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Akita Drill Cl A Nv (TSE:AKT.A)
:AKT.A
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AKITA Drilling Ltd (AKT.A) AI Stock Analysis

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AKITA Drilling Ltd

(TSX:AKT.A)

Rating:71Outperform
Price Target:
C$2.50
▲(5.49%Upside)
AKITA Drilling Ltd's overall stock score is driven primarily by its strong financial performance and attractive valuation. The technical analysis supports a positive trend, though the need for better free cash flow conversion remains a concern. The lack of earnings call and corporate events data limits further insights.

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

AKITA Drilling Ltd Business Overview & Revenue Model

Company DescriptionAKITA 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 MoneyAKITA Drilling Ltd. generates revenue by providing contract drilling services to oil and gas exploration and production companies. The company's primary revenue stream comes from day rates charged to clients for the use of its drilling rigs and associated services. These contracts can vary in length and are typically based on a fixed daily rate, which covers the cost of the rig, labor, and operational support. Key factors contributing to AKITA's earnings include the utilization rate of its rig fleet, rig efficiency, and the overall demand for drilling services driven by commodity prices and exploration activities. Additionally, the company may engage in strategic partnerships or joint ventures to enhance its service offerings and expand its market presence.

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
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue193.32M225.48M201.00M110.09M119.66M
Gross Profit21.68M29.94M18.85M-8.59M-4.87M
EBITDA48.26M53.99M34.63M8.63M-65.03M
Net Income12.86M18.41M4.29M-20.99M-93.27M
Balance Sheet
Total Assets268.76M263.64M268.28M247.57M251.52M
Cash, Cash Equivalents and Short-Term Investments7.03M11.19M13.31M1.77M7.11M
Total Debt51.65M70.42M95.31M88.47M77.27M
Total Liabilities97.26M107.68M130.43M116.09M99.25M
Stockholders Equity171.51M155.96M137.85M131.49M152.27M
Cash Flow
Free Cash Flow2.22M10.97M216.00K-19.88M15.27M
Operating Cash Flow30.26M35.57M18.20M-3.46M22.86M
Investing Cash Flow-14.09M-11.99M-13.60M-11.80M-4.98M
Financing Cash Flow-20.97M-25.16M5.97M10.20M-11.30M

AKITA Drilling Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.37
Price Trends
50DMA
2.15
Positive
100DMA
1.93
Positive
200DMA
1.79
Positive
Market Momentum
MACD
0.04
Positive
RSI
57.04
Neutral
STOCH
63.54
Neutral
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 2.37 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.15, and above the 200-day MA of 1.79, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 63.54 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSACX
80
Outperform
C$153.38M2.9524.63%-5.05%147.92%
TSPHX
79
Outperform
C$366.41M6.6025.15%9.93%4.69%-34.62%
71
Outperform
C$92.66M4.9911.11%2.57%63.53%
TSSDI
69
Neutral
C$29.99M16.671.91%-11.14%-84.33%
TSESI
64
Neutral
C$417.42M14.37-1.17%-2.85%-144.20%
TSWRG
58
Neutral
C$74.96M-2.16%6.43%35.87%
52
Neutral
C$2.94B-1.05-3.46%5.87%3.01%-47.13%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AKT.A
AKITA Drilling Ltd
2.37
1.02
75.56%
TSE:ACX
Cathedral Energy Services
4.54
-2.16
-32.24%
TSE:ESI
Ensign Energy Services
2.26
-0.16
-6.61%
TSE:SDI
Stampede Drilling Inc
0.14
-0.10
-41.67%
TSE:PHX
PHX Energy Services
8.23
-1.04
-11.22%
TSE:WRG
Western Energy Services
2.23
-0.61
-21.48%
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: Jul 09, 2025