TSX:AKT.A

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and overvalued.


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 +/- 12% a week.

Volatility Over Time: AKT.A's weekly volatility has decreased from 18% to 12% over the past year.


Market Performance


7 Day Return

21.0%

AKT.A

-0.8%

CA Energy Services

0.04%

CA Market


1 Year Return

-62.5%

AKT.A

-39.5%

CA Energy Services

1.3%

CA Market

Return vs Industry: AKT.A underperformed the Canadian Energy Services industry which returned -40.6% over the past year.

Return vs Market: AKT.A underperformed the Canadian Market which returned 0.7% over the past year.


Shareholder returns

AKT.AIndustryMarket
7 Day21.0%-0.8%0.04%
30 Day29.3%34.4%10.9%
90 Day15.4%23.7%7.2%
1 Year-62.5%-62.5%-37.1%-39.5%5.0%1.3%
3 Year-93.9%-94.6%-62.2%-65.6%13.5%2.4%
5 Year-93.9%-95.1%-53.9%-60.6%54.2%30.5%

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?

0.082x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AKT.A (CA$0.38) is trading above our estimate of fair value (CA$0.08)

Significantly Below Fair Value: AKT.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AKT.A is unprofitable, so we can't compare its PE Ratio to the CA 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 (0.1x) compared to the CA Energy Services industry average (0.4x).


Next Steps

Future Growth

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

69.5%

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 (13.3% per year) is forecast to grow faster than the Canadian market (6.2% per year).

High Growth Revenue: AKT.A's revenue (13.3% per year) is forecast to grow slower 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.


Next Steps

Past Performance

How has AKITA Drilling performed over the past 5 years?

-28.5%

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 28.5% 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 (-56.7%).


Return on Equity

High ROE: AKT.A has a negative Return on Equity (-40.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is AKITA Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: AKT.A's short term assets (CA$23.5M) exceed its short term liabilities (CA$12.7M).

Long Term Liabilities: AKT.A's short term assets (CA$23.5M) do not cover its long term liabilities (CA$85.0M).


Debt to Equity History and Analysis

Debt Level: AKT.A's debt to equity ratio (41.2%) 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 20.1% per year.


Next Steps

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?

8.2yrs

Average management tenure


CEO

Karl Ruud (66 yo)

11.42yrs

Tenure

CA$759,323

Compensation

Mr. Karl A. Ruud has been Chief Executive Officer and President at Akita Drilling Ltd. since July 2009. Mr. Ruud served as Chief Operating Officer of AKITA Drilling Ltd. from March 2001 to June 2009. He ha...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD586.91K) is above average for companies of similar size in the Canadian market ($USD166.28K).

Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Karl Ruud
President11.42yrsCA$759.32k0.15%
CA$ 21.9k
Darcy Reynolds
VP of Finance & CFO3.75yrsCA$303.87k0.12%
CA$ 17.0k
Colin Dease
VP of Canadian Operations & Corporate Secretaryno dataCA$302.32k0.29%
CA$ 42.2k
Craig Kushner
Director of Human Resources9.92yrsCA$191.45k0.079%
CA$ 11.4k
Raymond Coleman
President of USA Division5.08yrsCA$493.80k0.11%
CA$ 15.9k
Fred Hensel
Vice President of Canadian Operationsno dataCA$920.55k0.17%
CA$ 24.9k
Lorne Thompson
Vice President of Technical Operations8.17yrsCA$363.58kno data

8.2yrs

Average Tenure

53yo

Average Age

Experienced Management: AKT.A's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Karl Ruud
President11.42yrsCA$759.32k0.15%
CA$ 21.9k
Nancy Southern
Deputy Chairman of the Boardno dataCA$38.13k0.27%
CA$ 39.5k
Charles Wilson
Independent Director18.33yrsCA$43.75k0.13%
CA$ 19.4k
Douglas Dafoe
Independent Director2.25yrsCA$40.38k0.067%
CA$ 9.7k
Linda Southern-Heathcott
Chairman of the Board14.58yrsCA$217.13k0.089%
CA$ 12.9k
Dale Richardson
Director27.08yrsCA$41.50k0.14%
CA$ 19.9k
Henry Wilmot
Independent Director6.08yrsCA$42.63k0.035%
CA$ 5.0k
Loraine Charlton
Independent Director14.58yrsCA$61.75k0.082%
CA$ 11.9k
Harish Mohan
Independent Director9.33yrsCA$52.75k0.057%
CA$ 8.3k

12.6yrs

Average Tenure

66yo

Average Age

Experienced Board: AKT.A's board of directors are seasoned and experienced ( 12.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$14.524m
  • Shares outstanding: 39.61m
  • Website: https://www.akita-drilling.com

Number of Employees


Location

  • AKITA Drilling Ltd.
  • 333 - 7th Avenue SW
  • Suite 1000
  • Calgary
  • Alberta
  • T2P 2Z1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKT.ATSX (The Toronto Stock Exchange)YesClass A Non-Voting Common SharesCACADJan 1993
AKT.BTSX (The Toronto Stock Exchange)Class B Common SharesCACADJan 1993
AKTA.FOTCPK (Pink Sheets LLC)YesClass A Non-Voting Common SharesUSUSDJan 1993
774BST (Boerse-Stuttgart)YesClass A Non-Voting Common SharesDEEURJan 1993

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 Analysis2020/12/02 23:09
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.