Drilling Tools International (DTI) AI Stock Analysis

• Market Cap: $69.54M
• Dividend Yield: N/A
• Average Volume (3M): 40.80K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.11
• Revenue Growth: 9.74%
• EPS Growth: -132.61%
• Country: US
• Employees: 447
• Sector: Energy
• Sector Strength: 66
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.02
• Shares Outstanding: 35,661,297
• 10 Day Avg. Volume: 56,760
• 30 Day Avg. Volume: 40,803
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.59
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 6.80
• 1Y Price Target: $2.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $2.00 ▲(2.56% Upside)

Drilling Tools International's overall score reflects a mixed financial performance with strong revenue growth but declining profitability and liquidity concerns. The earnings call provided positive insights into operational execution and strategic initiatives, but technical indicators and valuation metrics suggest caution due to bearish trends and negative earnings.

Drilling Tools International Business Overview & Revenue Model

Company Description

Drilling 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 Money

DTI makes money by manufacturing and selling a wide array of drilling tools and equipment to oil and gas companies. Their revenue model is primarily based on direct sales of their high-performance products, including drill bits, stabilizers, and other downhole tools. Additionally, DTI generates significant income through rental services, offering their tools to operators who prefer not to purchase equipment outright. Maintenance and repair services provide another revenue stream, ensuring clients' equipment remains operational and efficient. Key partnerships with major oil and gas firms and strategic alliances with other industry players further bolster DTI's market presence and contribute to its earnings.

Drilling Tools International Financial Statement Overview

Summary

Drilling Tools International shows strong revenue growth and a high gross profit margin, but faces challenges with declining profitability and negative net income. Improved leverage is a positive, but negative free cash flow and liquidity risks are concerning.

Income Statement

Drilling Tools International shows a mixed performance in its income statement. The company has experienced strong revenue growth, particularly in the TTM period, with a 17.7% increase. However, profitability metrics such as the net profit margin have declined, turning negative in the TTM period. The gross profit margin remains robust at 76.8%, indicating efficient cost management. Despite these strengths, the negative net income and declining EBIT margin highlight challenges in maintaining profitability.

Balance Sheet

The balance sheet of Drilling Tools International reflects a moderate financial position. The debt-to-equity ratio has improved over time, decreasing to 0.51 in the TTM period, suggesting better leverage management. However, the return on equity has turned negative, indicating inefficiencies in generating returns for shareholders. The equity ratio remains stable, showing a solid capital structure. Overall, the balance sheet shows stability but highlights concerns regarding shareholder returns.

Cash Flow

Cash flow analysis reveals challenges for Drilling Tools International. The company has struggled with negative free cash flow, which worsened in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is negative, reflecting cash flow constraints. While operating cash flow has shown some growth, the overall cash flow position indicates potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	162.24M	154.45M	152.03M	129.56M	77.38M
Gross Profit	124.61M	92.12M	96.16M	76.84M	53.75M
EBITDA	26.51M	30.18M	41.25M	44.96M	24.84M
Net Income	-4.55M	3.01M	14.75M	21.08M	2.10M
Balance Sheet
Total Assets	230.28M	222.43M	132.50M	105.22M	69.51M
Cash, Cash Equivalents and Short-Term Investments	1.15M	6.18M	6.89M	3.50M	961.00K
Total Debt	62.64M	76.70M	18.85M	38.35M	27.37M
Total Liabilities	107.76M	102.47M	43.81M	73.99M	58.35M
Stockholders Equity	122.52M	119.96M	88.69M	49.10M	11.16M
Cash Flow
Free Cash Flow	-12.89M	-16.83M	-20.42M	-9.90M	-11.88M
Operating Cash Flow	6.29M	6.06M	23.33M	13.86M	-494.00K
Investing Cash Flow	-39.00M	-53.59M	-23.86M	-2.53M	3.34M
Financing Cash Flow	26.84M	47.88M	4.29M	-9.34M	-2.87M

Drilling Tools International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.95 is below the 20-day moving average (MA) of 1.97, below the 50-day MA of 2.29, and below the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	79 Outperform	$112.13M	8.90	12.76%	―	19.15%	-71.62%
Sector *	66 Neutral	$15.26B	7.30	3.22%	5.27%	4.16%	-60.82%
DTI	57 Neutral	$69.54M	26.47	-4.23%	―	9.74%	-132.61%
RCON	55 Neutral	$60.03M	―	-10.48%	―	-2.48%	83.11%
SND	54 Neutral	$84.94M	107.14	0.33%	―	3.43%	-36.73%
KLXE	44 Neutral	$37.64M	―	-375.26%	―	-13.29%	-106.14%
NINE	41 Neutral	$29.22M	―	73.91%	―	3.23%	31.76%

Drilling Tools International Corporate Events

Drilling Tools International Q2 2025 Financial Results Released

Drilling Tools International Corporation released its financial results for the three months ended June 30, 2025, highlighting various forward-looking statements regarding its operations and market positioning. The presentation emphasizes DTI’s strategic focus on customer retention, skilled workforce management, and navigating industry-specific risks, which are crucial for sustaining its competitive position and operational efficiency.