TSX:AKT.A

Stock Analysis Report

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Market Cap

CA$36.8m

Last Updated

2021/08/04 23:04 UTC

Data Sources

Company Financials +

Executive Summary

AKITA Drilling Ltd. provides contract drilling services in Canada and the United States. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has AKITA Drilling's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKT.A is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: AKT.A's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

-8.7%

AKT.A

-0.5%

CA Energy Services

1.4%

CA Market


1 Year Return

133.3%

AKT.A

71.0%

CA Energy Services

28.0%

CA Market

Return vs Industry: AKT.A exceeded the Canadian Energy Services industry which returned 71% over the past year.

Return vs Market: AKT.A exceeded the Canadian Market which returned 28% over the past year.


Shareholder returns

AKT.AIndustryMarket
7 Day-8.7%-0.5%1.4%
30 Day-34.9%-9.2%-0.2%
90 Day-16.0%1.0%2.8%
1 Year133.3%133.3%72.8%71.0%31.8%28.0%
3 Year-82.1%-83.7%-51.1%-55.1%33.0%20.1%
5 Year-87.5%-89.6%-62.7%-66.2%50.7%28.5%

Long-Term Price Volatility Vs. Market

How volatile is AKITA Drilling's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AKITA Drilling undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKT.A (CA$0.84) is trading below our estimate of fair value (CA$8.36)

Significantly Below Fair Value: AKT.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKT.A is unprofitable, so we can't compare its PE Ratio to the Canadian Energy Services industry average.

PE vs Market: AKT.A is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AKT.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AKT.A is good value based on its PB Ratio (0.2x) compared to the CA Energy Services industry average (0.7x).


Future Growth

How is AKITA Drilling forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

74.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKT.A is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AKT.A is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AKT.A is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AKT.A's revenue (34.5% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: AKT.A's revenue (34.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKT.A is forecast to be unprofitable in 3 years.


Past Performance

How has AKITA Drilling performed over the past 5 years?

-30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKT.A is currently unprofitable.

Growing Profit Margin: AKT.A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AKT.A is unprofitable, and losses have increased over the past 5 years at a rate of 30.3% per year.

Accelerating Growth: Unable to compare AKT.A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AKT.A is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (5%).


Return on Equity

High ROE: AKT.A has a negative Return on Equity (-32.02%), as it is currently unprofitable.


Financial Health

How is AKITA Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: AKT.A's short term assets (CA$21.8M) exceed its short term liabilities (CA$14.2M).

Long Term Liabilities: AKT.A's short term assets (CA$21.8M) do not cover its long term liabilities (CA$83.8M).


Debt to Equity History and Analysis

Debt Level: AKT.A's debt to equity ratio (52.3%) is considered high.

Reducing Debt: Insufficient data to determine if AKT.A's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AKT.A has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AKT.A is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5% per year.


Dividend

What is AKITA Drilling current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AKT.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AKT.A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AKT.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AKT.A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AKT.A is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AKT.A's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Linda Southern-Heathcott (58 yo)

0.25

Tenure

CA$88,818

Compensation

Ms. Linda A. Southern-Heathcott, ICD.D, is Co-Owner of Margaret E. Southern Spousal Trust. Ms. Southern-Heathcott serves as the President and Chief Executive Officer of Spruce Meadows Co. Ms. Southern-Heat...


Leadership Team

Experienced Management: AKT.A's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: AKT.A's board of directors are seasoned and experienced ( 15.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AKT.A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AKITA Drilling Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AKITA Drilling Ltd.
  • Ticker: AKT.A
  • Exchange: TSX
  • Founded: 1964
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: CA$36.810m
  • Shares outstanding: 39.61m
  • Website: https://www.akita-drilling.com

Number of Employees


Location

  • AKITA Drilling Ltd.
  • 1000, 333 – 7th Avenue S.W.
  • Suite 1000
  • Calgary
  • Alberta
  • T2P 2Z1
  • Canada

Listings


Biography

AKITA Drilling Ltd. provides contract drilling services in Canada and the United States. The company is involved in the drilling of oil and gas wells; other forms of drilling related to potash mining; and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 23:04
End of Day Share Price2021/08/04 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.