AKITA Drilling Ltd (AKT.A) AI Stock Analysis

• Market Cap: C$80.31M
• Dividend Yield: N/A
• Average Volume (3M): 29.00K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.95
• Revenue Growth: 24.94%
• EPS Growth: 956.65%
• Country: CA
• Employees: 1,064
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.04
• Shares Outstanding: 37,996,040
• 10 Day Avg. Volume: 20,947
• 30 Day Avg. Volume: 28,997
• PEG Ratio: -0.16
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 28.62
• 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: C$2.50
• Price Target Upside: 27.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$2.00 ▲(2.04% Upside)

AKITA Drilling Ltd's overall stock score is driven by strong financial performance and attractive valuation, indicating potential for growth. However, technical indicators suggest bearish momentum, which could pose short-term challenges. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong demand for AKITA's services, enhancing its market position and supporting long-term business expansion.

Balance Sheet Health

A lower debt-to-equity ratio enhances financial stability and flexibility, allowing AKITA to invest in growth opportunities and weather industry cycles.

Cash Flow Generation

Strong cash flow generation supports operational needs and strategic investments, ensuring AKITA can sustain growth and manage financial obligations.

Negative Factors

Historical Volatility

Past fluctuations in financial performance could indicate potential risks in maintaining consistent growth and profitability, affecting long-term stability.

Profit Margin Risks

Inconsistent profit margins may impact AKITA's ability to sustain profitability, especially if market conditions become less favorable.

High Leverage Concerns

Although improved, past high leverage levels could pose risks if market conditions deteriorate, potentially straining financial resources.

AKITA Drilling Ltd Business Overview & Revenue Model

Company Description

AKITA Drilling Ltd. (AKT.A) is a leading provider of drilling services in the oil and gas sector, headquartered in Calgary, Alberta. The company specializes in onshore and offshore drilling operations, primarily serving clients in North America. With a fleet of modern drilling rigs and a commitment to safety and efficiency, AKITA Drilling delivers high-quality services to exploration and production companies. Its core offerings include contract drilling services, rig management, and related support services tailored to meet the demands of the energy industry.

How the Company Makes Money

AKITA Drilling generates revenue primarily through contract drilling services, where it charges clients for the use of its drilling rigs and associated equipment on a per-day basis. The company typically enters into multi-year contracts with major oil and gas operators, ensuring stable revenue streams. Additionally, AKITA may earn income from ancillary services such as rig mobilization and demobilization, maintenance, and other operational support. Strategic partnerships with exploration and production companies further bolster its revenue, as these collaborations often lead to long-term contracts and repeat business. Market conditions, such as oil prices and demand for drilling rigs, significantly influence the company's earnings, with higher energy prices generally leading to increased drilling activity and revenue growth.

AKITA Drilling Ltd Financial Statement Overview

Summary

AKITA Drilling Ltd has shown a positive trend in revenue growth and improved profitability with stable EBIT and EBITDA margins. The balance sheet is healthier with a lower debt-to-equity ratio and strong equity ratio. Cash flow has significantly improved, though historical volatility in financial metrics suggests caution.

Income Statement

AKITA Drilling Ltd has shown a positive trend in revenue growth, with a 5.3% increase in the TTM period. The company has improved its gross profit margin to 13.6% and net profit margin to 8.9%, indicating enhanced profitability. EBIT and EBITDA margins are stable, reflecting efficient operations. However, past volatility in revenue and margins suggests potential risks.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.30, indicating a healthier balance between debt and equity. Return on equity is at 11.2%, showing good profitability relative to shareholder investments. The equity ratio stands at 70.2%, suggesting a strong capital structure. Historical high leverage remains a concern.

Cash Flow

AKITA Drilling Ltd has demonstrated significant improvement in free cash flow, with a growth rate of 159.6% in the TTM period. The operating cash flow to net income ratio is 1.08, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.12, showing positive cash flow management. Past fluctuations in cash flow metrics warrant caution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	223.34M	193.32M	225.48M	201.00M	110.09M	119.66M
Gross Profit	32.03M	21.68M	29.94M	18.85M	-8.59M	-4.87M
EBITDA	52.35M	48.26M	53.99M	34.63M	8.63M	-65.03M
Net Income	21.64M	12.86M	18.41M	4.29M	-20.99M	-93.27M
Balance Sheet
Total Assets	258.01M	268.76M	263.64M	268.28M	247.57M	251.52M
Cash, Cash Equivalents and Short-Term Investments	11.60M	7.03M	11.19M	13.31M	1.77M	7.11M
Total Debt	41.65M	51.65M	70.42M	95.31M	88.47M	77.27M
Total Liabilities	77.04M	97.26M	107.68M	130.43M	116.09M	99.25M
Stockholders Equity	180.97M	171.51M	155.96M	137.85M	131.49M	152.27M
Cash Flow
Free Cash Flow	11.08M	2.22M	10.97M	216.00K	-19.88M	15.27M
Operating Cash Flow	42.68M	30.26M	35.57M	18.20M	-3.46M	22.86M
Investing Cash Flow	-21.64M	-14.09M	-11.99M	-13.60M	-11.80M	-4.98M
Financing Cash Flow	-13.54M	-20.97M	-25.16M	5.97M	10.20M	-11.30M

AKITA Drilling Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AKT.A, the sentiment is Positive. The current price of 1.96 is above the 20-day moving average (MA) of 1.85, below the 50-day MA of 2.01, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 85.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AKT.A.

AKITA Drilling Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHX	71 Outperform	C$343.38M	6.55	23.65%	10.61%	8.98%	-27.41%
ACX	68 Neutral	C$166.51M	4.53	11.51%	―	-16.20%	-38.85%
AKT.A	66 Neutral	C$80.31M	3.42	12.87%	―	24.94%	956.65%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SDI	56 Neutral	C$27.99M	35.90	-0.03%	―	-15.25%	-101.10%
ESI	56 Neutral	C$456.27M	-12.06	-3.50%	―	-2.47%	-246.73%
WRG	51 Neutral	C$70.56M	-10.29	-2.38%	―	-0.38%	6.98%