AKITA Drilling Ltd (AKT.A) AI Stock Analysis

• Market Cap: C$77.46M
• Dividend Yield: N/A
• Average Volume (3M): 20.40K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 1.15
• Revenue Growth: 2.57%
• EPS Growth: 63.53%
• Country: CA
• Employees: 1,064
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.22
• Shares Outstanding: 38,080,406
• 10 Day Avg. Volume: 37,974
• 30 Day Avg. Volume: 20,398
• PEG Ratio: 0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.62
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: C$2.00 ▲(3.09%Upside)

AKITA Drilling Ltd exhibits moderate financial health with strong equity support and improving debt metrics. While the technical analysis presents mixed signals, the stock's undervaluation compared to peers suggests potential for price appreciation. The lack of earnings call and corporate events data limits insight into future guidance, but addressing revenue and cash flow issues could enhance overall performance.

AKITA Drilling Ltd Business Overview & Revenue Model

Company Description

AKITA Drilling Ltd. is a Canadian-based company that specializes in providing contract drilling services to the oil and gas industry. Operating primarily in the Western Canadian Sedimentary Basin, the company offers a range of drilling solutions including shallow and deep drilling services. AKITA Drilling is recognized for its fleet of high-quality rigs and its commitment to safety, efficiency, and environmental stewardship.

How the Company Makes Money

AKITA 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 shows mixed financial performance with improved operational efficiency but declining revenue and profitability. The balance sheet reflects strong equity support and improving debt metrics, while cash flow constraints pose challenges. Overall, the company demonstrates moderate financial health with potential for growth if revenue and cash flow issues are addressed.

Income Statement

The income statement shows fluctuating revenue with a recent decline compared to the previous year. Gross profit margin improved from negative in 2021 to positive in 2024, indicating improved operational efficiency. However, the net profit margin decreased to 6.65% in 2024 from 8.17% in 2023, reflecting reduced profitability. EBITDA margin remains strong at 24.96% in 2024. The absence of EBIT data for 2024 limits comprehensive margin analysis.

Balance Sheet

The balance sheet exhibits a stable equity base with stockholders' equity increasing over recent years. The debt-to-equity ratio improved with a decrease in total debt, reflecting enhanced financial stability. Return on equity (ROE) stood at 7.50% in 2024, indicating moderate profitability for shareholders. The equity ratio is at 63.83%, demonstrating a strong equity position relative to assets.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow in 2024 compared to 2023, indicating constrained liquidity. Operating cash flow to net income ratio is strong, signifying efficient cash generation relative to profits. However, lower free cash flow to net income ratio highlights potential challenges in cash management.

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
	EBIT
4.64M	13.82M	10.28M	-18.25M	-16.91M
	EBITDA
48.26M	53.99M	34.63M	8.63M	-65.03M
	Net Income Common Stockholders
12.86M	18.41M	4.29M	-20.99M	-93.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.03M	11.19M	13.31M	1.77M	7.11M
	Total Assets
268.76M	263.64M	268.28M	247.57M	251.52M
	Total Debt
51.65M	70.42M	95.31M	88.47M	77.27M
	Net Debt
44.62M	59.23M	82.00M	86.70M	70.16M
	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: Positive
• Last Price: 1.94
• 50DMA: Positive
• 100DMA: Positive
• 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 1.94 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.79, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 81.44 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	79 Outperform	C$369.92M	6.51	25.15%	9.85%	4.69%	-34.62%
ACX	75 Outperform	C$164.40M	3.15	24.63%	―	-5.05%	147.92%
AKT.A	66 Neutral	C$77.46M	4.09	11.11%	―	2.57%	63.53%
SDI	62 Neutral	C$28.99M	16.67	1.91%	―	-11.14%	-84.33%
WRG	60 Neutral	C$71.07M	―	-2.16%	―	6.43%	35.87%
Sector *	57 Neutral	$7.10B	3.09	-3.48%	5.73%	0.74%	-50.59%
ESI	55 Neutral	C$360.52M	14.37	-1.17%	―	-2.85%	-144.20%