AKITA Drilling Ltd (AKT.A) AI Stock Analysis

• Market Cap: C$82.00M
• Dividend Yield: N/A
• Average Volume (3M): 29.84K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.94
• Revenue Growth: 19.58%
• EPS Growth: 344.29%
• Country: CA
• Employees: 1,064
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.06
• Shares Outstanding: 38,080,406
• 10 Day Avg. Volume: 46,538
• 30 Day Avg. Volume: 29,845
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 28.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: C$2.50 ▲(28.87% Upside)

AKITA Drilling Ltd's overall stock score is driven primarily by its strong valuation, indicating potential undervaluation, and solid financial performance. However, technical analysis suggests some short-term weakness, which tempers the overall score. The absence of earnings call data and corporate events does not impact the score calculation.

AKITA Drilling Ltd Business Overview & Revenue Model

Company Description

AKITA Drilling Ltd. is an oil and gas drilling contractor in Canada and the United States. It provides contract drilling services to the oil and gas industry. The company is involved in the drilling of oil and gas wells; other forms of drilling related to potash mining; and development of storage caverns. It specializes in pad and other purpose-built drilling rigs; and conventional drilling services. As of December 31, 2021, the company had 14 wholly owned and operated drilling rigs in Canada; and 8 XDR 500 rigs and 3 XDR 850XE rigs in the United States. The company was founded in 1964 and is headquartered in Calgary, Canada.

How the Company Makes Money

AKITA 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 a solid financial performance with strong profitability and revenue growth. The balance sheet shows moderate stability with a strong equity position and manageable debt levels. Cash flow is improving, but the company needs to enhance free cash flow conversion.

Income Statement

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

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

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.

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

AKITA Drilling Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AKT.A, the sentiment is Neutral. The current price of 1.94 is below the 20-day moving average (MA) of 2.18, below the 50-day MA of 2.24, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 11.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	77 Outperform	C$345.64M	6.59	23.75%	10.46%	6.97%	-36.60%
ACX	75 Outperform	C$164.25M	4.44	17.64%	―	-10.64%	55.18%
SDI	70 Outperform	C$31.99M	41.03	1.08%	―	-12.27%	-91.01%
AKT.A	68 Neutral	C$82.00M	3.62	12.72%	―	19.58%	344.29%
Sector *	65 Neutral	$14.84B	8.64	2.77%	5.45%	4.51%	-62.52%
ESI	59 Neutral	C$378.67M	14.37	-2.86%	―	-1.65%	-279.49%
WRG	46 Neutral	C$71.07M	―	-1.99%	―	5.00%	22.76%