Taking everything into account, DRQ scores 4 out of 10 in our fundamental rating. DRQ was compared to 61 industry peers in the Energy Equipment & Services industry. DRQ has a great financial health rating, but its profitability evaluates not so good. DRQ is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DRQ has reported negative net income.
In the past year DRQ had a positive cash flow from operations.
In multiple years DRQ reported negative net income over the last 5 years.
In multiple years DRQ reported negative operating cash flow during the last 5 years.

1.2 Ratios

DRQ has a Return On Assets of -2.68%. This is in the lower half of the industry: DRQ underperforms 74.19% of its industry peers.
DRQ has a worse Return On Equity (-3.17%) than 70.97% of its industry peers.
The Return On Invested Capital of DRQ (0.68%) is worse than 79.03% of its industry peers.

		Industry Rank	Sector Rank
ROA	-2.68%
ROE	-3.17%
ROIC	0.68%

ROA(3y)-4.28%

ROA(5y)-3.07%

ROE(3y)-4.81%

ROE(5y)-3.45%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

DRQ has a Operating Margin of 1.61%. This is in the lower half of the industry: DRQ underperforms 75.81% of its industry peers.
The Gross Margin of DRQ (28.53%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DRQ has declined.

		Industry Rank	Sector Rank
OM	1.61%
PM (TTM)	N/A
GM	28.53%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.44%

GM growth 5Y-1.51%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRQ is destroying value.
DRQ has more shares outstanding than it did 1 year ago.
DRQ has a worse debt/assets ratio than last year.

2.2 Solvency

DRQ has an Altman-Z score of 4.52. This indicates that DRQ is financially healthy and has little risk of bankruptcy at the moment.
DRQ's Altman-Z score of 4.52 is amongst the best of the industry. DRQ outperforms 91.94% of its industry peers.
DRQ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	4.52

ROIC/WACC0.08

WACC8.32%

2.3 Liquidity

DRQ has a Current Ratio of 5.60. This indicates that DRQ is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DRQ (5.60) is better than 95.16% of its industry peers.
DRQ has a Quick Ratio of 3.98. This indicates that DRQ is financially healthy and has no problem in meeting its short term obligations.
DRQ has a better Quick ratio (3.98) than 95.16% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	5.6
Quick Ratio	3.98

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

DRQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1000.00%.
Looking at the last year, DRQ shows a very strong growth in Revenue. The Revenue has grown by 29.77%.
The Revenue has been growing slightly by 1.97% on average over the past years.

EPS 1Y (TTM)-1000%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%433.33%

Revenue 1Y (TTM)29.77%

Revenue growth 3Y5.13%

Revenue growth 5Y1.97%

Sales Q2Q%34.3%

3.2 Future

Based on estimates for the next years, DRQ will show a very strong growth in Earnings Per Share. The EPS will grow by 67.14% on average per year.
Based on estimates for the next years, DRQ will show a quite strong growth in Revenue. The Revenue will grow by 12.73% on average per year.

EPS Next Y187.53%

EPS Next 2Y168.04%

EPS Next 3Y111.1%

EPS Next 5Y67.14%

Revenue Next Year20.38%

Revenue Next 2Y13.37%

Revenue Next 3Y10.52%

Revenue Next 5Y12.73%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

DRQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 19.81, the valuation of DRQ can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DRQ is valued a bit more expensive than 79.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.72. DRQ is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	19.81

4.2 Price Multiples

DRQ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DRQ is more expensive than 66.13% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRQ indicates a slightly more expensive valuation: DRQ is more expensive than 61.29% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	66.12
EV/EBITDA	8.54

4.3 Compensation for Growth

DRQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DRQ's earnings are expected to grow with 111.09% in the coming years.