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. 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.

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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.
DRQ had a positive operating cash flow in the past year.
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.
The Return On Equity of DRQ (-3.17%) is worse than 70.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.68%, DRQ is doing worse than 79.03% of the companies in the same industry.

		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.
DRQ has a Gross Margin (28.53%) which 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRQ 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

An Altman-Z score of 4.52 indicates that DRQ is not in any danger for bankruptcy at the moment.
DRQ has a better Altman-Z score (4.52) than 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

A Current Ratio of 5.60 indicates that DRQ has no problem at all paying 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.
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

The earnings per share for DRQ have decreased strongly by -1000.00% in the last year.
DRQ shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.77%.
Measured over the past years, DRQ shows a small growth in Revenue. The Revenue has been growing by 1.97% on average per year.

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.
DRQ is valuated rather expensively with a Price/Forward Earnings ratio of 19.81.
79.03% of the companies in the same industry are cheaper than DRQ, based on the Price/Forward Earnings ratio.
DRQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.

		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.
61.29% of the companies in the same industry are cheaper than DRQ, based on the Price/Free Cash Flow ratio.

		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.
A more expensive valuation may be justified as DRQ's earnings are expected to grow with 111.09% in the coming years.