DRIL-QUIP INC (DRQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DRQ - US2620371045 - Common Stock
15.41 USD
-0.56 (-3.51%)
15.41 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DRQ. DRQ was compared to 62 industry peers in the Energy Equipment & Services industry. No worries on liquidiy or solvency for DRQ as it has an excellent financial health rating, but there are worries on the profitability. DRQ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DRQ has reported negative net income.
DRQ had a positive operating cash flow in the past year.
In multiple years DRQ reported negative net income over the last 5 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.
DRQ's Return On Equity of -3.17% is on the low side compared to the rest of the industry. DRQ is outperformed by 70.97% of its industry peers.
DRQ has a Return On Invested Capital of 0.68%. This is in the lower half of the industry: DRQ underperforms 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.
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRQ is destroying value.
The number of shares outstanding for DRQ has been increased compared to 1 year ago.
Compared to 1 year ago, DRQ has a worse debt to assets ratio.
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 has a Altman-Z score of 4.52. This is amongst the best in the industry. DRQ outperforms 91.94% of its industry peers.
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's Current ratio of 5.60 is amongst the best of 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.
The Quick ratio of DRQ (3.98) is better than 95.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.6 | ||
| Quick Ratio | 3.98 |
3. Growth
3.1 Past
The earnings per share for DRQ have decreased strongly by -1000.00% in the last year.
The Revenue has grown by 29.77% in the past year. This is a very strong growth!
DRQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.97% yearly.
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.
The Revenue is expected to grow by 12.73% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
DRQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 19.81, which indicates a rather expensive current valuation of DRQ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRQ indicates a slightly more expensive valuation: DRQ is more expensive than 79.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, DRQ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRQ indicates a slightly more expensive valuation: DRQ is more expensive than 66.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DRQ is valued a bit more expensive than the industry average as 61.29% of the companies are valued more cheaply.
| 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.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y168.04%
EPS Next 3Y111.1%
5. Dividend
5.1 Amount
DRQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.41
-0.56 (-3.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners1.09%
Inst Owner Change0%
Ins Owners1.82%
Ins Owner Change0%
Market Cap530.87M
Revenue(TTM)474.23M
Net Income(TTM)-26.99M
Analysts48
Price Target28.9 (87.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-422.36%
Min EPS beat(2)-789.73%
Max EPS beat(2)-55%
EPS beat(4)0
Avg EPS beat(4)-291.04%
Min EPS beat(4)-789.73%
Max EPS beat(4)-55%
EPS beat(8)2
Avg EPS beat(8)-105.49%
EPS beat(12)2
Avg EPS beat(12)-107.98%
EPS beat(16)3
Avg EPS beat(16)-567.86%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)3.02%
Revenue beat(4)3
Avg Revenue beat(4)2.74%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)5.56%
Revenue beat(8)4
Avg Revenue beat(8)0.17%
Revenue beat(12)5
Avg Revenue beat(12)-0.6%
Revenue beat(16)6
Avg Revenue beat(16)-1.34%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.77%
EPS NY rev (1m)-70.45%
EPS NY rev (3m)-70.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.81 | ||
| P/S | 1.12 | ||
| P/FCF | 66.12 | ||
| P/OCF | 14.76 | ||
| P/B | 0.62 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)-0.63
EYN/A
EPS(NY)0.78
Fwd EY5.05%
FCF(TTM)0.23
FCFY1.51%
OCF(TTM)1.04
OCFY6.77%
SpS13.77
BVpS24.75
TBVpS23.15
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -3.17% | ||
| ROCE | 0.86% | ||
| ROIC | 0.68% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 0.94% | ||
| OM | 1.61% | ||
| PM (TTM) | N/A | ||
| GM | 28.53% | ||
| FCFM | 1.69% |
ROA(3y)-4.28%
ROA(5y)-3.07%
ROE(3y)-4.81%
ROE(5y)-3.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 85.08% | ||
| Cap/Sales | 5.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.6 | ||
| Quick Ratio | 3.98 | ||
| Altman-Z | 4.52 |
F-Score5
WACC8.32%
ROIC/WACC0.08
Cap/Depr(3y)68.2%
Cap/Depr(5y)55.03%
Cap/Sales(3y)5.33%
Cap/Sales(5y)4.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%433.33%
EPS Next Y187.53%
EPS Next 2Y168.04%
EPS Next 3Y111.1%
EPS Next 5Y67.14%
Revenue 1Y (TTM)29.77%
Revenue growth 3Y5.13%
Revenue growth 5Y1.97%
Sales Q2Q%34.3%
Revenue Next Year20.38%
Revenue Next 2Y13.37%
Revenue Next 3Y10.52%
Revenue Next 5Y12.73%
EBIT growth 1Y247.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year823.58%
EBIT Next 3Y135.99%
EBIT Next 5Y81%
FCF growth 1Y157.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y680.33%
OCF growth 3YN/A
OCF growth 5Y-29.85%
DRIL-QUIP INC / DRQ FAQ
What is the ChartMill fundamental rating of DRIL-QUIP INC (DRQ) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DRQ.
What is the valuation status of DRIL-QUIP INC (DRQ) stock?
ChartMill assigns a valuation rating of 2 / 10 to DRIL-QUIP INC (DRQ). This can be considered as Overvalued.
Can you provide the profitability details for DRIL-QUIP INC?
DRIL-QUIP INC (DRQ) has a profitability rating of 1 / 10.
What is the earnings growth outlook for DRIL-QUIP INC?
The Earnings per Share (EPS) of DRIL-QUIP INC (DRQ) is expected to grow by 187.53% in the next year.