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Drilling Tools International (DTI)
NASDAQ:DTI
RESEARCH TOOLSreports
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Drilling Tools International
(NASDAQ:DTI)
63Neutral
Drilling Tools International (DTI) vs. S&P 500 (SPY)
Market Cap
$91.12M
Dividend YieldN/A
Average Volume (3M)57.11K
Price to Earnings (P/E)24.6
Beta (1Y)0.40
Revenue Growth38.85%
EPS Growth-68.54%
CountryUS
Employees447
SectorEnergy
Sector Strength86
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding35,592,735
10 Day Avg. Volume79,929
30 Day Avg. Volume57,113
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)N/A
Price to Sales (P/S)0.61
Price to Cash Flow (P/CF)-6.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.50Price Target Upside114.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Drilling Tools International Business Overview & Revenue Model
Company DescriptionDrilling Tools International (DTI) is a leading provider in the oil and gas sector, specializing in the manufacturing and supply of high-performance drilling tools and services. The company offers a wide range of products, including downhole equipment, reamers, stabilizers, and other essential tools used in the drilling process. With a focus on innovation and quality, DTI serves major oil and gas companies worldwide, providing the technology needed to enhance drilling efficiency and safety.
How the Company Makes MoneyDrilling Tools International generates revenue primarily through the sale and rental of its drilling tools and equipment. The company provides customized solutions to meet the specific needs of its clients, which include major oil and gas operators and drilling contractors. In addition to product sales, DTI offers rental services, allowing customers to access high-quality tools without the capital investment required for purchase. This rental model provides a steady stream of recurring revenue. Furthermore, DTI may engage in strategic partnerships and collaborations with key players in the industry to expand its market reach and enhance its product offerings, contributing further to its revenue streams.
Drilling Tools International Financial Statement Overview
Summary
Drilling Tools International shows solid revenue growth and efficient cost management, contributing to a strong gross profit margin. The balance sheet reflects a stable financial structure with manageable leverage. However, declining net profitability and persistent negative free cash flow pose risks to future liquidity and growth.Income Statement
Drilling Tools International has demonstrated strong revenue growth with a 2.46% increase from 2023 to 2024. The gross profit margin improved significantly to 84.39%, indicating efficient cost management. However, the net profit margin decreased to 1.95% due to higher operating expenses, impacting overall profitability.80
Positive
Balance Sheet
The company maintains a healthy equity position with an equity ratio of 53.93%, suggesting financial stability. The debt-to-equity ratio increased to 0.48, reflecting higher leverage but still within reasonable limits. Return on equity decreased to 2.51%, showing reduced profitability relative to equity.75
Positive
Cash Flow
Drilling Tools International faces challenges with negative free cash flow, which improved slightly by 17.56% from 2023 to 2024. The operating cash flow to net income ratio is 2.01, indicating strong cash generation relative to reported earnings. However, continuous negative free cash flow indicates potential liquidity pressures.60
Neutral
| Breakdown | ||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 149.79M | 154.45M | 152.03M | 129.56M | 77.38M | Gross Profit |
| 90.83M | 130.34M | 96.16M | 96.55M | 53.75M | EBIT |
| 17.03M | 13.43M | 27.90M | 25.28M | -6.28M | EBITDA |
| 31.93M | 23.51M | 41.25M | 44.96M | 15.21M | Net Income Common Stockholders |
| 8.18M | 3.01M | 14.75M | 21.08M | 2.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.36M | 6.18M | 6.89M | 3.50M | 961.00K | Total Assets |
| 210.45M | 222.43M | 132.50M | 105.22M | 69.51M | Total Debt |
| 0.00 | 57.02M | 18.85M | 38.35M | 27.37M | Net Debt |
| -1.36M | 50.84M | 12.85M | 36.00M | 27.32M | Total Liabilities |
| 250.00K | 102.47M | 43.81M | 73.99M | 58.35M | Stockholders Equity |
| 210.20M | 119.96M | 88.69M | 31.22M | 11.16M |
| Cash Flow | Free Cash Flow | |||
| -10.76M | -16.83M | -20.42M | -9.90M | -11.88M | Operating Cash Flow |
| 15.89M | 6.06M | 23.33M | 13.86M | -494.00K | Investing Cash Flow |
| -49.97M | -53.59M | -23.86M | -2.39M | 3.34M | Financing Cash Flow |
| 43.04M | 47.88M | 4.29M | -9.34M | -2.87M |
Drilling Tools International Technical Analysis
Negative
2.56
Price Trends
3.05
Negative
3.23
Negative
3.83
Negative
Market Momentum
-0.12
Positive
35.89
Neutral
35.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTI, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.81, below the 50-day MA of 3.05, and below the 200-day MA of 3.83, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.89 is Neutral, neither overbought nor oversold. The STOCH value of 35.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTI.
Drilling Tools International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $42.65B | 14.48 | 18.47% | 2.00% | 9.10% | 55.56% | |
78 Outperform | $5.71B | 9.35 | 10.12% | 1.83% | 3.42% | -35.98% | |
77 Outperform | $57.25B | 13.65 | 21.59% | 2.64% | 9.58% | 6.53% | |
75 Outperform | $21.76B | 8.85 | 25.14% | 2.71% | -0.32% | -3.41% | |
63 Neutral | $91.12M | 24.64 | 2.89% | ― | 38.85% | -68.54% | |
58 Neutral | $9.13B | 5.45 | -5.93% | 7.45% | -0.05% | -64.91% | |
57 Neutral | $323.11M | ― | -1.62% | ― | -11.47% | -187.17% |
* Energy Sector Average
Performance Comparison
DTI
Drilling Tools International
2.56
-0.64
-20.00%
BKR
Baker Hughes Company
43.08
10.40
31.82%
HAL
Halliburton
25.07
-13.95
-35.75%
NOV
NOV
14.99
-4.34
-22.45%
OIS
Oil States International
5.21
-0.96
-15.56%
SLB
Schlumberger
41.88
-11.92
-22.16%
Drilling Tools International Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -5.54% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable achievements in revenue growth, successful acquisitions, and safety improvements. However, challenges such as rig count softness, a fourth-quarter net loss, and pricing pressures impacted overall performance. The company's resilience and strategic initiatives in M&A were highlighted as positive aspects.Highlights
Strong Revenue and Cash Flow Growth
Generated 2024 revenue growth at the high end of guidance with total revenue of $154.4 million. Adjusted net income was above the high end of guidance, more than doubling prior year adjusted free cash flow to $17.2 million.
Successful M&A Activity
Acquired three companies in 2024 and a fourth in early 2025, focusing on international expansion and technology ownership. These acquisitions aim to enhance technological capabilities and expand geographical footprint.
Safety Improvement
Achieved a 6.5% year-over-year improvement in safety, highlighting employee commitment to safety protocols and training.
Resilient Business Model
Fourth quarter revenue increased by 13% year-over-year despite a 4% global rig count decline, demonstrating business model resilience.
Lowlights
Rig Count Softness
Continued rig count softness in US land, US Gulf, and Middle Eastern markets, impacting revenue growth.
Fourth Quarter Net Loss
Reported a net loss of $1.3 million in the fourth quarter of 2024, with diluted EPS showing a loss of $0.04 per share.
Pricing Pressure and Margin Impact
Pricing pressure and changes in product mix related to acquisitions affected gross profit margins. SG&A expenses increased due to acquisitions and public company costs.
Company Guidance
During the 2024 fiscal year-end and fourth quarter earnings call for Drilling Tools International, the company provided guidance for 2025, projecting revenue between $163 million to $183 million and adjusted EBITDA in the range of $40 million to $50 million. The company also anticipates gross capital expenditures of $23 million to $29 million and adjusted free cash flow of $17 million to $21 million for the year. Drilling Tools International highlighted its strong 2024 performance with consolidated revenue of $154.4 million, adjusted net income of $10.1 million, and adjusted EBITDA of $40.1 million. The company emphasized its strategic expansions, including the acquisition of four companies, and its commitment to integrating best practices to enhance operational efficiency. Despite some market challenges, including rig count softness and pricing pressure, DTI remains optimistic about growth opportunities, particularly in international markets, and plans to report results in two new segments, Eastern Hemisphere and Western Hemisphere, effective January 1, 2025.Drilling Tools International Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Drilling Tools International Releases 2024 Financial Results
Neutral
Mar 17, 2025
Drilling Tools International released its financial results for the quarter and full year ending December 31, 2024, highlighting the company’s strategic focus on customer retention and market competitiveness. The presentation also addressed potential risks and uncertainties in the industry, emphasizing the importance of regulatory compliance and the challenges of operating in a volatile market.
M&A TransactionsBusiness Operations and Strategy
Drilling Tools International Acquires Titan Tools Services
Positive
Jan 2, 2025
Drilling Tools International Corp. has completed the acquisition of UK-based Titan Tools Services Ltd., enhancing its product offerings and strengthening its presence in key markets such as the North Sea, Europe, and Africa. This acquisition is expected to expand DTI’s technological capabilities and customer relationships, accelerating market adoption of innovative tools while integrating Titan into DTI’s operations to leverage synergies and ensure business continuity.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.