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%)
DRQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 60 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. While showing a medium growth rate, DRQ is valued expensive at the moment.
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.
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 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.
With a Return On Equity value of -3.17%, DRQ is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.68%, DRQ is not doing good in the industry: 79.03% of the companies in the same industry are doing better.
| 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
With a Operating Margin value of 1.61%, DRQ is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRQ is destroying value.
The number of shares outstanding for DRQ has been increased compared to 1 year ago.
Compared to 5 years ago, DRQ has less shares outstanding
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.
DRQ has a better Altman-Z score (4.52) than 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.
DRQ's Current ratio of 5.60 is amongst the best of the industry. DRQ outperforms 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.
Looking at the Quick ratio, with a value of 3.98, DRQ belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.6 | ||
| Quick Ratio | 3.98 |
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%.
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
The Earnings Per Share is expected to grow by 67.14% on average over the next years. This is a very strong growth
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DRQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 19.81, DRQ is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DRQ is valued a bit more expensive than 79.03% of the companies in the same industry.
DRQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
66.13% of the companies in the same industry are cheaper than DRQ, based on the Enterprise Value to EBITDA ratio.
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.
DRQ's earnings are expected to grow with 111.09% in the coming years. This may justify a more expensive valuation.
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.
Can you provide the valuation status for DRIL-QUIP INC?
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 financial health of DRIL-QUIP INC (DRQ) stock?
The financial health rating of DRIL-QUIP INC (DRQ) is 8 / 10.
What is the expected EPS growth for DRIL-QUIP INC (DRQ) stock?
The Earnings per Share (EPS) of DRIL-QUIP INC (DRQ) is expected to grow by 187.53% in the next year.