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. While showing a medium growth rate, DRQ is valued expensive at the moment.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.12%, DRQ is doing worse than 72.31% of the companies in the same industry.
DRQ has a Return On Equity of -2.53%. This is in the lower half of the industry: DRQ underperforms 70.77% of its industry peers.
DRQ has a worse Return On Invested Capital (0.12%) than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.12% | ||
| ROE | -2.53% | ||
| ROIC | 0.12% |
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
The Operating Margin of DRQ (0.30%) is worse than 81.54% of its industry peers.
DRQ has a Gross Margin (27.53%) which is comparable to the rest of the industry.
DRQ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.3% | ||
| PM (TTM) | N/A | ||
| GM | 27.53% |
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
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.
The number of shares outstanding for DRQ has been reduced compared to 5 years ago.
The debt/assets ratio for DRQ is higher compared to a year ago.
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 92.31% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.52 |
ROIC/WACC0.01
WACC8.91%
2.3 Liquidity
DRQ has a Current Ratio of 5.35. This indicates that DRQ is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.35, DRQ belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
A Quick Ratio of 3.79 indicates that DRQ has no problem at all paying its short term obligations.
The Quick ratio of DRQ (3.79) is better than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.35 | ||
| Quick Ratio | 3.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.43% over the past year.
Looking at the last year, DRQ shows a quite strong growth in Revenue. The Revenue has grown by 19.93% in the last year.
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 Q2Q%-6100%
Revenue 1Y (TTM)19.93%
Revenue growth 3Y5.13%
Revenue growth 5Y1.97%
Sales Q2Q%21.39%
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
Based on estimates for the next years, DRQ will show a quite strong growth in Revenue. The Revenue will grow by 12.73% on average per year.
EPS Next Y396.27%
EPS Next 2Y176.69%
EPS Next 3Y116.97%
EPS Next 5Y67.14%
Revenue Next Year20.5%
Revenue Next 2Y14.38%
Revenue Next 3Y10.65%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for DRQ. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 20.03, the valuation of DRQ can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DRQ is valued more expensive than 83.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. DRQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.03 |
4.2 Price Multiples
DRQ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DRQ is more expensive than 73.85% of the companies in the same industry.
DRQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.79 | ||
| EV/EBITDA | 11.26 |
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 116.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y176.69%
EPS Next 3Y116.97%
5. Dividend
5.1 Amount
DRQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DRIL-QUIP INC
NYSE:DRQ (7/26/2024, 7:25:41 PM)
After market: 16.99 0 (0%)16.99
+0.15 (+0.89%)
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 Cap584.80M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.03 | ||
| 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 | -2.12% | ||
| ROE | -2.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.3% | ||
| PM (TTM) | N/A | ||
| GM | 27.53% | ||
| 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.35 | ||
| Quick Ratio | 3.79 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)46.43%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y396.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.93%
Revenue growth 3Y5.13%
Revenue growth 5Y
Sales 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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y