| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
DRQ Stock Overview
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide.
Rewards
Risk Analysis
No risks detected for DRQ from our risk checks.
Dril-Quip Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$24.35 |
| 52 Week High | US$41.23 |
| 52 Week Low | US$18.17 |
| Beta | 1.18 |
| 1 Month Change | -20.84% |
| 3 Month Change | -31.79% |
| 1 Year Change | -33.20% |
| 3 Year Change | -49.27% |
| 5 Year Change | -50.10% |
| Change since IPO | 31.62% |
Recent News & Updates
A Look At The Fair Value Of Dril-Quip, Inc. (NYSE:DRQ)
In this article we are going to estimate the intrinsic value of Dril-Quip, Inc. ( NYSE:DRQ ) by taking the expected...
Shareholder Returns
| DRQ | US Energy Services | US Market | |
|---|---|---|---|
| 7D | 1.5% | -4.0% | 6.6% |
| 1Y | -33.2% | 6.5% | -18.5% |
Return vs Industry: DRQ underperformed the US Energy Services industry which returned 4.1% over the past year.
Return vs Market: DRQ underperformed the US Market which returned -20.5% over the past year.
Price Volatility
| DRQ volatility | |
|---|---|
| DRQ Average Weekly Movement | 7.3% |
| Energy Services Industry Average Movement | 9.3% |
| Market Average Movement | 8.0% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: DRQ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: DRQ's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1981 | 1,342 | Jeff Bird | https://www.dril-quip.com |
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered 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, 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; and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore.
Dril-Quip Fundamentals Summary
| DRQ fundamental statistics | |
|---|---|
| Market Cap | US$811.88m |
| Earnings (TTM) | -US$102.58m |
| Revenue (TTM) | US$324.84m |
2.6x
P/S Ratio-8.2x
P/E RatioIs DRQ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DRQ income statement (TTM) | |
|---|---|
| Revenue | US$324.84m |
| Cost of Revenue | US$249.56m |
| Gross Profit | US$75.28m |
| Other Expenses | US$177.86m |
| Earnings | -US$102.58m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -2.97 |
| Gross Margin | 23.17% |
| Net Profit Margin | -31.58% |
| Debt/Equity Ratio | 0% |
How did DRQ perform over the long term?
See historical performance and comparisonValuation
Is DRQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DRQ?
Other financial metrics that can be useful for relative valuation.
| What is DRQ's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$811.88m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.5x |
| Enterprise Value/EBITDA | -28.3x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does DRQ's PS Ratio compare to its peers?
| DRQ PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 1x |
Price-To-Sales vs Peers: DRQ is expensive based on its Price-To-Sales Ratio (2.6x) compared to the peer average (1x).
Price to Earnings Ratio vs Industry
How does DRQ's PE Ratio compare vs other companies in the U.S. Energy Services Industry?
Price-To-Sales vs Industry: DRQ is expensive based on its Price-To-Sales Ratio (2.6x) compared to the US Energy Services industry average (1x)
Price to Sales Ratio vs Fair Ratio
What is DRQ's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 2.6x |
| Fair PS Ratio | 0.9x |
Price-To-Sales vs Fair Ratio: DRQ is expensive based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).
Share Price vs Fair Value
What is the Fair Price of DRQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DRQ ($24.35) is trading below our estimate of fair value ($45.58)
Significantly Below Fair Value: DRQ is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DRQ's PEG Ratio to determine if it is good value.
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Future Growth
How is Dril-Quip forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
60.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DRQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: DRQ is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: DRQ is expected to become profitable in the next 3 years.
Revenue vs Market: DRQ's revenue (12.6% per year) is forecast to grow faster than the US market (8.3% per year).
High Growth Revenue: DRQ's revenue (12.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if DRQ's Return on Equity is forecast to be high in 3 years time
Discover growth companies
Past Performance
How has Dril-Quip performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-11.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DRQ is currently unprofitable.
Growing Profit Margin: DRQ is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: DRQ is unprofitable, and losses have increased over the past 5 years at a rate of 11.2% per year.
Accelerating Growth: Unable to compare DRQ's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DRQ is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-1.8%).
Return on Equity
High ROE: DRQ has a negative Return on Equity (-11.55%), as it is currently unprofitable.
Discover strong past performing companies
Financial Health
How is Dril-Quip's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: DRQ's short term assets ($717.4M) exceed its short term liabilities ($70.3M).
Long Term Liabilities: DRQ's short term assets ($717.4M) exceed its long term liabilities ($20.0M).
Debt to Equity History and Analysis
Debt Level: DRQ is debt free.
Reducing Debt: DRQ has not had any debt for 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 DRQ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: DRQ is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 56.1% per year.
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Dividend
What is Dril-Quip current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DRQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DRQ'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 DRQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DRQ's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as DRQ has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Jeff Bird (54 yo)
2.08yrs
Tenure
US$3,163,482
Compensation
Mr. Jeffrey J. Bird, also known as Jeff, serves as President at Dril-Quip, Inc. since May 14, 2020 and serves as its Chief Executive Officer and Director since January 01, 2022 and served as its Chief Oper...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD3.16M) is about average for companies of similar size in the US market ($USD4.08M).
Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: DRQ's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: DRQ's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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 employee growth, exchange listings and data sources
Key Information
- Name: Dril-Quip, Inc.
- Ticker: DRQ
- Exchange: NYSE
- Founded: 1981
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Implied Market Cap: US$811.884m
- Shares outstanding: 34.52m
- Website: https://www.dril-quip.com
Number of Employees
Location
- Dril-Quip, Inc.
- 6401 North Eldridge Parkway
- Houston
- Texas
- 77041
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/24 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.