NYSE:DRQ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Flawless balance sheet with moderate 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

4.2%

DRQ

5.2%

US Energy Services

-0.4%

US Market


1 Year Return

-41.4%

DRQ

-51.8%

US Energy Services

18.3%

US Market

Return vs Industry: DRQ exceeded the US Energy Services industry which returned -52% over the past year.

Return vs Market: DRQ underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

DRQIndustryMarket
7 Day4.2%5.2%-0.4%
30 Day9.3%3.5%6.6%
90 Day-26.6%-17.5%8.6%
1 Year-41.4%-41.4%-50.3%-51.8%21.0%18.3%
3 Year-38.0%-38.0%-69.3%-71.8%42.1%32.7%
5 Year-58.2%-58.2%-71.5%-76.7%85.6%64.7%

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?

0.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DRQ ($25.72) is trading above our estimate of fair value ($3.84)

Significantly Below Fair Value: DRQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DRQ is unprofitable, so we can't compare its PE Ratio to the US 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 (0.9x) compared to the US Energy Services industry average (0.5x).


Next Steps

Future Growth

How is Dril-Quip forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

72.4%

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 (2.2%).

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 (5.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: DRQ's revenue (5.3% 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 (1%).


Next Steps

Past Performance

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

-61.7%

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 61.7% 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 (-59.5%).


Return on Equity

High ROE: DRQ has a negative Return on Equity (-2.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dril-Quip's financial position?


Financial Position Analysis

Short Term Liabilities: DRQ's short term assets ($848.2M) exceed its short term liabilities ($113.7M).

Long Term Liabilities: DRQ's short term assets ($848.2M) exceed its long term liabilities ($18.6M).


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


Next Steps

Dividend

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


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.


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

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

4.7yrs

Average management tenure


CEO

Blake DeBerry (60 yo)

9yrs

Tenure

US$4,388,512

Compensation

Mr. Blake T. DeBerry has been the Chief Executive Officer of Dril-Quip, Inc. since October 2011. He served as President at Dril-Quip, Inc. since October 2011 until May 14, 2020. Mr. DeBerry served as Senio ...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD4.39M) is above average for companies of similar size in the US market ($USD2.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Blake DeBerry
CEO & Director9yrsUS$4.39m0.59%
$ 5.3m
Jeffrey Bird
President & COO0.42yrUS$2.85m0.18%
$ 1.6m
Raj Kumar
CFO & VP0.42yrUS$938.90k0.051%
$ 455.8k
James Webster
VP, General Counsel & Secretary9.67yrsUS$1.67m0.14%
$ 1.2m
Blake Holcomb
Director of Investor Relations & Corporate Planningno datano datano data

4.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DRQ's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Blake DeBerry
CEO & Director9yrsUS$4.39m0.59%
$ 5.3m
Alexander Shukis
Independent Director17.67yrsUS$246.18k0.058%
$ 521.1k
John Lovoi
Independent Chairman of the Board9yrsUS$336.13k0.13%
$ 1.2m
Terence Jupp
Independent Director7.92yrsUS$250.51k0.088%
$ 798.0k
Steven Newman
Independent Director5.17yrsUS$239.30k0.068%
$ 612.6k
Amy Schwetz
Independent Director1.08yrsUS$160.83k0.016%
$ 145.1k

8.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: DRQ's board of directors are considered experienced (8.5 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: DRQ
  • Exchange: NYSE
  • Founded: 1981
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$902.616m
  • Shares outstanding: 35.09m
  • 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 Analysis2020/10/25 23:50
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.