AKITA DRILLING LTD-CL A (AKT-A.CA) Stock Fundamental Analysis
TSX:AKT-A - Toronto Stock Exchange - CA0099051009 - Common Stock - Currency: CAD
Taking everything into account, AKT-A scores 4 out of 10 in our fundamental rating. AKT-A was compared to 29 industry peers in the Energy Equipment & Services industry. While AKT-A seems to be doing ok healthwise, there are quite some concerns on its profitability. AKT-A may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year AKT-A was profitable.
AKT-A had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AKT-A reported negative net income in multiple years.
Of the past 5 years AKT-A 4 years had a positive operating cash flow.
1.2 Ratios
AKT-A has a better Return On Assets (6.85%) than 68.97% of its industry peers.
The Return On Equity of AKT-A (10.47%) is comparable to the rest of the industry.
AKT-A has a worse Return On Invested Capital (3.39%) than 72.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AKT-A is significantly below the industry average of 10.36%.
The last Return On Invested Capital (3.39%) for AKT-A is above the 3 year average (2.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 10.47% | ||
| ROIC | 3.39% |
ROA(3y)4.46%
ROA(5y)-6.44%
ROE(3y)7.47%
ROE(5y)-10.96%
ROIC(3y)2.35%
ROIC(5y)N/A
1.3 Margins
AKT-A's Profit Margin of 8.90% is fine compared to the rest of the industry. AKT-A outperforms 75.86% of its industry peers.
The Operating Margin of AKT-A (5.39%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.39% | ||
| PM (TTM) | 8.9% | ||
| GM | N/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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AKT-A is destroying value.
The number of shares outstanding for AKT-A remains at a similar level compared to 1 year ago.
AKT-A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AKT-A has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that AKT-A is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.70, AKT-A is in line with its industry, outperforming 55.17% of the companies in the same industry.
The Debt to FCF ratio of AKT-A is 44.57, which is on the high side as it means it would take AKT-A, 44.57 years of fcf income to pay off all of its debts.
AKT-A has a worse Debt to FCF ratio (44.57) than 65.52% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that AKT-A is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.28, AKT-A is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 44.57 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.41
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.96 indicates that AKT-A should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.96, AKT-A is doing good in the industry, outperforming 75.86% of the companies in the same industry.
AKT-A has a Quick Ratio of 1.96. This is a normal value and indicates that AKT-A is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AKT-A (1.96) is better than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
AKT-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.07%, which is quite impressive.
The Revenue has been growing slightly by 2.57% in the past year.
The Revenue has been growing slightly by 1.91% on average over the past years.
EPS 1Y (TTM)62.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y20.65%
Revenue growth 5Y1.91%
Sales Q2Q%40.56%
3.2 Future
AKT-A is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.46% yearly.
Based on estimates for the next years, AKT-A will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y52.94%
EPS Next 2Y29.83%
EPS Next 3Y20.46%
EPS Next 5YN/A
Revenue Next Year13.84%
Revenue Next 2Y4.37%
Revenue Next 3Y3.31%
Revenue Next 5YN/A
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
AKT-A is valuated cheaply with a Price/Earnings ratio of 4.51.
89.66% of the companies in the same industry are more expensive than AKT-A, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.53, AKT-A is valued rather cheaply.
The Price/Forward Earnings ratio is 3.81, which indicates a rather cheap valuation of AKT-A.
AKT-A's Price/Forward Earnings ratio is rather cheap when compared to the industry. AKT-A is cheaper than 89.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, AKT-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.51 | ||
| Fwd PE | 3.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AKT-A is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
AKT-A's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AKT-A is more expensive than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.67 | ||
| EV/EBITDA | 3.35 |
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 AKT-A's earnings are expected to grow with 20.46% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y29.83%
EPS Next 3Y20.46%
5. Dividend
5.1 Amount
No dividends for AKT-A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:AKT-A (6/6/2025, 7:00:00 PM)
2.12
+0.02 (+0.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners21.17%
Inst Owner ChangeN/A
Ins Owners5.68%
Ins Owner ChangeN/A
Market Cap84.23M
Analysts84.44
Price Target3.06 (44.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)78.73%
Min EPS beat(2)45.63%
Max EPS beat(2)111.83%
EPS beat(4)3
Avg EPS beat(4)23.18%
Min EPS beat(4)-67.64%
Max EPS beat(4)111.83%
EPS beat(8)5
Avg EPS beat(8)-30.52%
EPS beat(12)8
Avg EPS beat(12)85.26%
EPS beat(16)10
Avg EPS beat(16)56.31%
Revenue beat(2)0
Avg Revenue beat(2)-14.32%
Min Revenue beat(2)-16.4%
Max Revenue beat(2)-12.24%
Revenue beat(4)0
Avg Revenue beat(4)-14.6%
Min Revenue beat(4)-20.55%
Max Revenue beat(4)-9.22%
Revenue beat(8)0
Avg Revenue beat(8)-12.18%
Revenue beat(12)0
Avg Revenue beat(12)-9.48%
Revenue beat(16)0
Avg Revenue beat(16)-11.41%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)100%
EPS NY rev (1m)0%
EPS NY rev (3m)44.12%
Revenue NQ rev (1m)7.27%
Revenue NQ rev (3m)7.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.51 | ||
| Fwd PE | 3.81 | ||
| P/S | 0.4 | ||
| P/FCF | 69.67 | ||
| P/OCF | 2.61 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 3.35 |
EPS(TTM)0.47
EY22.17%
EPS(NY)0.56
Fwd EY26.24%
FCF(TTM)0.03
FCFY1.44%
OCF(TTM)0.81
OCFY38.38%
SpS5.34
BVpS4.54
TBVpS4.54
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 10.47% | ||
| ROCE | 4.71% | ||
| ROIC | 3.39% | ||
| ROICexc | 3.54% | ||
| ROICexgc | 3.54% | ||
| OM | 5.39% | ||
| PM (TTM) | 8.9% | ||
| GM | N/A | ||
| FCFM | 0.57% |
ROA(3y)4.46%
ROA(5y)-6.44%
ROE(3y)7.47%
ROE(5y)-10.96%
ROIC(3y)2.35%
ROIC(5y)N/A
ROICexc(3y)2.46%
ROICexc(5y)N/A
ROICexgc(3y)2.46%
ROICexgc(5y)N/A
ROCE(3y)3.26%
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 44.57 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 116.92% | ||
| Cap/Sales | 14.67% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 84.97% | ||
| Profit Quality | 6.41% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 1.7 |
F-Score6
WACC8.18%
ROIC/WACC0.41
Cap/Depr(3y)82.43%
Cap/Depr(5y)65.49%
Cap/Sales(3y)11.45%
Cap/Sales(5y)11.12%
Profit Quality(3y)27.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)62.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y52.94%
EPS Next 2Y29.83%
EPS Next 3Y20.46%
EPS Next 5YN/A
Revenue 1Y (TTM)2.57%
Revenue growth 3Y20.65%
Revenue growth 5Y1.91%
Sales Q2Q%40.56%
Revenue Next Year13.84%
Revenue Next 2Y4.37%
Revenue Next 3Y3.31%
Revenue Next 5YN/A
EBIT growth 1Y81.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1186.95%
EBIT Next 3Y125.97%
EBIT Next 5YN/A
FCF growth 1Y-65.09%
FCF growth 3YN/A
FCF growth 5Y-18.87%
OCF growth 1Y84.32%
OCF growth 3YN/A
OCF growth 5Y7.02%