The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Precision Drilling Pretax Margin % Related Terms
Precision Drilling Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Precision Drilling's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Drilling subindustry, Precision Drilling's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Precision Drilling Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Precision Drilling's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Precision Drilling's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Precision Drilling (PDS) has a Pretax Margin % of 5.14% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Precision Drilling and its competitors. According to the industry distribution chart, Precision Drilling ranks #566 out of 916 companies in the Oil & Gas industry, placing it in the top 61.8%.
Is Precision Drilling's Pretax Margin % too high?
Precision Drilling's current Pretax Margin % is 5.14%. The Oil & Gas industry median Pretax Margin % is 5.17. Precision Drilling's value of 5.14% is 0.5% below this industry median. Based on the distribution chart, Precision Drilling ranks #566 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Precision Drilling has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Drilling's Pretax Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Precision Drilling ranks #566 out of 916 companies for Pretax Margin %. This places Precision Drilling in the lower half of its industry. The industry median Pretax Margin % is 5.17. Precision Drilling's value of 5.14% is 0.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Oil & Gas company?
The median Pretax Margin % among Oil & Gas companies is 5.17, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precision Drilling's current Pretax Margin % of 5.14% is 0.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Precision Drilling and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Drilling's current Pretax Margin % is 5.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Drilling stock overvalued right now?
Based on GuruFocus' analysis, Precision Drilling (PDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $65.64, compared to a current price of $77.56 — trading 18.2% above its estimated fair value. The current Pretax Margin % is 5.14% and 0.5% below the Oil & Gas industry median of 5.17. Precision Drilling's overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Precision Drilling (PDS), the current Pretax Margin % is 5.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Precision Drilling (PDS) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Drilling stock appears to be overvalued.
The current stock price of $77.56 is trading 18.2% above its estimated GF Value™ of $65.64.
GuruFocus considers Precision Drilling to be Modestly Overvalued.
Key valuation signals for PDS:
Pretax Margin %: 5.14%
GF Value™: $65.64 vs. price of $77.56 (18.2% above fair value)
Industry Position: 0.5% below the Oil & Gas median (#566 of 916)
No single metric tells the full story. See the PDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Drilling Corp is a provider of contract drilling, completion, and production services to oil and natural gas exploration and production companies in Canada, the United States, and certain international locations. The company operates through two industry segments: Contract Drilling Services, which generates maximum revenue and includes drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale, and repair of drilling equipment; and Completion and Production Services, which includes service rigs, oilfield equipment rental, and camp services. The company generates the majority of its revenue from the United States.
70GF Score
Get the complete analysis for PDS
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PDS has been successfully added to your 
