NYSE:DRQ

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

Fundamentals

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: DRQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

DRQ

-2.6%

US Energy Services

0.4%

US Market


1 Year Return

11.0%

DRQ

-33.2%

US Energy Services

13.1%

US Market

Return vs Industry: DRQ exceeded the US Energy Services industry which returned -33.2% over the past year.

Return vs Market: DRQ underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

DRQIndustryMarket
7 Day-0.3%-2.6%0.4%
30 Day-12.4%1.6%4.0%
90 Day-2.6%4.3%7.4%
1 Year11.0%11.0%-31.3%-33.2%15.6%13.1%
3 Year-17.0%-17.0%-52.5%-58.8%48.2%38.6%
5 Year-50.0%-50.0%-63.1%-68.6%62.6%44.6%

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

Valuation

Is Dril-Quip undervalued compared to its fair value and its price relative to the market?

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRQ ($44.43) is trading below our estimate of fair value ($61.43)

Significantly Below Fair Value: DRQ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DRQ is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: DRQ is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRQ is overvalued based on its PB Ratio (1.5x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

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

89.8%

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 (2.7%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: DRQ's revenue (8.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DRQ's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRQ's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

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

-64.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRQ has large one-off items impacting its financial results.

Growing Profit Margin: DRQ's current net profit margins (-20%) are higher than last year (-23.3%).


Past Earnings Growth Analysis

Earnings Trend: DRQ is unprofitable, and losses have increased over the past 5 years at a rate of -64% 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 (-16.6%).


Return on Equity

High ROE: DRQ has a negative Return on Equity (-7.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dril-Quip's financial position?


Financial Position Analysis

Short Term Liabilities: DRQ's short term assets ($878.7M) exceeds its short term liabilities ($96.5M)

Long Term Liabilities: DRQ's short term assets (878.7M) exceeds its long term liabilities (16.4M)


Debt to Equity History and Analysis

Debt Level: DRQ is debt free.

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

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if DRQ'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

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate DRQ'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 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.


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 DRQ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Dril-Quip's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Blake DeBerry (59yo)

8.1yrs

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 ($USD4.10M) is about average for companies of similar size in the US market ($USD3.98M).

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


Management Age and Tenure

5.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: DRQ's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DRQ's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: DRQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$189,21508 Nov 19
Blake DeBerry
EntityIndividual
Role
Chief Executive Officer
President
Shares4,233
Max PriceUS$44.70
SellUS$5,36908 Nov 19
Raj Kumar
EntityIndividual
Role
Chief Accounting Officer
VP of Finance & Chief Accounting Officer
Shares120
Max PriceUS$44.74
SellUS$62,26408 Nov 19
James Webster
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares1,392
Max PriceUS$44.73
SellUS$16,55808 Nov 19
Jeffrey Bird
EntityIndividual
Role
Chief Financial Officer
Senior VP of Production Operations & CFO
Shares370
Max PriceUS$44.75
SellUS$496,44930 Oct 19
Jeffrey Bird
EntityIndividual
Role
Chief Financial Officer
Senior VP of Production Operations & CFO
Shares11,363
Max PriceUS$43.69

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Blake DeBerry (59yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$4.10m
  • James Webster (49yo)

    VP, General Counsel & Secretary

    • Tenure: 8.8yrs
    • Compensation: US$1.11m
  • Jeff Bird (52yo)

    Senior VP of Production Operations & CFO

    • Tenure: 2.7yrs
    • Compensation: US$1.40m
  • Raj Kumar (46yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 0.8yrs

Board Members

  • Pete Shukis (74yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$218.02k
  • John Lovoi (58yo)

    Chairman of the Board

    • Tenure: 8.1yrs
    • Compensation: US$306.66k
  • Terence Jupp (60yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$222.39k
  • Steven Newman (54yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$209.93k
  • Amy Schwetz (44yo)

    Director

    • Tenure: 0.2yrs
  • Blake DeBerry (59yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$4.10m

Company Information

Dril-Quip, Inc.'s company bio, 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
  • Market Cap: US$1.608b
  • Shares outstanding: 36.18m
  • 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

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 servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:35
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.