Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Precision Drilling's annualizedNet Income for the quarter that ended in Mar. 2026 was $51 Mil. Precision Drilling's average total tangible assets for the quarter that ended in Mar. 2026 was $1,983 Mil. Therefore, Precision Drilling's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.55%.
The historical rank and industry rank for Precision Drilling's Return-on-Tangible-Asset or its related term are showing as below:
PDS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -8.11 Med: -2.33 Max: 9.87
Current: -0.55
During the past 13 years, Precision Drilling's highest Return-on-Tangible-Asset was 9.87%. The lowest was -8.11%. And the median was -2.33%.
PDS's Return-on-Tangible-Asset is ranked worse than 62.44% of 1025
companies
in the Oil & Gas industry
Industry Median: 1.99
vs PDS: -0.55
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Precision Drilling Return-on-Tangible-Asset Related Terms
Precision Drilling Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Precision Drilling's Return-on-Tangible-Asset 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.
PDS vs NE, RIG, VAL: Return-on-Tangible-Asset Comparison
For the Oil & Gas Drilling subindustry, Precision Drilling's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Precision Drilling's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Precision Drilling's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.55% mean?
Precision Drilling (PDS) has a Return-on-Tangible-Asset of 2.55% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Precision Drilling and its competitors. According to the industry distribution chart, Precision Drilling ranks #640 out of 1025 companies in the Oil & Gas industry, placing it in the top 62.4%.
Is Precision Drilling's Return-on-Tangible-Asset too high?
Precision Drilling's current Return-on-Tangible-Asset is 2.55%. The Oil & Gas industry median Return-on-Tangible-Asset is 1.99. Precision Drilling's value of 2.55% is 28.1% above this industry median. Based on the distribution chart, Precision Drilling ranks #640 out of 1025 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Precision Drilling has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Drilling's Return-on-Tangible-Asset compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Precision Drilling ranks #640 out of 1025 companies for Return-on-Tangible-Asset. This places Precision Drilling in the lower half of its industry. The industry median Return-on-Tangible-Asset is 1.99. Precision Drilling's value of 2.55% is 28.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Oil & Gas company?
The median Return-on-Tangible-Asset among Oil & Gas companies is 1.99, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precision Drilling's current Return-on-Tangible-Asset of 2.55% is 28.1% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Precision Drilling and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Asset is 1.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Drilling's current Return-on-Tangible-Asset is 2.55%. 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 $66.50, compared to a current price of $80.62 — trading 21.2% above its estimated fair value. The current Return-on-Tangible-Asset is 2.55% and 28.1% above the Oil & Gas industry median of 1.99. Precision Drilling's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Precision Drilling (PDS), the current Return-on-Tangible-Asset is 2.55% 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 $80.62 is trading 21.2% above its estimated GF Value™ of $66.50.
GuruFocus considers Precision Drilling to be Modestly Overvalued.
Key valuation signals for PDS:
Return-on-Tangible-Asset: 2.55%
GF Value™: $66.50 vs. price of $80.62 (21.2% above fair value)
Industry Position: 28.1% above the Oil & Gas median (#640 of 1025)
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.
73GF Score
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