Drilling Tools International (DTI) AI Stock Analysis

• Market Cap: $95.74M
• Dividend Yield: N/A
• Average Volume (3M): 101.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• 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: 122,182
• 30 Day Avg. Volume: 101,199
• 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: 1.62
• 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): $157.37M

• Rating: 53 Neutral
• Price Target: $2.50 ▲(2.04% Upside)

Drilling Tools International's overall stock score is driven by its financial challenges, including negative net income and cash flow issues. Despite these, the company shows positive technical indicators and strategic growth in the Eastern Hemisphere, as highlighted in the earnings call. However, the negative P/E ratio and lack of dividend yield weigh down the valuation score.

Positive Factors

Eastern Hemisphere Revenue Growth

The significant growth in the Eastern Hemisphere indicates successful market expansion and strategic positioning, which can drive long-term revenue growth and diversification.

Debt Reduction

Reducing debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations more effectively.

Leadership Continuity

Continuity in leadership with an experienced interim Chairman ensures strategic consistency and stability, which is crucial for navigating industry challenges and executing long-term plans.

Negative Factors

Net Loss

Ongoing net losses can undermine financial health, limiting the company's ability to reinvest in growth and potentially affecting investor confidence over the long term.

Market Volatility

Volatility in commodity prices and rig counts can lead to unpredictable revenue streams and pricing pressures, challenging long-term strategic planning and financial forecasting.

Revenue Decline

A sharp decline in revenue indicates potential market share loss or demand issues, which could impact long-term growth prospects and necessitate strategic adjustments.

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: Positive
• 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 Positive. The current price of 2.45 is below the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.41, and above the 200-day MA of 2.38, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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	$101.13M	8.55	11.89%	―	16.61%	-72.29%
SND	70 Outperform	$147.61M	39.37	1.61%	―	18.98%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DTI	53 Neutral	$95.74M	-15.88	-5.18%	―	7.46%	-165.76%
DWSN	44 Neutral	$51.23M	-15.90	-19.81%	―	-22.31%	39.11%
KLXE	44 Neutral	$28.18M	-0.39	―	―	-12.57%	-45.75%
NINE	39 Underperform	$14.74M	-0.38	―	―	2.59%	16.02%

Drilling Tools International Corporate Events

Drilling Tools International Appoints Interim Chairman

On December 9, 2025, Drilling Tools International appointed Mr. Wayne Prejean as interim Chairman of the Board following the passing of Mr. Thomas Hicks. Mr. Prejean, who has been with the company since 2013 and has over 45 years of industry experience, will continue to serve as President and CEO while the Board searches for a permanent Chairman. This appointment signifies a continuity in leadership and stability for the company during this transition period.

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.