Independence Contract Drilling, Inc.

OTCPK:ICDI Stock Report

Market Cap: US$3.2m

Independence Contract Drilling Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ICDI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ICDI ($0.21) is trading below our estimate of fair value ($0.91)

Significantly Below Fair Value: ICDI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ICDI?

Key metric: As ICDI is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ICDI. This is calculated by dividing ICDI's market cap by their current revenue.
What is ICDI's PS Ratio?
PS Ratio0.02x
SalesUS$179.96m
Market CapUS$3.20m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ICDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
ENSV Enservco
0.1xn/aUS$2.7m
VTDR.F Vantage Drilling International
1.6xn/aUS$349.0m
CWPE CW Petroleum
0.5xn/aUS$3.9m
ENG ENGlobal
0.3xn/aUS$6.5m
ICDI Independence Contract Drilling
0.02x3.4%US$3.2m

Price-To-Sales vs Peers: ICDI is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does ICDI's PS Ratio compare vs other companies in the US Energy Services Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.9x5.5%
ICDI Independence Contract Drilling
 0.02x3.4%US$3.20m
KLXE KLX Energy Services Holdings
0.1x3.4%US$91.74m
NINE Nine Energy Service
0.09x3.0%US$48.72m
ICDI 0.0xIndustry Avg. 0.9xNo. of Companies9PS00.61.21.82.43+
9 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.9x17.7%
ICDI Independence Contract Drilling
 0.02x22.6%US$3.20m
No more companies

Price-To-Sales vs Industry: ICDI is good value based on its Price-To-Sales Ratio (0x) compared to the US Energy Services industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is ICDI'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.

ICDI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.02x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: ICDI is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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