Drilling Tools International (DTI) AI Stock Analysis

• Market Cap: $84.48M
• Dividend Yield: N/A
• Average Volume (3M): 63.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 7.46%
• EPS Growth: -165.76%
• Country: US
• Employees: 447
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.02
• Shares Outstanding: 35,198,776
• 10 Day Avg. Volume: 99,135
• 30 Day Avg. Volume: 63,174
• PEG Ratio: -0.43
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -6.20
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 5.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.02
• Revenue Forecast (FY): $153.02M

• Rating: 54 Neutral
• Price Target: $2.50 ▲(2.04% Upside)

Drilling Tools International's overall score reflects significant financial challenges, particularly in revenue and profitability, which weigh heavily on the score. Technical analysis provides some positive momentum, while the earnings call offers an optimistic outlook with strategic growth initiatives. However, the valuation remains a concern due to negative earnings.

Positive Factors

Eastern Hemisphere Revenue Growth

Strong growth in the Eastern Hemisphere indicates successful market expansion and diversification, enhancing long-term revenue potential and reducing reliance on traditional markets.

Debt Reduction

Reducing debt and increasing cash reserves strengthens the balance sheet, improving financial stability and flexibility for future investments or downturns.

Strategic Initiatives

Timely execution of strategic initiatives enhances operational efficiency and cost savings, positioning the company for improved competitive advantage and profitability.

Negative Factors

Revenue Decline

A steep revenue decline challenges the company's ability to sustain operations and invest in growth, potentially impacting long-term market position and profitability.

Negative Cash Flow

Negative cash flow growth indicates difficulty in converting profits into cash, which can hinder the company's ability to fund operations and strategic initiatives, affecting long-term viability.

Net Loss

Reporting a net loss reflects ongoing profitability challenges, which may limit the company's capacity to reinvest in growth and compete effectively in the market.

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 generates revenue through multiple streams, primarily by selling its drilling tools and equipment to customers in the oil and gas sector. The company's core revenue comes from the direct sale of products such as drill bits and downhole tools. Additionally, DTI earns income through service contracts, providing maintenance, repair, and technical support for its products. Key partnerships with major oil companies and drilling contractors enhance DTI's market presence and contribute significantly to its earnings. Furthermore, DTI may also benefit from research and development collaborations that lead to innovative products, opening new markets and increasing its revenue potential.

Drilling Tools International Financial Statement Overview

Summary

Drilling Tools International faces significant challenges in maintaining revenue growth and profitability, with a negative net income and declining revenue in the TTM period. While the balance sheet shows improved leverage, cash flow issues persist, impacting financial flexibility.

Income Statement

Drilling Tools International shows a mixed performance in its income statement. The TTM data indicates a significant revenue decline of 78.6%, which is concerning. Gross profit margin remains strong at 76.36%, but the net profit margin is negative at -3.39%, reflecting a net loss. Historical data shows fluctuating revenue growth and profitability, with a notable decline in EBIT and EBITDA margins in the TTM period.

Balance Sheet

The company's balance sheet reveals moderate financial stability. The debt-to-equity ratio has improved to 0.51 in the TTM period, indicating reduced leverage compared to previous years. However, return on equity is negative, reflecting recent net losses. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis highlights challenges, with negative free cash flow growth and a low operating cash flow to net income ratio of 0.34 in the TTM period. The company struggles with converting profits into cash, as seen in the negative free cash flow to net income ratio. Historical data shows inconsistent free cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	160.96M	154.45M	152.03M	129.56M	77.38M
Gross Profit	119.89M	92.12M	96.16M	76.84M	53.75M
EBITDA	26.56M	30.18M	41.25M	44.96M	24.84M
Net Income	-6.32M	3.01M	14.75M	21.08M	2.10M
Balance Sheet
Total Assets	227.40M	222.43M	132.50M	105.22M	69.51M
Cash, Cash Equivalents and Short-Term Investments	4.37M	6.18M	6.89M	3.50M	961.00K
Total Debt	77.76M	76.70M	18.85M	38.35M	27.37M
Total Liabilities	106.28M	102.47M	43.81M	56.12M	58.35M
Stockholders Equity	121.11M	119.96M	88.69M	49.10M	11.16M
Cash Flow
Free Cash Flow	-8.85M	-16.83M	-20.42M	-10.69M	-11.88M
Operating Cash Flow	10.92M	6.06M	23.33M	13.99M	-494.00K
Investing Cash Flow	-20.20M	-53.59M	-23.86M	-2.53M	3.34M
Financing Cash Flow	820.00K	47.88M	4.29M	-9.34M	-2.87M

Drilling Tools International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.45
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.45 is above the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.25, and above the 200-day MA of 2.42, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 29.84 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	71 Outperform	$91.63M	7.94	11.89%	―	16.61%	-72.29%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SND	60 Neutral	$128.45M	30.16	1.61%	―	18.98%	―
DTI	54 Neutral	$84.48M	―	-5.18%	―	7.46%	-165.76%
DWSN	44 Neutral	$61.47M	―	-19.81%	―	-22.31%	39.11%
KLXE	44 Neutral	$31.22M	-0.43	―	―	-12.57%	-45.75%
NINE	41 Neutral	$20.05M	―	―	―	2.59%	16.02%

Drilling Tools International Corporate Events

Drilling Tools International’s Balanced Q3 Earnings Call

The recent earnings call from Drilling Tools International Corp. presented a balanced narrative, highlighting significant achievements in revenue growth and strategic initiatives, particularly in the Eastern Hemisphere. However, these positives were tempered by financial challenges, including a net loss and market volatility, especially in Saudi Arabia. Despite these hurdles, the company remains optimistic about future opportunities and its strategic positioning.

Drilling Tools International Corp. Reports Q3 2025 Results

Drilling Tools International Corp. (DTI) is a Houston-based oilfield services company specializing in the design, engineering, and rental of tools for horizontal and directional drilling operations in the oil and gas industry.

Drilling Tools International Reports Q3 2025 Financial Results

Drilling Tools International Corporation released its financial results for the quarter ending September 30, 2025, highlighting the company’s focus on maintaining its market position amidst challenges such as customer retention and regulatory compliance. The presentation also emphasized potential risks and uncertainties in the industry, including political and economic disruptions, and the company’s strategies to address these challenges.

The most recent analyst rating on (DTI) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Drilling Tools International stock, see the DTI Stock Forecast page.

Drilling Tools International Reports Strong Q2 Earnings Amid Challenges

Drilling Tools International Corp. (DTI) recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported strong revenue and EBITDA growth, successful cost reductions, and positive cash flow. However, these achievements were tempered by market softness in specific product lines and anticipated pricing pressures in the coming quarters. Overall, DTI’s strategic initiatives and acquisitions are performing well, providing a balanced view of current performance.

Drilling Tools International Corp. Reports Q2 2025 Results

Drilling Tools International Corp. (DTI) is a Houston-based oilfield services company specializing in the design, engineering, and rental of tools for horizontal and directional drilling operations in the oil and gas industry.

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.

The most recent analyst rating on (DTI) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Drilling Tools International stock, see the DTI Stock Forecast page.