Drillcon AB (DRIL) AI Stock Analysis

• Market Cap: kr181.08M
• Dividend Yield: 6.16%
• Average Volume (3M): 15.17K
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.13
• Revenue Growth: -4.44%
• EPS Growth: -68.88%
• Country: SE
• Employees: 283
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.10
• Shares Outstanding: 44,600,000
• 10 Day Avg. Volume: 17,645
• 30 Day Avg. Volume: 15,166
• PEG Ratio: -2.33
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 39.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: kr4.00 ▲(2.83% Upside)

Drillcon AB's overall stock score reflects a combination of strong gross profit margins and a stable balance sheet, offset by challenges in profitability and cash flow. The technical analysis indicates mixed signals, with limited short-term upside potential. The valuation is high, but the attractive dividend yield provides some balance.

Positive Factors

Strong Gross Margins

High gross margins indicate effective cost management, allowing Drillcon AB to maintain profitability even with revenue fluctuations.

Stable Equity Base

A stable equity base provides financial resilience, supporting long-term strategic investments and operational stability.

Advanced Technology Investment

Investment in technology enhances service offerings, potentially commanding higher fees and strengthening competitive positioning.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates potential market or operational challenges, which could impact future profitability and market share.

Rising Leverage

Increasing leverage may strain financial flexibility, potentially affecting the company's ability to invest in growth opportunities.

Declining Cash Generation

Declining cash generation limits the company's ability to fund operations and invest in future growth, impacting long-term sustainability.

Drillcon AB Business Overview & Revenue Model

Company Description

Drillcon AB (DRIL) is a Swedish company specializing in drilling and blasting services for the mining and construction sectors. The company operates primarily in Scandinavia and offers a range of core products and services including underground drilling, rock excavation, and associated services aimed at optimizing the efficiency and safety of drilling operations. Drillcon is committed to sustainable practices and incorporates advanced technologies to enhance its service delivery.

How the Company Makes Money

Drillcon AB generates revenue primarily through contracts for drilling and blasting services in the mining and construction industries. The company typically engages in both short-term and long-term projects, which provide a steady stream of income. Key revenue streams include service fees for drilling operations, project management fees, and sales of related materials and equipment. Drillcon also benefits from partnerships with mining companies, construction firms, and government projects, which can lead to recurring business opportunities. Additionally, the company invests in advanced drilling technology, allowing it to offer specialized services that can command higher fees, further enhancing its profitability.

Drillcon AB Financial Statement Overview

Summary

Drillcon AB's financial performance is mixed. Strong gross profit margins are overshadowed by declining net profit margins and negative revenue growth. The balance sheet shows moderate leverage and low returns on equity, while cash flow metrics indicate challenges in cash generation and conversion.

Income Statement

Drillcon AB's income statement shows mixed results. The TTM gross profit margin is strong at 85.08%, indicating efficient cost management. However, the net profit margin has decreased to 1.21% in the TTM, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, with a decline of 4.20% in the TTM, suggesting potential market or operational challenges. The EBIT and EBITDA margins have also declined, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio is 0.68 in the TTM, which is manageable but has increased over time, indicating rising leverage. The return on equity is low at 2.85% in the TTM, suggesting limited profitability from equity investments. However, the equity ratio remains stable, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow growth rate is negative at -37.55% in the TTM, indicating declining cash generation. The operating cash flow to net income ratio is 0.29, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is low at 6.26%, highlighting challenges in generating free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	402.18M	416.38M	472.86M	413.97M	374.07M	309.06M
Gross Profit	341.20M	25.49M	411.83M	352.63M	326.60M	279.74M
EBITDA	48.07M	60.08M	61.02M	38.79M	22.50M	45.19M
Net Income	5.60M	20.01M	20.99M	3.64M	-6.87M	13.41M
Balance Sheet
Total Assets	379.14M	362.81M	349.04M	355.30M	323.49M	290.56M
Cash, Cash Equivalents and Short-Term Investments	33.11M	51.27M	56.46M	19.60M	10.30M	48.01M
Total Debt	110.87M	92.51M	83.51M	111.15M	75.48M	28.00M
Total Liabilities	214.83M	190.71M	184.24M	209.15M	182.82M	111.81M
Stockholders Equity	164.31M	172.10M	164.80M	146.15M	140.67M	178.75M
Cash Flow
Free Cash Flow	-16.17M	5.00M	66.23M	-22.96M	-56.61M	23.43M
Operating Cash Flow	32.09M	43.14M	73.46M	1.27M	-665.00K	46.82M
Investing Cash Flow	-48.27M	-38.14M	-6.64M	-24.23M	-53.31M	-18.59M
Financing Cash Flow	17.28M	-8.64M	-27.61M	34.91M	16.27M	-12.62M

Drillcon AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.89
• 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 SE:DRIL, the sentiment is Positive. The current price of 3.89 is below the 20-day moving average (MA) of 3.97, below the 50-day MA of 3.91, and below the 200-day MA of 4.40, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:DRIL.

Drillcon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAIL	73 Outperform	kr694.78M	19.28	―	2.43%	4.27%	-3.28%
SVIK	67 Neutral	€2.21B	218.89	5.48%	0.68%	3.86%	-28.91%
NORB.B	64 Neutral	€746.95M	58.81	1.98%	―	4.24%	29.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DRIL	55 Neutral	kr181.08M	32.32	―	6.16%	-4.44%	-68.88%
ELTEL	50 Neutral	€1.33B	98.49	0.72%	―	-6.38%	―
SALT.B	39 Underperform	€977.62M	-13.99	-40.77%	―	11.85%	6.39%