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DRILLING TOOLS INTERNATIONAL (DTI) Stock Fundamental Analysis

NASDAQ:DTI - Nasdaq - US26205E1073 - Common Stock - Currency: USD

3.02  -0.17 (-5.33%)

After market: 3.1 +0.08 (+2.65%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DTI. DTI was compared to 59 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of DTI have multiple concerns. DTI has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

DTI had positive earnings in the past year.
DTI had a positive operating cash flow in the past year.
DTI Yearly Net Income VS EBIT VS OCF VS FCFDTI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 0 10M -10M 20M -20M

1.2 Ratios

DTI has a Return On Assets (3.74%) which is in line with its industry peers.
DTI has a Return On Equity of 6.64%. This is comparable to the rest of the industry: DTI outperforms 50.00% of its industry peers.
The Return On Invested Capital of DTI (5.96%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 3.74%
ROE 6.64%
ROIC 5.96%
ROA(3y)3.75%
ROA(5y)N/A
ROE(3y)5.55%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
DTI Yearly ROA, ROE, ROICDTI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 0 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 5.46%, DTI is in line with its industry, outperforming 51.72% of the companies in the same industry.
DTI's Operating Margin of 10.75% is fine compared to the rest of the industry. DTI outperforms 60.34% of its industry peers.
The Gross Margin of DTI (75.69%) is better than 100.00% of its industry peers.
Industry RankSector Rank
OM 10.75%
PM (TTM) 5.46%
GM 75.69%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
DTI Yearly Profit, Operating, Gross MarginsDTI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 20 40 60

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DTI is destroying value.
Compared to 1 year ago, DTI has more shares outstanding
There is no outstanding debt for DTI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
DTI Yearly Shares OutstandingDTI Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 5M 10M 15M 20M 25M
DTI Yearly Total Debt VS Total AssetsDTI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 50M 100M 150M 200M

2.2 Solvency

Based on the Altman-Z score of 1.68, we must say that DTI is in the distress zone and has some risk of bankruptcy.
DTI's Altman-Z score of 1.68 is in line compared to the rest of the industry. DTI outperforms 41.38% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that DTI is not too dependend on debt financing.
DTI's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. DTI outperforms 56.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF N/A
Altman-Z 1.68
ROIC/WACC0.6
WACC9.96%
DTI Yearly LT Debt VS Equity VS FCFDTI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.32 indicates that DTI should not have too much problems paying its short term obligations.
The Current ratio of DTI (1.32) is worse than 79.31% of its industry peers.
DTI has a Quick Ratio of 1.32. This is a bad value and indicates that DTI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.99, DTI is doing worse than 77.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.99
DTI Yearly Current Assets VS Current LiabilitesDTI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 10M 20M 30M 40M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.59% over the past year.
DTI shows a strong growth in Revenue. In the last year, the Revenue has grown by 96.97%.
EPS 1Y (TTM)32.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-81.89%
Revenue 1Y (TTM)96.97%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.13%

3.2 Future

The Earnings Per Share is expected to grow by 4.59% on average over the next years.
Based on estimates for the next years, DTI will show a small growth in Revenue. The Revenue will grow by 7.40% on average per year.
EPS Next Y-81.97%
EPS Next 2Y-28.31%
EPS Next 3Y-8.98%
EPS Next 5Y4.59%
Revenue Next Year-1.01%
Revenue Next 2Y4.6%
Revenue Next 3Y5.79%
Revenue Next 5Y7.4%

3.3 Evolution

DTI Yearly Revenue VS EstimatesDTI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
DTI Yearly EPS VS EstimatesDTI Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.19 indicates a reasonable valuation of DTI.
Based on the Price/Earnings ratio, DTI is valued a bit cheaper than 77.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of DTI to the average of the S&P500 Index (29.63), we can say DTI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.54, the valuation of DTI can be described as reasonable.
DTI's Price/Forward Earnings ratio is rather cheap when compared to the industry. DTI is cheaper than 86.21% of the companies in the same industry.
DTI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 11.19
Fwd PE 9.54
DTI Price Earnings VS Forward Price EarningsDTI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DTI is valued cheaper than 96.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.06
DTI Per share dataDTI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

DTI's earnings are expected to decrease with -8.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.31%
EPS Next 3Y-8.98%

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0

5. Dividend

5.1 Amount

No dividends for DTI!.
Industry RankSector Rank
Dividend Yield N/A

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DRILLING TOOLS INTERNATIONAL

NASDAQ:DTI (2/21/2025, 8:14:35 PM)

After market: 3.1 +0.08 (+2.65%)

3.02

-0.17 (-5.33%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-13 2024-11-13/amc
Earnings (Next)03-14 2025-03-14/bmo
Inst Owners9.82%
Inst Owner Change-89.63%
Ins Owners6.41%
Ins Owner Change0%
Market Cap107.48M
Analysts76.67
Price Target6.12 (102.65%)
Short Float %2.62%
Short Ratio7.58
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
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)-75.78%
Min EPS beat(2)-91.16%
Max EPS beat(2)-60.4%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.93%
Min Revenue beat(2)-12.32%
Max Revenue beat(2)-5.54%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-68.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.5%
Valuation
Industry RankSector Rank
PE 11.19
Fwd PE 9.54
P/S 0.72
P/FCF N/A
P/OCF 6.9
P/B 0.87
P/tB 1.32
EV/EBITDA 3.06
EPS(TTM)0.27
EY8.94%
EPS(NY)0.32
Fwd EY10.48%
FCF(TTM)-0.31
FCFYN/A
OCF(TTM)0.44
OCFY14.49%
SpS4.21
BVpS3.46
TBVpS2.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.74%
ROE 6.64%
ROCE 9.65%
ROIC 5.96%
ROICexc 6.37%
ROICexgc 8.35%
OM 10.75%
PM (TTM) 5.46%
GM 75.69%
FCFM N/A
ROA(3y)3.75%
ROA(5y)N/A
ROE(3y)5.55%
ROE(5y)N/A
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 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF N/A
Debt/EBITDA 1.01
Cap/Depr 118.2%
Cap/Sales 17.79%
Interest Coverage 9.14
Cash Conversion 40.3%
Profit Quality N/A
Current Ratio 1.32
Quick Ratio 0.99
Altman-Z 1.68
F-Score4
WACC9.96%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-81.89%
EPS Next Y-81.97%
EPS Next 2Y-28.31%
EPS Next 3Y-8.98%
EPS Next 5Y4.59%
Revenue 1Y (TTM)96.97%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.13%
Revenue Next Year-1.01%
Revenue Next 2Y4.6%
Revenue Next 3Y5.79%
Revenue Next 5Y7.4%
EBIT growth 1Y41.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year26.93%
EBIT Next 3Y21.1%
EBIT Next 5Y20.93%
FCF growth 1Y-1122.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1497.25%
OCF growth 3YN/A
OCF growth 5YN/A