AMEX:SDPI

Stock Analysis Report

Superior Drilling Products

Executive Summary

Superior Drilling Products, Inc., a drilling and completion tool technology company, innovates, designs, engineers, manufactures, sells, rents, and repairs drilling and completion tools in the United States and internationally.

Snowflake

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Superior Drilling Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SDPI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

SDPI

-1.8%

US Energy Services

0.5%

US Market


1 Year Return

-51.4%

SDPI

-31.1%

US Energy Services

12.8%

US Market

Return vs Industry: SDPI underperformed the US Energy Services industry which returned -31.1% over the past year.

Return vs Market: SDPI underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

SDPIIndustryMarket
7 Day-1.8%-1.8%0.5%
30 Day-3.4%3.9%4.3%
90 Day5.3%6.9%8.0%
1 Year-51.4%-51.4%-29.1%-31.1%15.3%12.8%
3 Year-6.9%-6.9%-51.6%-57.9%48.3%38.7%
5 Year-84.5%-84.5%-62.1%-68.0%62.6%44.5%

Price Volatility Vs. Market

How volatile is Superior Drilling Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Superior Drilling Products undervalued compared to its fair value and its price relative to the market?

3.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SDPI ($0.88) is trading above our estimate of fair value ($0.47)

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


Price To Earnings Ratio

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

PE vs Market: SDPI 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 SDPI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SDPI is overvalued based on its PB Ratio (3.3x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Superior Drilling Products forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

94.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDPI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: SDPI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SDPI's is expected to become profitable in the next 3 years.

Revenue vs Market: SDPI's revenue (12.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SDPI's revenue (12.4% 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 SDPI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Superior Drilling Products performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDPI has high quality earnings.

Growing Profit Margin: SDPI's current net profit margins (-12.3%) are higher than last year (-33.9%).


Past Earnings Growth Analysis

Earnings Trend: SDPI is unprofitable, but has reduced losses over the past 5 years at a rate of 11.8% per year.

Accelerating Growth: Unable to compare SDPI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SDPI is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-16.6%).


Return on Equity

High ROE: SDPI has a negative Return on Equity (-32.83%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Superior Drilling Products's financial position?


Financial Position Analysis

Short Term Liabilities: SDPI's short term assets ($8.3M) exceeds its short term liabilities ($7.5M)

Long Term Liabilities: SDPI's short term assets (8.3M) exceeds its long term liabilities (4.2M)


Debt to Equity History and Analysis

Debt Level: SDPI's debt to equity ratio (128.5%) is considered high

Reducing Debt: SDPI's debt to equity ratio has increased from 71.6% to 128.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SDPI's debt is not covered by short term assets (assets are 0.9x debt).


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 SDPI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SDPI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 82.1% per year.


Next Steps

Dividend

What is Superior Drilling Products's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SDPI'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 SDPI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SDPI'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 SDPI'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 Superior Drilling Products's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

G. Meier (58yo)

5.8yrs

Tenure

US$985,493

Compensation

Mr. G. Troy Meier is the Co-founder and President of Superior Drilling Products, Inc. and served as its Chief Innovator. Mr. Meier has been the Chief Executive Officer at Superior Drilling Products, Inc. s ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD985.49K) is above average for companies of similar size in the US market ($USD506.24K).

Compensation vs Earnings: G.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.7yrs

Average Tenure

57yo

Average Age

Experienced Management: SDPI's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

58yo

Average Age

Experienced Board: SDPI's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$17,40407 Dec 18
Christopher Cashion
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,841
Max PriceUS$1.61

Ownership Breakdown

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


Management Team

  • Christopher Cashion (63yo)

    Chief Financial Officer

    • Tenure: 5.7yrs
    • Compensation: US$435.06k
  • Tony Benjamin

    Human Resources Director

    • Tenure: 1yrs
  • G. Meier (58yo)

    Co-Founder

    • Tenure: 5.8yrs
    • Compensation: US$985.49k
  • Annette Meier (56yo)

    Co-Founder

    • Tenure: 5.8yrs
    • Compensation: US$835.06k
  • David Gale (43yo)

    Vice President of Operations

    • Tenure: 0yrs
    • Compensation: US$96.98k

Board Members

  • Jim Lines (58yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$158.94k
  • Michael Ronca (65yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$151.44k
  • G. Meier (58yo)

    Co-Founder

    • Tenure: 5.8yrs
    • Compensation: US$985.49k
  • Annette Meier (56yo)

    Co-Founder

    • Tenure: 5.8yrs
    • Compensation: US$835.06k

Company Information

Superior Drilling Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Superior Drilling Products, Inc.
  • Ticker: SDPI
  • Exchange: AMEX
  • Founded: 1999
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$22.189m
  • Shares outstanding: 25.10m
  • Website: https://www.sdpi.com

Number of Employees


Location

  • Superior Drilling Products, Inc.
  • 1583 South 1700 East
  • Vernal
  • Utah
  • 84078
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDPIAMEX (NYSE MKT LLC)YesCommon StockUSUSDMay 2014

Biography

Superior Drilling Products, Inc., a drilling and completion tool technology company, innovates, designs, engineers, manufactures, sells, rents, and repairs drilling and completion tools in the United State ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:24
End of Day Share Price2019/11/12 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.