TSX:AKT.A

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and fair value.


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


Market Performance


7 Day Return

-3.0%

AKT.A

-1.9%

CA Energy Services

-0.2%

CA Market


1 Year Return

-76.0%

AKT.A

-37.2%

CA Energy Services

1.1%

CA Market

Return vs Industry: AKT.A underperformed the Canadian Energy Services industry which returned -37.2% over the past year.

Return vs Market: AKT.A underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

AKT.AIndustryMarket
7 Day-3.0%-1.9%-0.2%
30 Day-18.8%-12.1%-3.3%
90 Day-45.4%-18.8%-1.6%
1 Year-74.1%-76.0%-35.4%-37.2%4.6%1.1%
3 Year-81.6%-84.5%-44.1%-48.2%13.1%3.1%
5 Year-88.1%-90.7%-69.6%-72.9%24.7%6.7%

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

Undervalued: AKT.A (CA$1.3) is trading below our estimate of fair value (CA$6.08)

Significantly Undervalued: 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 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

Low 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 (0.8x).


Next Steps

Future Growth

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

71.7%

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 (9.6% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: AKT.A's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-46.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AKT.A is unprofitable, and losses have increased over the past 5 years at a rate of -46.1% 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 (15.8%).


Return on Equity

High ROE: AKT.A has a negative Return on Equity (-6.81%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AKT.A is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AKT.A is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is AKITA Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: AKT.A's short term assets (CA$45.3M) exceeds its short term liabilities (CA$31.8M)

Long Term Liabilities: AKT.A's short term assets (45.3M) do not cover its long term liabilities (100.9M)


Debt to Equity History and Analysis

Debt Level: AKT.A's debt to equity ratio (32.6%) is considered satisfactory

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


Balance Sheet

Inventory Level: AKT.A has a high level of physical assets or inventory.

Debt Coverage by Assets: AKT.A's debt is not covered by short term assets (assets are 0.5x debt).


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: AKT.A has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AKT.A has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

26.15%

Current Dividend Yield


Dividend Yield vs Market

company26.2%marketbottom25%2.0%markettop25%6.0%industryaverage5.6%forecastin3Years10.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AKT.A's dividend (26.15%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: AKT.A's dividend (26.15%) is in the top 25% of dividend payers in the Canadian market (6.03%)

Stable Dividend: AKT.A's dividends per share have been stable in the past 10 years.

Growing Dividend: AKT.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: AKT.A is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of AKITA Drilling's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Karl Ruud (65yo)

10.3yrs

Tenure

CA$1,094,603

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 ($USD833.41K) is about average for companies of similar size in the Canadian market ($USD122.22K).

Compensation vs Earnings: Karl's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.0yrs

Average Tenure

52yo

Average Age

Experienced Management: AKT.A's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

13.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: AKT.A's board of directors are seasoned and experienced ( 13.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$7,07027 Sep 19
Colin Dease
EntityIndividual
Role
Chief Legal Officer
VP, Corporate Secretary & Legal Counsel
Shares7,000
Max PriceCA$1.01
BuyCA$99,90303 Jun 19
Nancy Southern
EntityIndividual
Role
Vice Chairman
Deputy Chairman of the Board
Shares34,800
Max PriceCA$2.87
BuyCA$56,45627 May 19
Colin Dease
EntityIndividual
Role
Chief Legal Officer
VP, Corporate Secretary & Legal Counsel
Shares14,500
Max PriceCA$4.36
BuyCA$58,65027 May 19
Fred Hensel
EntityIndividual
Role
Other Key Executive
Vice President of Canadian Operations
Shares15,000
Max PriceCA$3.91
SellCA$1,632,72203 Apr 19
LRP Luxembourg Holdings SARL
EntityCompany
Shares502,376
Max PriceCA$3.25

Ownership Breakdown


Management Team

  • Karl Ruud (65yo)

    President

    • Tenure: 10.3yrs
    • Compensation: CA$1.09m
  • Craig Kushner (61yo)

    Director of Human Resources

    • Tenure: 8.8yrs
    • Compensation: CA$343.21k
  • Fred Hensel (58yo)

    Vice President of Canadian Operations

    • Tenure: 0yrs
    • Compensation: CA$298.98k
  • Ray Coleman (52yo)

    Senior VP of AKITA Drilling Ltd. & MD of US Division

    • Tenure: 3.9yrs
    • Compensation: CA$536.24k
  • Colin Dease (44yo)

    VP, Corporate Secretary & Legal Counsel

    • Tenure: 0yrs
    • Compensation: CA$285.78k
  • Lorne Thompson (49yo)

    Vice President of Technical Operations

    • Tenure: 7yrs
    • Compensation: CA$363.58k
  • Darcy Reynolds (43yo)

    VP of Finance & CFO

    • Tenure: 2.6yrs
    • Compensation: CA$287.78k

Board Members

  • Nancy Southern (62yo)

    Deputy Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$38.13k
  • Charles Wilson (79yo)

    Director

    • Tenure: 17.2yrs
    • Compensation: CA$51.13k
  • Doug Dafoe (64yo)

    Director

    • Tenure: 1.1yrs
  • Linda Southern-Heathcott (56yo)

    Chairman of the Board

    • Tenure: 13.4yrs
    • Compensation: CA$104.13k
  • Karl Ruud (65yo)

    President

    • Tenure: 10.3yrs
    • Compensation: CA$1.09m
  • Dale Richardson (75yo)

    Director

    • Tenure: 25.9yrs
    • Compensation: CA$47.63k
  • Harry Wilmot (66yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: CA$42.13k
  • C. Spitznagel (62yo)

    Director

    • Tenure: 25.9yrs
    • Compensation: CA$42.63k
  • Loraine Charlton (62yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: CA$69.63k
  • Harish Mohan (66yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: CA$64.00k

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$53.541m
  • Shares outstanding: 39.61m
  • Website: https://www.akita-drilling.com

Number of Employees


Location

  • AKITA Drilling Ltd.
  • 1000, 333 - 7th Avenue SW
  • 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 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 min ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.