DRIL-QUIP INC (DRQ)

US2620371045 - Common Stock

18.615  +0.21 (+1.17%)

Fundamental Rating

4

DRQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while it does show a decent growth rate.



1

1. Profitability

1.1 Basic Checks

In the past year DRQ has reported negative net income.
In the past year DRQ had a positive cash flow from operations.
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 worse Return On Assets (-2.12%) than 72.31% of its industry peers.
DRQ's Return On Equity of -2.53% is on the low side compared to the rest of the industry. DRQ is outperformed by 70.77% of its industry peers.
DRQ has a worse Return On Invested Capital (0.12%) than 83.08% of its industry peers.
Industry RankSector 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 RankSector 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%

8

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.
DRQ has more shares outstanding than it did 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

DRQ has an Altman-Z score of 4.72. This indicates that DRQ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DRQ (4.72) is better than 92.31% of its industry peers.
DRQ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.72
ROIC/WACC0.01
WACC9.11%

2.3 Liquidity

A Current Ratio of 5.35 indicates that DRQ has no problem at all paying its short term obligations.
The Current ratio of DRQ (5.35) is better than 95.38% of its industry peers.
DRQ has a Quick Ratio of 3.79. This indicates that DRQ is financially healthy and has no problem in meeting its short term obligations.
DRQ has a Quick ratio of 3.79. This is amongst the best in the industry. DRQ outperforms 92.31% of its industry peers.
Industry RankSector Rank
Current Ratio 5.35
Quick Ratio 3.79

5

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 19.93%.
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

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.
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.

3

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 rather expensively with a Price/Forward Earnings ratio of 21.94.
Based on the Price/Forward Earnings ratio, DRQ is valued expensively inside the industry as 83.08% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of DRQ to the average of the S&P500 Index (19.93), we can say DRQ is valued inline with the index average.
Industry RankSector Rank
PE N/A
Fwd PE 21.94

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 78.46% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRQ is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 26.06
EV/EBITDA 12.87

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 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%

0

5. Dividend

5.1 Amount

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

DRIL-QUIP INC

NYSE:DRQ (6/12/2024, 2:09:49 PM)

18.615

+0.21 (+1.17%)

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 Cap640.73M
Analysts
Price Target
Dividend
Industry RankSector 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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE N/A
Fwd PE 21.94
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 RankSector 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 RankSector 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