DB:DQU

Stock Analysis Report

Executive Summary

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services onshore and offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Dril-Quip's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DQU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.9%

DQU

6.5%

DE Energy Services

9.9%

DE Market


1 Year Return

-39.4%

DQU

-58.9%

DE Energy Services

-17.5%

DE Market

Return vs Industry: DQU exceeded the German Energy Services industry which returned -57.9% over the past year.

Return vs Market: DQU underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

DQUIndustryMarket
7 Day-8.9%6.5%9.9%
30 Day-23.1%-40.7%-16.6%
90 Day-39.7%-53.6%-24.8%
1 Year-39.4%-39.4%-57.8%-58.9%-15.0%-17.5%
3 Year-51.6%-51.6%-64.4%-67.9%-17.4%-24.5%
5 Year-60.4%-60.4%-66.3%-87.3%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Dril-Quip's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dril-Quip 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: DQU (€24.6) is trading below our estimate of fair value (€70.14)

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


Price To Earnings Ratio

PE vs Industry: DQU is poor value based on its PE Ratio (587.6x) compared to the Energy Services industry average (9.2x).

PE vs Market: DQU is poor value based on its PE Ratio (587.6x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: DQU is poor value based on its PEG Ratio (10.5x)


Price to Book Ratio

PB vs Industry: DQU is overvalued based on its PB Ratio (0.9x) compared to the XE Energy Services industry average (0.4x).


Next Steps

Future Growth

How is Dril-Quip forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

56.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DQU's forecast earnings growth (56.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: DQU's earnings (56.2% per year) are forecast to grow faster than the German market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DQU's revenue (6.7% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: DQU's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Dril-Quip performed over the past 5 years?

-64.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DQU has a large one-off loss of $2.9M impacting its December 31 2019 financial results.

Growing Profit Margin: DQU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DQU's earnings have declined by -64.1% per year over the past 5 years.

Accelerating Growth: DQU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DQU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (0.7%).


Return on Equity

High ROE: DQU's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is Dril-Quip's financial position?


Financial Position Analysis

Short Term Liabilities: DQU's short term assets ($880.5M) exceed its short term liabilities ($96.9M).

Long Term Liabilities: DQU's short term assets ($880.5M) exceed its long term liabilities ($18.9M).


Debt to Equity History and Analysis

Debt Level: DQU is debt free.

Reducing Debt: DQU has not had any debt for past 5 years.

Debt Coverage: DQU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DQU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if DQU's debt is covered by short term assets.


Next Steps

Dividend

What is Dril-Quip's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Blake DeBerry (59yo)

8.42s

Tenure

US$4,096,973

Compensation

Mr. Blake T. DeBerry has been the Chief Executive Officer and President of Dril-Quip, Inc. since October 2011. Mr. DeBerry served as Senior Vice President of Sales and Engineering at Dril-Quip, Inc. since  ...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD4.10M) is above average for companies of similar size in the German market ($USD1.40M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Blake DeBerry
President8.42yrsUS$4.10m0.53% $4.8m
Jeffrey Bird
Senior VP of Production Operations & CFO3yrsUS$1.40m0.16% $1.5m
James Webster
VP, General Counsel & Secretary9yrsUS$1.11m0.14% $1.3m
Raj Kumar
VP of Finance & Chief Accounting Officer1yrno data0.030% $274.7k

5.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: DQU's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Blake DeBerry
President8.42yrsUS$4.10m0.53% $4.8m
Alexander Shukis
Director17yrsUS$218.02k0.052% $473.5k
John Lovoi
Chairman of the Board8.42yrsUS$306.66k0.11% $985.2k
Terence Jupp
Director7.33yrsUS$222.39k0.078% $710.5k
Steven Newman
Director4.58yrsUS$209.93k0.059% $540.4k
Amy Schwetz
Director0.50yrno data0.0088% $79.7k

7.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DQU's board of directors are considered experienced (7.9 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

Dril-Quip, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dril-Quip, Inc.
  • Ticker: DQU
  • Exchange: DB
  • Founded: 1981
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$1.003b
  • Listing Market Cap: US$909.353m
  • Shares outstanding: 35.87m
  • Website: https://www.dril-quip.com

Number of Employees


Location

  • Dril-Quip, Inc.
  • 6401 North Eldridge Parkway
  • Houston
  • Texas
  • 77041
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRQNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1997
DQUDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1997
DQUBRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 1997

Biography

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services onshore and offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. The company’s principal products include subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves, as well as downhole tools. It also provides technical advisory services, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products. The company’s products are used to explore for oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, and Spars, as well as moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:30
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.