fleet and Alpha technology have not yet translated into sustainable bottom-line profitability.
ROIC Stalls Near Zero
ROIC has hovered between -0.9% and 3.7% over the past ten quarters, with 2026Q2 at 0.5%, indicating that returns on invested capital remain well below the cost of capital, based on reported figures.
The consistently low ROIC, despite a large asset base, suggests that the company is not generating sufficient operating income to justify its capital employed. The slight improvement in 2025Q3 to 3.7% was not sustained, and the latest quarter's 0.5% reflects the ongoing margin compression. This implies that the heavy investment in fleet modernization and Alpha technology has yet to yield adequate returns, and investors should monitor whether international contract wins can improve capital efficiency.
Working Capital Leverage Drives Cash Flow
The cash conversion cycle turned sharply negative at -183 days in 2026Q2, driven by a 319-day payables period, indicating that PDS is effectively financing operations through supplier credit, per financial statements.
The negative CCC, which has persisted in most quarters, reflects a deliberate strategy of stretching payables while collecting receivables relatively quickly (DSO of 76 days). This provides a significant source of working capital financing, but it may also signal strained supplier relationships or a reliance on extended payment terms. The 319-day DPO is unusually high and warrants monitoring for sustainability, as it may not be replicable if suppliers tighten credit conditions.
Debt Reduction Improves Coverage
Debt-to-equity improved from 0.62 in 2024Q1 to 0.43 by 2026Q2, while interest coverage rose to 1.26x, though still thin, according to recent SEC filings.
The company has deleveraged significantly, reducing total debt to $697M, which has eased the balance sheet strain. However, interest coverage of 1.26x in 2026Q2 remains precarious, as operating income barely covers interest expense. The improvement from negative coverage in 2025Q4 is positive, but the thin margin suggests that any further decline in utilization or dayrates could pressure debt service. The D/EBITDA ratio of 7.18x in 2026Q2, though down from 12.55x, remains elevated relative to peers, indicating that leverage is still a key risk.
Liquidity Buffer Strengthens but Remains Modest
The current ratio improved to 1.46 in 2026Q2 from 0.91 in 2025Q1, with cash at $66.3M, though this remains thin relative to quarterly operating costs, per balance sheet data.
The improvement in liquidity is encouraging, but the absolute cash balance is modest for a company with quarterly revenue exceeding $400M. The quick ratio of 1.29 indicates that inventory is not a major liquidity concern, but the reliance on a negative cash conversion cycle means that any disruption in payables could quickly strain liquidity. Under a severe downturn, the current ratio could deteriorate rapidly, as seen in 2025Q1 when it fell below 1.0.
EV/EBITDA Misleads in Cyclical Downturn
The trailing EV/EBITDA of 5.40 appears cheap, but with EBITDA near cyclical lows, this multiple may overstate value; forward EV/EBITDA of 2.53 implies a sharp recovery, which is uncertain.
The most commonly misapplied ratio for PDS is EV/EBITDA, because EBITDA is highly cyclical and currently depressed. The trailing multiple of 5.40 looks attractive, but it is based on trough earnings, which can be misleading. The forward multiple of 2.53 assumes a significant rebound in EBITDA, which may not materialize if the negative revenue growth persists. Investors should instead focus on EV/EBITDA relative to the mid-cycle earnings power, or use EV/IC and ROIC to assess whether the company is creating value, as the current ROIC of 0.5% suggests it is not.