Dril-Quip Stock Analysis, Valuation (NYSE:DRQ)

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$44.55 $0.55 (1.22%) DRQ stock closing price Apr 20, 2018 (Closing)
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Dril-Quip
Updated on : Apr 19, 2018
previous close
DRQ 45.1 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil Field Machines and equipment
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-9.1%
Operating Profit
Operating Margin:
-15.2%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Cash Flow
Operating cash flow:
$33.3M
Net Income:
-$71.5M
PROS      CONS
FCF Margin
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DRQ PS :
3.7
Industry PS :
1.8
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-5%
Return on Equity:
-7.4%
Free Cash Flow Margin:
25.2%
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Dril-Quip Stock Analysis

5 2

View the Dril-Quip stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for DRQ stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Dril-Quip, Inc. Stock Rating 2.1/5

Amigobulls DRQ stock analysis uses latest quarter 2017 Q4 financial data like Dril-Quip revenue growth, profit margins and cash flows. Dril-Quip valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Dril-Quip stock rating which is indicative of the company's financial performance.

Should you buy DRQ stock?

  • Dril-Quip has a healthy FCF (Free Cash Flow) margin of 25.2%.

Should you sell DRQ stock?

  • 2017 Q4 revenue growth of 1.8% YoY was meagre.
  • Revenue declined at a CAGR of -9.1% over the last 5 years.
  • Dril-Quip reported an average operating margin of -15.2% over the Last Twelve Months (LTM).
  • Dril-Quip registered an average TTM Net loss of -22.1%.
  • DRQ stock is trading at a PE ratio of 225.5, which is worse than the industry average multiple of 24.2.
  • DRQ stock is trading at a PS multiple of 3.7, which is a negative when compared to the Oil Field Machines and equipment industry average multiple of 1.8.
  • Dril-Quip has a negative ROIC (Return on Invested Capital) of -5%.
  • Dril-Quip has a negative return on equity of -7.4%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Dril-Quip stock

Investors can use Amigobulls Dril-Quip stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Dril-Quip revenue growth and profit or net income are two main metrics which help in identifying whether DRQ stock is overvalued or undervalued. Investors could make use of DRQ technical analysis to check whether the fundamental story is reflected in the market sentiment.