United Drilling Tools Limited
United Drilling Tools Limited Fundamental Analysis
United Drilling Tools Limited (UNIDT.NS) shows moderate financial fundamentals with a PE ratio of 23.95, profit margin of 10.47%, and ROE of 7.04%. The company generates $1.9B in annual revenue with strong year-over-year growth of 29.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze UNIDT.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakUNIDT.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUNIDT.NS trades at attractive valuation levels.
Growth Score
ExcellentUNIDT.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentUNIDT.NS maintains a strong and stable balance sheet.
Profitability Score
WeakUNIDT.NS struggles to sustain strong margins.
Key Financial Metrics
Is UNIDT.NS Expensive or Cheap?
P/E Ratio
UNIDT.NS trades at 23.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UNIDT.NS's PEG of 0.89 indicates potential undervaluation.
Price to Book
The market values United Drilling Tools Limited at 1.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.07 times EBITDA. This signals the market has high growth expectations.
How Well Does UNIDT.NS Make Money?
Net Profit Margin
For every $100 in sales, United Drilling Tools Limited keeps $10.47 as profit after all expenses.
Operating Margin
Core operations generate 14.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.04 in profit for every $100 of shareholder equity.
ROA
United Drilling Tools Limited generates $6.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Drilling Tools Limited generates limited operating cash flow of $101.19M, signaling weaker underlying cash strength.
Free Cash Flow
United Drilling Tools Limited produces free cash flow of $79.21M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.90 in free cash annually.
FCF Yield
UNIDT.NS converts 1.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How UNIDT.NS Stacks Against Its Sector Peers
| Metric | UNIDT.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.95 | 21.49 | Worse (Expensive) |
| ROE | 7.04% | 996.00% | Weak |
| Net Margin | 10.47% | -59610.00% (disorted) | Strong |
| Debt/Equity | 0.01 | -0.48 (disorted) | Distorted |
| Current Ratio | 10.05 | 5.15 | Strong Liquidity |
| ROA | 6.16% | -2041.00% (disorted) | Weak |
UNIDT.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Drilling Tools Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.17%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-66.86%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-32.40%
Industry Style: Cyclical, Value, Commodity
Declining