Dril-quip Inc
DRQ
Oil & Gas Field Machinery & Equipment
Mkt Cap
$643.3MPE
-29.66Debt
-Cash
$202.3MEV
-FCF
$24.58MP/E Ratio
-29.66Debt
-Cash
$202.3MEV
-FCF
$24.58MCharts data: {"Earnings":[{"time":"2014-12-30","value":208712000},{"time":"2015-12-30","value":192008000},{"time":"2016-12-30","value":93221000},{"time":"2017-12-30","value":-100639000},{"time":"2018-12-30","value":-95695000},{"time":"2019-12-30","value":1720000},{"time":"2020-12-30","value":-30768000},{"time":"2021-12-30","value":-127996000},{"time":"2022-12-30","value":443000},{"time":"2023-12-30","value":604000}],"Sales":[{"time":"2014-12-30","value":930957000},{"time":"2015-12-30","value":844310000},{"time":"2016-12-30","value":538731000},{"time":"2017-12-30","value":455469000},{"time":"2018-12-30","value":384626000},{"time":"2019-12-30","value":414806000},{"time":"2020-12-30","value":364973000},{"time":"2021-12-30","value":322945000},{"time":"2022-12-30","value":362070000},{"time":"2023-12-30","value":424060000}],"Net Margins":[{"time":"2014-12-30","value":0.22419080580520906},{"time":"2015-12-30","value":0.2274141014556265},{"time":"2016-12-30","value":0.17303812106598654},{"time":"2017-12-30","value":-0.2209568598521524},{"time":"2018-12-30","value":-0.24880013311632598},{"time":"2019-12-30","value":0.004146516684908126},{"time":"2020-12-30","value":-0.08430212645866955},{"time":"2021-12-30","value":-0.39633993404449674},{"time":"2022-12-30","value":0.0012235203137514845},{"time":"2023-12-30","value":0.0014243267462151583}],"Assets":[{"time":"2014-12-30","value":1449251000},{"time":"2015-12-30","value":1428250000},{"time":"2016-12-30","value":1461404000},{"time":"2017-12-30","value":1399805000},{"time":"2018-12-30","value":1192510000},{"time":"2019-12-30","value":1206565000},{"time":"2020-12-30","value":1151172000},{"time":"2021-12-30","value":1010426000},{"time":"2022-12-30","value":972515000},{"time":"2023-12-30","value":1028181000}],"Stockholders Equity":[{"time":"2014-12-30","value":1245192000},{"time":"2015-12-30","value":1324458000},{"time":"2016-12-30","value":1356424000},{"time":"2017-12-30","value":1294461000},{"time":"2018-12-30","value":1096162000},{"time":"2019-12-30","value":1090701000},{"time":"2020-12-30","value":1041528000},{"time":"2021-12-30","value":897108000},{"time":"2022-12-30","value":874916000},{"time":"2023-12-30","value":881260000}],"ROE":[{"time":"2014-12-30","value":0.16761431168847857},{"time":"2015-12-30","value":0.14497099945789146},{"time":"2016-12-30","value":0.06872556073911992},{"time":"2017-12-30","value":-0.07774587260643619},{"time":"2018-12-30","value":-0.08730005236452276},{"time":"2019-12-30","value":0.001576967473212182},{"time":"2020-12-30","value":-0.02954121252621149},{"time":"2021-12-30","value":-0.14267624410884755},{"time":"2022-12-30","value":0.0005063343223806628},{"time":"2023-12-30","value":0.0006853822935342578}],"ROA":[{"time":"2014-12-30","value":0.19279959096112406},{"time":"2015-12-30","value":0.1748790477857518},{"time":"2016-12-30","value":0.07928539951991373},{"time":"2017-12-30","value":-0.04689510324652362},{"time":"2018-12-30","value":-0.09642602577756161},{"time":"2019-12-30","value":0.008643545934118759},{"time":"2020-12-30","value":-0.05390072030938904},{"time":"2021-12-30","value":-0.12354986906512698},{"time":"2022-12-30","value":0.006961332215955538},{"time":"2023-12-30","value":0.01309886099820946}]}
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for for both offshore and onshore applications worldwide. The company's principal products include subsea and surface wellheads, subsea and surface production trees, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves. It also provides technical advisory services, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products; and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore. The company's products are used to explore for oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, and Spars, as well as moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling and other oilfield contractors, and engineering and construction companies. The company was founded in 1981 and is headquartered in Houston, Texas.
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DCF
Discounted Cash Flow Valuation of Dril-quip Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $24.58M | $15.09M | $9.259M | $5.682M | $3.487M | $2.14M | $1.313M | $805.9K | $494.6K | $303.5K | $186.3K | $1.863M |
| DCF | $13.12M | $7.001M | $3.736M | $1.994M | $1.064M | $567.7K | $303K | $161.7K | $86.27K | $46.04K | $460.4K | |
| Value | $28.54M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -43%
Earnings Stability -9.4%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 23% | 17% | -22% | -25% | 0.41% | -8.4% | -40% | 0.12% | 0.14% | -4.9% |
| ROA | 17% | 7.9% | -4.7% | -9.6% | 0.86% | -5.4% | -12% | 0.7% | 1.3% | -0.89% |
| ROE | 14% | 6.9% | -7.8% | -8.7% | 0.16% | -3% | -14% | 0.051% | 0.069% | -2.5% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -12.04%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.66%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is -4.09%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.35%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -4.28%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.92%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | - | - | - |
| Debt Equity | - | - | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | -61% | -160% | - | - | - | - | - | -160% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at -1.56.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | -3.4% | 2% | 5.1% | 17% | 4.4% |
| Net Income | -51% | - | - | 36% | 8.1% |
| Stockholders Equity | -6% | -4.3% | -5.4% | 0.73% | -0.75% |
| FCF | - | - | - | - | -38% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +1.97%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +4.37%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +8.12%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -4.27%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.75%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -37.69%.