New Risk • Jul 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (37% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Shareholders have been diluted in the past year (3.9% increase in shares outstanding). Market cap is less than US$100m (€29.0m market cap, or US$31.3m). Reported Earnings • May 16
First quarter 2024 earnings released: US$0.06 loss per share (vs US$0.052 profit in 1Q 2023) First quarter 2024 results: US$0.06 loss per share (down from US$0.052 profit in 1Q 2023). Revenue: US$4.95m (down 21% from 1Q 2023). Net loss: US$1.82m (down 220% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 118% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to €1.01, the stock trades at a trailing P/E ratio of 4.5x. Average trailing P/E is 11x in the Energy Services industry in Europe. Total returns to shareholders of 12% over the past year. Reported Earnings • Mar 10
Full year 2023 earnings released: EPS: US$0.25 (vs US$0.037 in FY 2022) Full year 2023 results: EPS: US$0.25 (up from US$0.037 in FY 2022). Revenue: US$21.0m (up 9.8% from FY 2022). Net income: US$7.44m (up US$6.37m from FY 2022). Profit margin: 36% (up from 5.6% in FY 2022). Announcement • Feb 23
Superior Drilling Products, Inc. to Report Q4, 2023 Results on Mar 07, 2024 Superior Drilling Products, Inc. announced that they will report Q4, 2023 results on Mar 07, 2024 New Risk • Nov 20
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (3.9% increase in shares outstanding). Market cap is less than US$100m (€19.4m market cap, or US$21.1m). Reported Earnings • Nov 12
Third quarter 2023 earnings released: EPS: US$0 (vs US$0.022 in 3Q 2022) Third quarter 2023 results: EPS: US$0 (down from US$0.022 in 3Q 2022). Revenue: US$5.05m (down 2.3% from 3Q 2022). Net income: US$13.8k (down 98% from 3Q 2022). Profit margin: 0.3% (down from 12% in 3Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 2.0% growth forecast for the Energy Services industry in Europe. Announcement • Nov 10
Superior Drilling Products, Inc. Reaffirms Earnings Guidance for the Year 2023 Superior Drilling Products, Inc. reaffirmed earnings guidance for the year 2023. For the year, the company expects revenue to be in the range from $22.0 million to $24.0 million. Announcement • Oct 27
Superior Drilling Products, Inc. to Report Q3, 2023 Results on Nov 09, 2023 Superior Drilling Products, Inc. announced that they will report Q3, 2023 results Pre-Market on Nov 09, 2023 Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: US$0.011 (vs US$0.002 loss in 2Q 2022) Second quarter 2023 results: EPS: US$0.011 (up from US$0.002 loss in 2Q 2022). Revenue: US$5.37m (up 18% from 2Q 2022). Net income: US$323.2k (up US$379.7k from 2Q 2022). Profit margin: 6.0% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 3.1% growth forecast for the Energy Services industry in Europe. Announcement • Aug 15
Superior Drilling Products, Inc. Revises Earnings Guidance for the Year 2023 Superior Drilling Products, Inc. revised earnings guidance for the year 2023. For the year, the company expects revenue to be in the range from $22.0 million to $24.0 million against previous guidance of $24.0 million to $27.0 million. New Risk • Jul 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (37% accrual ratio). Minor Risks Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Market cap is less than US$100m (€34.6m market cap, or US$38.3m). Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to €1.37, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Energy Services industry in Europe. Total returns to shareholders of 62% over the past year. Announcement • Jul 01
Superior Drilling Products, Inc., Annual General Meeting, Aug 11, 2023 Superior Drilling Products, Inc., Annual General Meeting, Aug 11, 2023, at 09:00 Mountain Daylight. Location: Uintah Conference Center 313 E.200 S. Vernal Utah United States Agenda: To consider elect two Class III members of the Board of Directors (the “Board”) to serve until 2026 meeting of stockholders; to ratify the appointment of Moss Adams LLP as independent registered public accounting firm for the fiscal year ending December 31, 2023; and to transact any other business as may properly come before the meeting. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to €1.08, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Energy Services industry in Europe. Total returns to shareholders of 17% over the past year. Reported Earnings • May 14
First quarter 2023 earnings released: EPS: US$0.052 (vs US$0.005 in 1Q 2022) First quarter 2023 results: EPS: US$0.052 (up from US$0.005 in 1Q 2022). Revenue: US$6.28m (up 52% from 1Q 2022). Net income: US$1.51m (up US$1.36m from 1Q 2022). Profit margin: 24% (up from 3.6% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 3.0% growth forecast for the Energy Services industry in Europe. Announcement • May 12
Superior Drilling Products, Inc. Provides Earnings Guidance for the Year 2023 Superior Drilling Products, Inc. provides earnings guidance for the year 2023. For the year, the company expects revenue to be in the range from $24.0 million to $27.0 million. Buying Opportunity • Mar 31
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be €1.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 48% in 2 years. Earnings is forecast to grow by 399% in the next 2 years. Recent Insider Transactions • Mar 30
Insider recently bought €53k worth of stock On the 24th of March, Jeffrey Eberwein bought around 66k shares on-market at roughly €0.81 per share. This transaction amounted to 3.0% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth €107k. Insiders have collectively bought €521k more in shares than they have sold in the last 12 months. Buying Opportunity • Mar 16
Now 24% undervalued Over the last 90 days, the stock is up 8.6%. The fair value is estimated to be €1.08, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 48% in 2 years. Earnings is forecast to grow by 399% in the next 2 years. Reported Earnings • Mar 11
Full year 2022 earnings released: EPS: US$0.037 (vs US$0.02 loss in FY 2021) Full year 2022 results: EPS: US$0.037 (up from US$0.02 loss in FY 2021). Revenue: US$19.1m (up 43% from FY 2021). Net income: US$1.07m (up US$1.59m from FY 2021). Profit margin: 5.6% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Energy Services industry in Europe. Reported Earnings • Mar 11
Full year 2022 earnings released: EPS: US$0.037 (vs US$0.02 loss in FY 2021) Full year 2022 results: EPS: US$0.037 (up from US$0.02 loss in FY 2021). Revenue: US$19.1m (up 43% from FY 2021). Net income: US$1.07m (up US$1.59m from FY 2021). Profit margin: 5.6% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Energy Services industry in Europe. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to €1.06, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Energy Services industry in Europe. Total returns to shareholders of 16% over the past year. Recent Insider Transactions • Mar 01
Insider recently bought €60k worth of stock On the 23rd of February, Jeffrey Eberwein bought around 65k shares on-market at roughly €0.92 per share. This transaction amounted to 3.1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth €107k. Insiders have collectively bought €468k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Feb 22
Insider recently bought €107k worth of stock On the 17th of February, Jeffrey Eberwein bought around 117k shares on-market at roughly €0.91 per share. This transaction amounted to 5.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought €375k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment improved over the past week After last week's 19% share price gain to €1.01, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Energy Services industry in Europe. Total returns to shareholders of 44% over the past year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 4 highly experienced directors. Independent Director Jim Lines was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: US$0.022 (vs US$0 in 3Q 2021) Third quarter 2022 results: EPS: US$0.022 (up from US$0 in 3Q 2021). Revenue: US$5.17m (up 45% from 3Q 2021). Net income: US$638.7k (up US$644.9k from 3Q 2021). Profit margin: 12% (up from net loss in 3Q 2021). Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Energy Services industry in Europe. Announcement • Nov 12
Superior Drilling Products, Inc. Provides Earnings Guidance for the Full Year 2022 Superior Drilling Products, Inc. provided earnings guidance for the full year 2022. For the year, company expects revenue of $22 million to $24 million, Without the $3.8 million DNR fleet sale, expected 2022 revenue would be between $18 million and $20 million. Announcement • Nov 01
Superior Drilling Products, Inc. to Report Q3, 2022 Results on Nov 11, 2022 Superior Drilling Products, Inc. announced that they will report Q3, 2022 results at 9:30 AM, US Eastern Standard Time on Nov 11, 2022 Announcement • Oct 13
Superior Drilling Products, Inc. Provides Earnings Guidance for the Third Quarter and Full Year 2022 Superior Drilling Products, Inc. provided earnings guidance for the third quarter and full year 2022. For the quarter, the company expects revenue to be approximately $4.8 million to $5.2 million.For the year, the company expects revenue to be $22 million to $25 million. Recent Insider Transactions • Sep 10
Insider recently bought €180k worth of stock On the 6th of September, Jeffrey Eberwein bought around 200k shares on-market at roughly €0.90 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Aug 14
Second quarter 2022 earnings released: US$0.002 loss per share (vs US$0.003 loss in 2Q 2021) Second quarter 2022 results: US$0.002 loss per share (up from US$0.003 loss in 2Q 2021). Revenue: US$4.54m (up 34% from 2Q 2021). Net loss: US$56.5k (loss narrowed 15% from 2Q 2021). Over the next year, revenue is forecast to grow 53%, compared to a 6.6% growth forecast for the industry in Germany. Announcement • Aug 13
Superior Drilling Products, Inc. Provides Revenue Guidance for the Third Quarter and Full Year 2022 Superior Drilling Products, Inc. provided revenue guidance for the third quarter and full Year 2022. For the quarter, the company expects revenue of $8 million to $9 million. For the year, the company expects revenue in the range of $22 million to $25 million. Announcement • Jul 29
Superior Drilling Products, Inc. to Report Q2, 2022 Results on Aug 12, 2022 Superior Drilling Products, Inc. announced that they will report Q2, 2022 results Pre-Market on Aug 12, 2022 Announcement • Jul 16
Superior Drilling Products, Inc., Annual General Meeting, Aug 09, 2022 Superior Drilling Products, Inc., Annual General Meeting, Aug 09, 2022, at 12:00 US Mountain Standard Time. Location: Uintah Conference Center 313 E. 200 S Vernal Utah United States Agenda: To consider the elect two Class II members of the Board of Directors (the ‘Board’) to serve until company 2025 meeting of stockholders; to consider the ratify the appointment of Moss Adams LLP as company independent registered public accounting firm for the fiscal year ending December 31, 2022; to consider the approve an amendment (the “Plan Amendment”) to the company’s 2015 Long Term Incentive Plan (the '2015 Incentive Plan’) to increase the number of shares of common stock available under the 2015 Incentive Plan from 5,576,326 to 7,076,326; and to consider the transact any other business as may properly come before the meeting. Announcement • Jul 14
Star Equity Fund Withdrew its Nomination On July 13, 2022, Star Equity Fund announced that it withdrew its nomination of Robert G. Pearse and BaShara Boyd for election to the Company board. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improved over the past week After last week's 25% share price gain to €1.20, the stock trades at a trailing P/E ratio of 47.7x. Average trailing P/E is 11x in the Energy Services industry in Europe. Total returns to shareholders of 73% over the past year. Announcement • May 20
Superior Drilling Products, Inc. Regains Compliance with NYSE American Continued Listing Standards Superior Drilling Products, Inc. announced that it has received notification from the NYSE American LLC (“NYSE American”) that the Company has regained compliance with the continued listing standard of Sections 1003(a)(ii) and (iii) of the NYSE American Company Guide (“the “Company Guide”). At March 31, 2022, SDP had shareholders’ equity of $6.5 million, surpassing the $6.0 million requirement to meet the listing standard. As of May 19, 2022, the below compliance (“.BC”) indicator will no longer be disseminated and the Company was removed from the list of NYSE American noncompliant issuers on the NYSE American’s website. Reported Earnings • May 14
First quarter 2022 earnings released: EPS: US$0.005 (vs US$0.043 loss in 1Q 2021) First quarter 2022 results: EPS: US$0.005 (up from US$0.043 loss in 1Q 2021). Revenue: US$4.13m (up 70% from 1Q 2021). Net income: US$149.8k (up US$1.25m from 1Q 2021). Profit margin: 3.6% (up from net loss in 1Q 2021). Announcement • May 13
Star Equity Fund LP Issues an Open Letter to Superior Drilling Products Inc On May 10, 2022, Star Equity Fund LP sent a letter to Superior Drilling Products Inc and stated that it has nominated 2 candidates to the Company board. In addition, Star Equity Fund LP mentioned its recommendations to 1) declassify the board; 2) remove supermajority vote requirement; and 3) appoint an independent board chair. In addition, Star Equity Fund LP stated that it intends to file a preliminary proxy statement and urged the shareholders to vote for its board nominees and other shareholders proposal at the 2022 annual meeting of shareholders. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 4 highly experienced directors. Independent Director Jim Lines was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 12
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: US$0.02 loss per share (up from US$0.13 loss in FY 2020). Revenue: US$13.3m (up 27% from FY 2020). Net loss: US$529.8k (loss narrowed 85% from FY 2020). Revenue exceeded analyst estimates by 2.7%. Over the next year, revenue is forecast to grow 9.2%, compared to a 21% growth forecast for the industry in Germany. Announcement • Mar 06
Superior Drilling Products, Inc. to Report Q4, 2021 Results on Mar 11, 2022 Superior Drilling Products, Inc. announced that they will report Q4, 2021 results Pre-Market on Mar 11, 2022 Reported Earnings • Aug 14
Second quarter 2021 earnings released: US$0.003 loss per share (vs US$0.049 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: US$3.40m (up 68% from 2Q 2020). Net loss: US$66.8k (loss narrowed 95% from 2Q 2020). Announcement • May 28
Superior Drilling Products Receives Non-Compliance Notice from NYSE and Acceptance of Continued Listing Compliance Plan Superior Drilling Products, Inc. announced that on May 20, 2021, the Company received notification from the NYSE American LLC (the “NYSE American”) that it had not met compliance standards of Section 1003(a)(ii) as a result of stockholders’ equity falling below $4.0 million and having reported losses in its five most recent fiscal years ended December 31, 2020. Stockholders’ equity was approximately $3.3 million as of March 31, 2021. SDP has been granted a plan period through May 18, 2022 to regain compliance. SDP’s initial plan for regaining compliance was accepted by the NYSE American on January 28, 2021. SDP subsequently received approval on May 21, 2021 from the NYSE American on its first quarterly update to its plan. The Company will continue to trade under the symbol “SDPI” on the NYSE American pursuant to this plan period extension. SDP will be subject to ongoing periodic reviews, including quarterly monitoring, for compliance with the plan. Reported Earnings • May 13
First quarter 2021 earnings released: US$0.043 loss per share (vs US$0.008 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: US$2.42m (down 55% from 1Q 2020). Net loss: US$1.10m (down US$1.30m from profit in 1Q 2020). 