Precision DrillingPDS +0.57%73 3-Year ROIIC % is 43.33 as of Dec. 2025, which is 6% above its 10-year median of 40.72. GuruFocus rates PDS with a GF Score™ of 73/100 and a GF Value™ of $67.07 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 925 Oil & Gas companies, Precision Drilling ranks better than 84% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Precision Drilling's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 43.33%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Precision Drilling's 3-Year ROIIC % or its related term are showing as below:
PDS's 3-Year ROIIC % is ranked better than 84% of 925
companies
in the Oil & Gas industry
Industry Median: 0.01
vs PDS: 43.33
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Precision Drilling 3-Year ROIIC % Related Terms
Precision Drilling 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Precision Drilling's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Precision Drilling's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Precision Drilling's 3-Year ROIIC % falls into.
Precision Drilling's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 4.1943391 (Dec. 2025) - 23.975 (Dec. 2022) )
/
( 1729.166 (Dec. 2025) - 1801.395 (Dec. 2022) )
=
-19.7806609
/
-72.229
=
27.39%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Precision Drilling (PDS) has a 3-Year ROIIC % of 43.33 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Precision Drilling and its competitors. This is near median its historical median of 40.72. According to the industry distribution chart, Precision Drilling ranks #148 out of 925 companies in the Oil & Gas industry, placing it in the top 16%.
Is Precision Drilling's 3-Year ROIIC % too high?
Precision Drilling's current 3-Year ROIIC % of 43.33 is near median its 10-year median of 40.72. The Oil & Gas industry median 3-Year ROIIC % is 0.01. Precision Drilling's value of 43.33 is 433200% above this industry median. Based on the distribution chart, Precision Drilling ranks #148 out of 925 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. 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 3-Year ROIIC % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Precision Drilling ranks #148 out of 925 companies for 3-Year ROIIC %. This places Precision Drilling in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 0.01. Precision Drilling's value of 43.33 is 433200% above this benchmark. While the company's 10-year median is 40.72 vs. the industry median of 0.01, Precision Drilling has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Oil & Gas company?
The median 3-Year ROIIC % among Oil & Gas companies is 0.01, based on 925 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precision Drilling's current 3-Year ROIIC % of 43.33 is 433200% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Precision Drilling and its competitors. For the Oil & Gas industry, the median 3-Year ROIIC % is 0.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Drilling's current 3-Year ROIIC % is 43.33, which is near median its own 10-year median of 40.72. 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 $67.07, compared to a current price of $75.69 — trading 12.9% above its estimated fair value. The current 3-Year ROIIC % is 43.33, which is near median its 10-year median of 40.72 and 433200% above the Oil & Gas industry median of 0.01. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Precision Drilling (PDS), the current 3-Year ROIIC % is 43.33 as of Dec. 2025. 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 $75.69 is trading 12.9% above its estimated GF Value™ of $67.07.
GuruFocus considers Precision Drilling to be Modestly Overvalued.
Key valuation signals for PDS:
3-Year ROIIC %: 43.33 (near median its 10-year median of 40.72)
GF Value™: $67.07 vs. price of $75.69 (12.9% above fair value)
Industry Position: 433200% above the Oil & Gas median (#148 of 925)
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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