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DRIL-QUIP INC (DRQ) Stock Fundamental Analysis

NYSE:DRQ - New York Stock Exchange, Inc. - US2620371045 - Common Stock - Currency: USD

15.41  -0.56 (-3.51%)

After market: 15.41 0 (0%)

Fundamental Rating

4

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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

DRQ had negative earnings in the past year.
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.
In multiple years DRQ reported negative operating cash flow during the last 5 years.
DRQ Yearly Net Income VS EBIT VS OCF VS FCFDRQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

1.2 Ratios

The Return On Assets of DRQ (-2.68%) is worse than 74.19% of its industry peers.
DRQ has a Return On Equity of -3.17%. This is in the lower half of the industry: DRQ underperforms 70.97% of its industry peers.
DRQ has a worse Return On Invested Capital (0.68%) than 79.03% of its industry peers.
Industry RankSector 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
DRQ Yearly ROA, ROE, ROICDRQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

1.3 Margins

The Operating Margin of DRQ (1.61%) is worse than 75.81% of its industry peers.
DRQ has a Gross Margin of 28.53%. This is comparable to the rest of the industry: DRQ outperforms 58.06% of its industry peers.
In the last couple of years the Gross Margin of DRQ has declined.
Industry RankSector 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%
DRQ Yearly Profit, Operating, Gross MarginsDRQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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8

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.
DRQ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DRQ has a worse debt to assets ratio.
DRQ Yearly Shares OutstandingDRQ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
DRQ Yearly Total Debt VS Total AssetsDRQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.52
ROIC/WACC0.08
WACC8.32%
DRQ Yearly LT Debt VS Equity VS FCFDRQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

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.
Looking at the Current ratio, with a value of 5.60, DRQ belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
A Quick Ratio of 3.98 indicates that DRQ has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.98, DRQ belongs to the best of the industry, outperforming 95.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.6
Quick Ratio 3.98
DRQ Yearly Current Assets VS Current LiabilitesDRQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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5

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

The Earnings Per Share is expected to grow by 67.14% on average over the next years. This is a very strong growth
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

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.
DRQ Yearly Revenue VS EstimatesDRQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M
DRQ Yearly EPS VS EstimatesDRQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4

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2

4. Valuation

4.1 Price/Earnings Ratio

DRQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 19.81 indicates a rather expensive valuation of DRQ.
DRQ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DRQ is more expensive than 79.03% of the companies in the same industry.
DRQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 19.81
DRQ Price Earnings VS Forward Price EarningsDRQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 -20

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.
DRQ's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DRQ is more expensive than 61.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 66.12
EV/EBITDA 8.54
DRQ Per share dataDRQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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%

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0

5. Dividend

5.1 Amount

DRQ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DRIL-QUIP INC

NYSE:DRQ (9/6/2024, 8:08:58 PM)

After market: 15.41 0 (0%)

15.41

-0.56 (-3.51%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)08-01 2024-08-01/amc
Earnings (Next)10-24 2024-10-24/amc
Inst Owners1.09%
Inst Owner Change0%
Ins Owners1.82%
Ins Owner Change0%
Market Cap530.87M
Analysts48
Price Target28.9 (87.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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
ROICexcg growth 3YN/A
ROICexcg 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 RankSector 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%