We assign a fundamental rating of 4 out of 10 to DRQ. DRQ was compared to 61 industry peers in the Energy Equipment & Services industry. While DRQ has a great health rating, there are worries on its profitability. DRQ is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

DRQ had negative earnings in the past year.
In the past year DRQ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DRQ reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: DRQ reported negative operating cash flow in multiple years.

1.2 Ratios

DRQ's Return On Assets of -2.68% is on the low side compared to the rest of the industry. DRQ is outperformed by 74.19% of its industry peers.
Looking at the Return On Equity, with a value of -3.17%, DRQ is doing worse than 70.97% of the companies in the same industry.
DRQ's Return On Invested Capital of 0.68% is on the low side compared to the rest of the industry. DRQ is outperformed by 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

Looking at the Operating Margin, with a value of 1.61%, DRQ is doing worse than 75.81% of the companies in the same industry.
Looking at the Gross Margin, with a value of 28.53%, DRQ is in line with its industry, outperforming 58.06% of the companies in the same industry.
DRQ's Gross Margin has declined in the last couple of years.

		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

DRQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DRQ has more shares outstanding than it did 1 year ago.
The debt/assets ratio for DRQ is higher compared to a year ago.

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.
With an excellent Altman-Z score value of 4.52, DRQ belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
There is no outstanding debt for DRQ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
DRQ has a Current ratio of 5.60. This is amongst the best in the industry. DRQ outperforms 95.16% of its industry peers.
A Quick Ratio of 3.98 indicates that DRQ has no problem at all paying its short term obligations.
DRQ's Quick ratio of 3.98 is amongst the best of the industry. DRQ outperforms 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%.
The Revenue has grown by 29.77% in the past year. This is a very strong growth!
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

DRQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 67.14% yearly.
DRQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.73% yearly.

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

The Price/Earnings Ratio is negative for DRQ. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 19.81 indicates a rather expensive valuation of DRQ.
Based on the Price/Forward Earnings ratio, DRQ is valued a bit more expensive than the industry average as 79.03% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, DRQ is valued a bit cheaper.

		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

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