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DRQ

Dril-Quip NYSE:DRQ Stock Report

Last Price

US$24.35

Market Cap

US$811.9m

7D

1.5%

1Y

-33.2%

Updated

24 Jun, 2022

Data

Company Financials +
DRQ fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health6/6
Dividends0/6

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

Trading at 46.6% below our estimate of its fair value

Earnings are forecast to grow 60.79% per year

Risk Analysis

No risks detected for DRQ from our risk checks.

Dril-Quip Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Dril-Quip
Historical stock prices
Current Share PriceUS$24.35
52 Week HighUS$41.23
52 Week LowUS$18.17
Beta1.18
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 IPO31.62%

Recent News & Updates

Jun 13
A Look At The Fair Value Of Dril-Quip, Inc. (NYSE:DRQ)

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

DRQUS Energy ServicesUS Market
7D1.5%-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

Is DRQ's price volatile compared to industry and market?
DRQ volatility
DRQ Average Weekly Movement7.3%
Energy Services Industry Average Movement9.3%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
19811,342Jeff Birdhttps://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

How do Dril-Quip's earnings and revenue compare to its market cap?
DRQ fundamental statistics
Market CapUS$811.88m
Earnings (TTM)-US$102.58m
Revenue (TTM)US$324.84m

2.6x

P/S Ratio

-8.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRQ income statement (TTM)
RevenueUS$324.84m
Cost of RevenueUS$249.56m
Gross ProfitUS$75.28m
Other ExpensesUS$177.86m
Earnings-US$102.58m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.97
Gross Margin23.17%
Net Profit Margin-31.58%
Debt/Equity Ratio0%

How did DRQ perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DRQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation 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.

DRQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA-28.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does DRQ's PS Ratio compare to its peers?

DRQ PS Ratio vs Peers
The above table shows the PS ratio for DRQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1x

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.

DRQ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ratio0.9x

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

4/6

Future 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

0/6

Past 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

6/6

Financial 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

0/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.