Dril-Quip, Inc. Fundamental Analysis (NYSE: DRQ)
Dril-Quip, Inc. (NYSE: DRQ) shows weak financial fundamentals with a PE ratio of 17.31, profit margin of 6.17%, and ROE of 5.88%. The company generates $0.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DRQ's fundamental strength across five key dimensions:
Efficiency Score
WeakDRQ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDRQ trades at attractive valuation levels.
Growth Score
WeakDRQ faces weak or negative growth trends.
Financial Health Score
ExcellentDRQ maintains a strong and stable balance sheet.
Profitability Score
WeakDRQ struggles to sustain strong margins.
Key Financial Metrics
Is DRQ Expensive or Cheap?
P/E Ratio
DRQ trades at 17.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DRQ's PEG of -0.22 indicates potential undervaluation.
Price to Book
The market values Dril-Quip, Inc. at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.15 times EBITDA. This is generally considered low.
How Well Does DRQ Make Money?
Net Profit Margin
For every $100 in sales, Dril-Quip, Inc. keeps $6.17 as profit after all expenses.
Operating Margin
Core operations generate 10.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.88 in profit for every $100 of shareholder equity.
ROA
Dril-Quip, Inc. generates $4.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dril-Quip, Inc. produces operating cash flow of $78.87M, showing steady but balanced cash generation.
Free Cash Flow
Dril-Quip, Inc. generates strong free cash flow of $62.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.81 in free cash annually.
FCF Yield
DRQ converts 23.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.002
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How DRQ Stacks Against Its Sector Peers
| Metric | DRQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.31 | 21.54 | Better (Cheaper) |
| ROE | 5.88% | 1255.00% | Weak |
| Net Margin | 6.17% | 1263.00% | Weak |
| Debt/Equity | 0.07 | -1.82 (disorted) | Distorted |
| Current Ratio | 5.01 | 2.24 | Strong Liquidity |
| ROA | 4.64% | 4414.00% | Weak |
DRQ outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dril-Quip, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity