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AKITA Drilling Ltd (TSE:AKT.A)
TSX:AKT.A
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AKITA Drilling Ltd (AKT.A) AI Stock Analysis

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TSE:AKT.A

AKITA Drilling Ltd

(TSX:AKT.A)

Rating:72Outperform
Price Target:
C$2.00
▼(-0.99% Downside)
AKITA Drilling Ltd's strong financial performance and attractive valuation are the primary drivers of its score. The technical analysis suggests a neutral market sentiment, which slightly tempers the overall outlook. The lack of earnings call data and corporate events does not impact the score.

AKITA Drilling Ltd (AKT.A) vs. iShares MSCI Canada ETF (EWC)

AKITA Drilling Ltd Business Overview & Revenue Model

Company DescriptionAKITA Drilling Ltd (AKT.A) is a Canadian-based company operating in the oil and gas industry, specializing in providing contract drilling services. The company offers drilling rigs and related services primarily to oil and gas exploration and production companies in Canada and the United States. AKITA Drilling is known for its high-quality, efficient, and safe drilling operations, catering to a variety of drilling needs, including conventional and unconventional resource plays.
How the Company Makes MoneyAKITA Drilling Ltd generates revenue primarily through its contract drilling services. The company makes money by leasing its fleet of drilling rigs to oil and gas companies, who pay for the use of these rigs and the associated operational services. The revenue streams consist mainly of day rates, which are fees charged per day for the use of their drilling rigs, typically based on the rig's specifications and the complexity of the drilling operation. The company also benefits from long-term contracts, which provide more predictable and stable income. Additionally, AKITA Drilling may engage in partnerships or joint ventures with other industry players to enhance service offerings and expand market reach. External factors such as oil and gas prices, drilling activity levels, and technological advancements can significantly influence the company's revenue.

AKITA Drilling Ltd Financial Statement Overview

Summary
AKITA Drilling Ltd demonstrates commendable financial performance with solid profitability and revenue growth. The balance sheet shows moderate stability with a strong equity position and manageable debt levels. Cash flow performance is improving, though there is room for enhancing free cash flow conversion.
Income Statement
75
Positive
AKITA Drilling Ltd shows a solid performance on its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 13.63%, indicating a reasonable level of profitability, considering the industry. The net profit margin has improved to about 8.89%, reflecting efficient cost management and profitability enhancement. Revenue growth from the previous annual period is 9.72%, which suggests positive business momentum. EBIT and EBITDA margins stand at 5.37% and 22.30%, respectively, indicating healthy operational efficiency. The company has shown resilience in an industry marked by volatility.
Balance Sheet
70
Positive
The balance sheet of AKITA Drilling Ltd reflects moderate financial stability. The debt-to-equity ratio is approximately 0.30, which is manageable and indicates a balanced approach to leverage. The return on equity (ROE) is 10.47%, suggesting effective use of equity capital to generate profits. The equity ratio is 65.43%, highlighting a strong equity position relative to total assets. However, the presence of debt should be monitored given the cyclic nature of the oil and gas industry.
Cash Flow
68
Positive
The cash flow statement shows a mixed performance. The free cash flow growth rate is 92.22%, indicating a significant improvement in cash generation ability. The operating cash flow to net income ratio is 1.88, reflecting robust cash flow relative to earnings, which is a positive sign. However, the free cash flow to net income ratio is 0.23, suggesting a need for better conversion of earnings into free cash flow, which could be a concern for future capital reinvestment and debt servicing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue212.11M193.32M225.48M201.00M110.09M119.66M
Gross Profit28.92M21.68M29.94M18.85M-8.59M-4.87M
EBITDA47.30M48.26M53.99M34.63M8.63M-65.03M
Net Income18.87M12.86M18.41M4.29M-20.99M-93.27M
Balance Sheet
Total Assets275.47M268.76M263.64M268.28M247.57M251.52M
Cash, Cash Equivalents and Short-Term Investments10.49M7.03M11.19M13.31M1.77M7.11M
Total Debt53.89M51.65M70.42M95.31M88.47M77.27M
Total Liabilities95.19M97.26M107.68M130.43M116.09M99.25M
Stockholders Equity180.28M171.51M155.96M137.85M131.49M152.27M
Cash Flow
Free Cash Flow4.27M2.22M10.97M216.00K-19.88M15.27M
Operating Cash Flow35.38M30.26M35.57M18.20M-3.46M22.86M
Investing Cash Flow-19.81M-14.09M-11.99M-13.60M-11.80M-4.98M
Financing Cash Flow-18.64M-20.97M-25.16M5.97M10.20M-11.30M

AKITA Drilling Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.02
Price Trends
50DMA
2.16
Negative
100DMA
2.05
Negative
200DMA
1.86
Positive
Market Momentum
MACD
-0.04
Negative
RSI
43.90
Neutral
STOCH
57.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AKT.A, the sentiment is Negative. The current price of 2.02 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.16, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AKT.A.

AKITA Drilling Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$168.32M4.5517.64%-10.64%55.18%
72
Outperform
C$80.48M3.7112.72%19.58%344.29%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
64
Neutral
C$348.35M6.6423.75%10.47%6.97%-36.60%
57
Neutral
C$25.99M33.331.08%-12.27%-91.01%
54
Neutral
C$71.41M-1.99%5.00%22.76%
52
Neutral
C$400.83M14.37-2.86%-1.65%-279.49%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AKT.A
AKITA Drilling Ltd
2.02
0.71
54.20%
TSE:ACX
Cathedral Energy Services
4.82
-1.01
-17.32%
TSE:ESI
Ensign Energy Services
2.17
-0.24
-9.96%
TSE:SDI
Stampede Drilling Inc
0.13
-0.08
-38.10%
TSE:PHX
PHX Energy Services
7.55
-0.86
-10.23%
TSE:WRG
Western Energy Services
2.11
-0.87
-29.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025