DRIL-QUIP INC (DRQ) Stock Fundamental Analysis
USA - 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 60 industry peers in the Energy Equipment & Services industry. While DRQ has a great health rating, there are worries on its profitability. DRQ is quite expensive at the moment. 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.
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.
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.
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 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
DRQ's Operating Margin of 1.61% is on the low side compared to the rest of the industry. DRQ is outperformed by 75.81% of its industry peers.
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%
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.
The number of shares outstanding for DRQ has been increased compared to 1 year ago.
The number of shares outstanding for DRQ has been reduced compared to 5 years ago.
Compared to 1 year ago, DRQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.52 indicates that DRQ is not in any danger for 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.
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
A Current Ratio of 5.60 indicates that DRQ has no problem at all paying 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 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 |
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%.
DRQ shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.77%.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for DRQ. In the last year negative earnings were reported.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.63. DRQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRQ is valued a bit more expensive than the industry average as 66.13% of the companies are valued more cheaply.
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)-26986000
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.