Drilling Tools International (DTI) AI Stock Analysis

• Market Cap: $105.00M
• Dividend Yield: N/A
• Average Volume (3M): 119.03K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.05
• Revenue Growth: 8.19%
• EPS Growth: -110.61%
• Country: US
• Employees: 447
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.02
• Shares Outstanding: 35,592,735
• 10 Day Avg. Volume: 233,885
• 30 Day Avg. Volume: 119,032
• PEG Ratio: -0.02
• Price to Book (P/B): 8.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.78
• Enterprise Value/Market Cap: 2.96
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 2.56
• 1Y Price Target: $5.50
• Price Target Upside: 86.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $3.00 ▲(1.69%Upside)

DTI's overall score reflects a balance of strong operational performance and strategic growth initiatives against profitability challenges and market volatility. The earnings call provided positive guidance and internal strategies that bolster confidence, while technical indicators and valuation metrics highlight potential risks.

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 gross margins and manageable debt levels, indicating solid operational performance and financial health. However, the company faces profitability challenges with a negative net profit margin and declining return on equity. Cash flow management remains a critical area for improvement, with reliance on financing activities. Overall, while DTI demonstrates resilience in core operations, strategic actions are necessary to enhance profitability and cash flow sustainability.

Income Statement

Drilling Tools International (DTI) has shown a strong gross profit margin of 71.4% in the TTM, indicating excellent cost management in production. However, the company experienced a negative net profit margin of -1.1% TTM, a significant drop from 2.0% in the previous year, driven by a net loss. The revenue growth rate of 3.8% TTM suggests moderate expansion. EBIT and EBITDA margins at 7.2% and 14.5% respectively highlight operational efficiency despite declining from the previous year.

Balance Sheet

DTI maintains a healthy equity ratio of 52.6% TTM, showcasing a solid financial structure. The debt-to-equity ratio stands at 0.49, reflecting a manageable level of leverage. However, return on equity has turned negative to -1.5% TTM from 2.5% last year, indicating a decline in profitability relative to shareholder equity.

Cash Flow

The company reported a negative free cash flow, which decreased slightly to -$16.54 million TTM. Although the operating cash flow to net income ratio is negative due to net losses, it remains positive at 2.9. The free cash flow to net income ratio is not meaningful due to negative free cash flow and net income. Cash flow stability is a concern, with financing activities being a major cash inflow source.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	160.35M	154.45M	152.03M	129.56M	77.38M
Gross Profit	114.45M	130.34M	96.16M	76.84M	53.75M
EBITDA	23.28M	30.18M	41.25M	44.96M	15.21M
Net Income	-1.78M	3.01M	14.75M	21.08M	2.10M
Balance Sheet
Total Assets	233.17M	222.43M	132.50M	105.22M	69.51M
Cash, Cash Equivalents and Short-Term Investments	2.79M	6.18M	6.89M	3.50M	961.00K
Total Debt	59.81M	76.70M	18.85M	38.35M	27.37M
Total Liabilities	110.47M	102.47M	43.81M	73.99M	58.35M
Stockholders Equity	122.70M	119.96M	88.69M	31.22M	11.16M
Cash Flow
Free Cash Flow	-16.54M	-16.83M	-20.42M	-9.90M	-11.88M
Operating Cash Flow	5.18M	6.06M	23.33M	13.86M	-494.00K
Investing Cash Flow	-41.28M	-53.59M	-23.86M	-2.39M	3.34M
Financing Cash Flow	24.67M	47.88M	4.29M	-9.34M	-2.87M

Drilling Tools International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 2.95 is below the 20-day moving average (MA) of 3.13, above the 50-day MA of 2.69, and below the 200-day MA of 3.06, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.28 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	74 Outperform	$76.30M	9.33	8.71%	―	18.03%	-39.52%
DTI	67 Neutral	$105.00M	26.47	-1.66%	―	8.19%	-110.61%
SND	57 Neutral	$86.84M	28.65	-9.09%	―	-0.94%	-353.00%
RCON	55 Neutral	$74.73M	―	-10.48%	―	-2.48%	83.11%
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%
NINE	47 Neutral	$35.67M	―	73.91%	―	-4.38%	-3.77%
KLXE	47 Neutral	$34.23M	―	-375.26%	―	-16.38%	-359.80%

Drilling Tools International Corporate Events

Drilling Tools International Holds Annual Stockholders Meeting

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.

Drilling Tools International Releases Year-End Financial Results

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.