Superior Drilling Products (NYSEAM:SDPI) - Share price, News & Analysis

SDPI fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

SDPI Stock Overview

Rewards

Became profitable this year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($29M)

Superior Drilling Products Competitors

Schlumberger

NYSE:SLB

US$59.6b

NOV

NYSE:NOV

US$7.2b

Price History & Performance

Summary of all time highs, changes and price drops for Superior Drilling Products
Historical stock prices
Current Share Price	US$1.04
52 Week High	US$2.38
52 Week Low	US$0.65
Beta	0.057
1 Month Change	0%
3 Month Change	15.56%
1 Year Change	30.00%
3 Year Change	4.41%
5 Year Change	15.56%
Change since IPO	-76.84%

Shareholder Returns

	SDPI	US Energy Services	US Market
7D	3.0%	12.0%	2.7%
1Y	30.0%	32.6%	-8.1%

Return vs Industry: SDPI exceeded the US Energy Services industry which returned 27.1% over the past year.

Return vs Market: SDPI exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is SDPI's price volatile compared to industry and market?
SDPI volatility
SDPI Average Weekly Movement	16.4%
Energy Services Industry Average Movement	9.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SDPI is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: SDPI's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
1993	58	G. Meier	https://www.sdpi.com

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, Canada, the Middle East, and Eastern Europe. Its drilling solutions include Drill-N-Ream, a dual-section wellbore conditioning tool; Strider, a drill string oscillation system technology; and V-Stream, an advanced conditioning system. The company also engages in the manufacture and refurbishment of polycrystalline diamond compact drill bits for an oil field services company.

Superior Drilling Products Fundamentals Summary

How do Superior Drilling Products's earnings and revenue compare to its market cap?
SDPI fundamental statistics
Market Cap	US$29.36m
Earnings (TTM)	US$721.83k
Revenue (TTM)	US$15.04m

40.7x

P/E Ratio

2.0x

P/S Ratio

Is SDPI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SDPI income statement (TTM)
Revenue	US$15.04m
Cost of Revenue	US$6.21m
Gross Profit	US$8.83m
Other Expenses	US$8.11m
Earnings	US$721.83k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.026
Gross Margin	58.71%
Net Profit Margin	4.80%
Debt/Equity Ratio	36.0%

How did SDPI perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

40.69x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SDPI ($1.04) is trading above our estimate of fair value ($0.07)

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

Price To Earnings Ratio

PE vs Industry: SDPI is poor value based on its PE Ratio (40.7x) compared to the US Energy Services industry average (31.8x).

PE vs Market: SDPI is poor value based on its PE Ratio (40.7x) compared to the US market (15.5x).

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 (4.5x) compared to the US Energy Services industry average (1.4x).

Future Growth

How is Superior Drilling Products forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

45.1%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Superior Drilling Products has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

29.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SDPI has a high level of non-cash earnings.

Growing Profit Margin: SDPI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SDPI has become profitable over the past 5 years, growing earnings by 29.3% per year.

Accelerating Growth: SDPI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SDPI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-1.8%).

Return on Equity

High ROE: SDPI's Return on Equity (11.1%) is considered low.

Financial Health

How is Superior Drilling Products's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SDPI's short term assets ($7.3M) exceed its short term liabilities ($4.3M).

Long Term Liabilities: SDPI's short term assets ($7.3M) exceed its long term liabilities ($4.3M).

Debt to Equity History and Analysis

Debt Level: SDPI has more cash than its total debt.

Reducing Debt: SDPI's debt to equity ratio has reduced from 99.7% to 36% over the past 5 years.

Debt Coverage: SDPI's debt is well covered by operating cash flow (60%).

Interest Coverage: SDPI's interest payments on its debt are not well covered by EBIT (1.3x coverage).

Balance Sheet

Dividend

What is Superior Drilling Products's 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 SDPI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SDPI'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 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.

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 SDPI has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Energy industry.

Management

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

8.3yrs

Average management tenure

CEO

G. Meier (60 yo)

8.33yrs

Tenure

US$1,450,178

Compensation

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

CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD1.45M) is above average for companies of similar size in the US market ($USD772.03K).

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

Leadership Team

Experienced Management: SDPI's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: SDPI's board of directors are considered experienced (8.3 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31