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Drilling Tools International Corp. (DTI)
:DTI
RESEARCH TOOLSreports
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Drilling Tools International
(NASDAQ:DTI)
Rating:64Neutral
Price Target:
$2.50
▼( -0.79% Downside)
Drilling Tools International (DTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.61M
Dividend YieldN/A
Average Volume (3M)59.85K
Price to Earnings (P/E)26.5
Beta (1Y)1.22
Revenue Growth8.19%
EPS Growth-110.61%
CountryUS
Employees447
SectorEnergy
Sector Strength42
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding35,592,735
10 Day Avg. Volume57,647
30 Day Avg. Volume59,846
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)0.69
Price to Sales (P/S)0.00
P/FCF Ratio-5.01
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit1.51
Enterprise Value/Ebitda1.12
Forecast
1Y Price Target
$5.50Price Target Upside118.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Drilling Tools International Business Overview & Revenue Model
Company DescriptionDrilling Tools International Corp. provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole desander and filters; non-mag and steel drill collars; tubulars; flapper plugs; and well bore conditioning and fraction reduction technologies. The company also provides hole openers, roller reamers, and extended reach drilling tools; stabilizers comprising integral blade, sleeve, and welded blade string stabilizers, as well as hard facing tools; stinger valves; and sub-assemblies, which includes heat-treated steel and non-magnetic metal subs. In addition, it offers handling tools, such as elevators, brackets and bail assembly, slips, tongs, stabbing guides, and safety clamps; blowout preventors and pressure control equipment; and drilling accessories including float valve, ring gauge, tool basket, lift bail, and ditch magnet. Further, the company provides downhole inspection, well fence data automation, and compass services. Drilling Tools International Corp. was founded in 1984 and is headquartered in Houston, Texas.
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 exhibits strong revenue growth and effective cost management, leading to an impressive gross profit margin. However, challenges such as a decrease in net profit margin and persistent negative free cash flow indicate potential liquidity issues that could hinder future 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 | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 154.45M | 152.03M | 129.56M | 77.38M | Gross Profit |
| 130.34M | 96.16M | 96.55M | 53.75M | EBIT |
| 13.43M | 27.90M | 25.28M | -6.28M | EBITDA |
| 30.18M | 41.25M | 44.96M | 15.21M | Net Income Common Stockholders |
| 3.01M | 14.75M | 21.08M | 2.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 6.18M | 6.89M | 3.50M | 961.00K | Total Assets |
| 222.43M | 132.50M | 105.22M | 69.51M | Total Debt |
| 76.70M | 18.85M | 38.35M | 27.37M | Net Debt |
| 70.51M | 12.85M | 36.00M | 27.32M | Total Liabilities |
| 102.47M | 43.81M | 73.99M | 58.35M | Stockholders Equity |
| 119.96M | 88.69M | 31.22M | 11.16M |
| Cash Flow | Free Cash Flow | ||
| -16.83M | -20.42M | -9.90M | -11.88M | Operating Cash Flow |
| 6.06M | 23.33M | 13.86M | -494.00K | Investing Cash Flow |
| -53.59M | -23.86M | -2.39M | 3.34M | Financing Cash Flow |
| 47.88M | 4.29M | -9.34M | -2.87M |
Drilling Tools International Technical Analysis
Positive
2.52
Price Trends
2.28
Positive
2.73
Negative
3.19
Negative
Market Momentum
0.10
Negative
61.16
Neutral
60.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTI, the sentiment is Positive. The current price of 2.52 is above the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.28, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 60.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTI.
Drilling Tools International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $78.64M | 9.62 | 8.71% | ― | 18.03% | -39.52% | |
64 Neutral | $93.61M | 26.47 | -1.66% | ― | 8.19% | -110.61% | |
59 Neutral | $67.17M | ― | -10.48% | ― | -2.48% | 83.11% | |
57 Neutral | $7.06B | 3.07 | -3.45% | 5.82% | 0.59% | -50.58% | |
47 Neutral | $81.11M | 28.65 | -9.09% | ― | -0.94% | -353.00% | |
42 Neutral | $22.06M | ― | 73.91% | ― | -4.38% | -3.77% | |
42 Neutral | $33.00M | ― | -375.26% | ― | -16.38% | -359.80% |
* Energy Sector Average
Performance Comparison
DTI
Drilling Tools International
2.63
-3.34
-55.95%
RCON
Recon Technology
2.32
0.82
54.67%
SND
Smart Sand
1.84
-0.27
-12.80%
NCSM
Ncs Multistage Holdings
30.95
12.81
70.62%
NINE
Nine Energy Service
0.52
-1.15
-68.86%
KLXE
KLX Energy Services Holdings
1.88
-3.43
-64.60%
Drilling Tools International Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -8.36%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and EBITDA growth despite market challenges and volatility. While proactive cost reductions and share buybacks indicate management's confidence, significant challenges such as global rig count decline, goodwill impairment, and pricing pressures present ongoing concerns. The sentiment is cautious, balancing positive internal strategies against external market volatility.Q1-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Revenue grew 16% year-over-year and nearly 8% over the previous quarter. Adjusted EBITDA rose nearly 18% year-over-year.
Cost Reduction Strategy
DTI is implementing a two-phase cost reduction program, with Phase 1 expected to result in $6 million in annual savings.
Share Buyback Authorization
The Board approved a share buyback authorization of up to $10 million, viewing the current stock price as undervalued.
Eastern Hemisphere Growth Potential
Eastern Hemisphere segment, despite current challenges, is expected to grow its revenue contribution due to acquisitions and product expansions.
Negative Updates
Global Rig Count Decline
Revenue growth occurred despite a 6% global rig count decline, indicating market challenges.
Goodwill Impairment Charge
A $1.9 million non-cash goodwill write-down was recorded, affecting the Vernal, Utah bit repair operations and Deep Casing Tools.
U.S. Market Volatility
Anticipated U.S. rig count drop and volatility due to tariffs and potential recession, affecting future revenue and EBITDA guidance.
Pricing Pressure and Margin Impact
Pricing pressure and declines in activity are impacting margins, expected to continue throughout 2025.
Company Guidance
In the first quarter of 2025, Drilling Tools International reported a 16% increase in revenue compared to the previous year, with total consolidated revenue reaching $42.9 million, including $34.5 million from tool rentals and $8.3 million from product sales. Despite a 6% global decline in rig count, adjusted EBITDA increased by nearly 18% year-over-year, remaining flat sequentially at $10.8 million, while adjusted free cash flow stood at $5.7 million. The company is implementing a cost reduction strategy expected to save $6 million annually, in response to anticipated challenges such as tariff impacts and potential recession risks. Updated 2025 guidance projects full-year revenue between $145 million and $165 million, adjusted EBITDA ranging from $32 million to $42 million, gross capital expenditures of $18 million to $23 million, and adjusted free cash flow between $14 million and $19 million. The company also announced a $10 million share buyback authorization, reflecting confidence in its undervalued stock.Drilling Tools International Corporate Events
Shareholder Meetings
Drilling Tools International Holds Annual Stockholders Meeting
Neutral
May 15, 2025
On May 13, 2025, Drilling Tools International held its Annual Meeting of Stockholders, where approximately 83.56% of the voting shares were represented. The meeting resulted in the election of directors and the ratification of Weaver & Tidwell, L.L.P. as the company’s independent registered public accounting firm for fiscal year 2025, indicating continued stability and governance for stakeholders.
The most recent analyst rating on (DTI) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Drilling Tools International stock, see the DTI Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Drilling Tools International Releases Year-End Financial Results
Neutral
May 14, 2025
Drilling Tools International Corporation released its financial results for the quarter and year ending December 31, 2024, highlighting its strategic focus on customer retention and market competitiveness. The presentation includes forward-looking statements regarding market demand, operational challenges, and potential risks, emphasizing the company’s proactive approach to managing industry dynamics and stakeholder interests.
The most recent analyst rating on (DTI) stock is a Hold with a $4.80 price target. To see the full list of analyst forecasts on Drilling Tools International stock, see the DTI Stock Forecast page.
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.
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.