Where Precision Drilling stands after its latest Filing
Revenue for the twelve months was $1.32bn, down 5.0% on a year earlier, a steeper fall than the 3.3% decline a quarter earlier. Free-cash-flow margin rose to 8.1% from 6.4% a year earlier. Operating margin widened to 31.5% from 6.1%. The diluted share count is down 6.3% on a year earlier, which lifts each remaining share. Against its peers on growth, profitability, cash generation and balance sheet, it grades B. It passes 3 of our 5 financial-health checks. Our cash-flow model value is $220 a share, against a share price of $106. At that price, our model says the market is pricing in cash flow shrinking about 8.2% a year for five years, slower than the 13.6% a year revenue growth it has delivered.