DRIL-QUIP INC (DRQ)
US2620371045 - Common Stock
Overall DRQ gets a fundamental rating of 4 out of 10. We evaluated DRQ against 65 industry peers in the Energy Equipment & Services industry. DRQ has a great financial health rating, but its profitability evaluates not so good. DRQ is quite expensive at the moment. It does show a decent growth rate.
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.
In multiple years DRQ reported negative net income over the last 5 years.
In multiple years DRQ reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of DRQ (0.06%) is worse than 66.15% of its industry peers.
DRQ's Return On Equity of 0.07% is on the low side compared to the rest of the industry. DRQ is outperformed by 66.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.22%, DRQ is doing worse than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.07% | ||
| ROIC | 0.22% |
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 Profit Margin of 0.14% is on the low side compared to the rest of the industry. DRQ is outperformed by 66.15% of its industry peers.
DRQ has a Operating Margin of 0.60%. This is amonst the worse of the industry: DRQ underperforms 81.54% of its industry peers.
DRQ has a Gross Margin of 27.25%. This is comparable to the rest of the industry: DRQ outperforms 47.69% of its industry peers.
DRQ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.6% | ||
| PM (TTM) | 0.14% | ||
| GM | 27.25% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRQ is destroying value.
The number of shares outstanding for DRQ has been increased compared to 1 year ago.
DRQ has less shares outstanding than it did 5 years ago.
DRQ has a worse debt/assets ratio than last year.
2.2 Solvency
DRQ has an Altman-Z score of 5.21. This indicates that DRQ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.21, DRQ belongs to the top of the industry, outperforming 92.31% 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 | N/A | ||
| Altman-Z | 5.21 |
ROIC/WACC0.02
WACC9.31%
2.3 Liquidity
DRQ has a Current Ratio of 6.11. This indicates that DRQ is financially healthy and has no problem in meeting its short term obligations.
DRQ has a Current ratio of 6.11. This is amongst the best in the industry. DRQ outperforms 98.46% of its industry peers.
A Quick Ratio of 4.46 indicates that DRQ has no problem at all paying its short term obligations.
DRQ's Quick ratio of 4.46 is amongst the best of the industry. DRQ outperforms 98.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.11 | ||
| Quick Ratio | 4.46 |
3. Growth
3.1 Past
DRQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.43%, which is quite impressive.
DRQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.12%.
The Revenue has been growing slightly by 1.97% on average over the past years.
EPS 1Y (TTM)46.43%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)17.12%
Revenue growth 3Y5.13%
Revenue growth 5Y1.97%
Revenue growth Q2Q30.5%
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.
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 Y556.86%
EPS Next 2Y194.78%
EPS Next 3Y119.8%
EPS Next 5Y67.14%
Revenue Next Year19.18%
Revenue Next 2Y14.9%
Revenue Next 3Y10.26%
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
DRQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
DRQ is valuated quite expensively with a Price/Forward Earnings ratio of 28.98.
76.92% of the companies in the same industry are cheaper than DRQ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DRQ to the average of the S&P500 Index (21.32), we can say DRQ is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRQ indicates a rather expensive valuation: DRQ more expensive than 81.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.52 |
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.
DRQ's earnings are expected to grow with 119.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y194.78%
EPS Next 3Y119.8%
5. Dividend
5.1 Amount
DRQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DRIL-QUIP INC
NYSE:DRQ (4/17/2024, 7:04:00 PM)
After market: 19.86 0 (0%)19.86
-0.75 (-3.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap683.58M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.6% | ||
| PM (TTM) | 0.14% | ||
| GM | 27.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.11 | ||
| Quick Ratio | 4.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)46.43%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y556.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.12%
Revenue growth 3Y5.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
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OCF growth 3Y
OCF growth 5Y