Dril Quip Profitability Analysis

DRQ
 Stock
  

USD 24.02  0.60  2.56%   

For Dril Quip profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dril Quip to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dril-Quip utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dril Quip's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dril-Quip over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
Dril Quip Price to Sales Ratio is very stable at the moment as compared to the past year. Dril Quip reported last year Price to Sales Ratio of 2.15. As of 11th of August 2022, Sales per Share is likely to grow to 11.24, while Return on Sales is likely to drop (0.40) . As of 11th of August 2022, Income Tax Expense is likely to grow to about 3 M, while Accumulated Other Comprehensive Income is likely to drop (160.7 M).

Dril Quip Revenues

417.38 Million

Is Dril Quip's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dril Quip. If investors know Dril Quip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dril Quip listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
805 M
Quarterly Revenue Growth YOY
0.16
Return On Assets
-0.0204
Return On Equity
-0.0956
The market value of Dril-Quip is measured differently than its book value, which is the value of Dril Quip that is recorded on the company's balance sheet. Investors also form their own opinion of Dril Quip's value that differs from its market value or its book value, called intrinsic value, which is Dril Quip's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dril Quip's market value can be influenced by many factors that don't directly affect Dril Quip's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dril Quip's value and its price as these two are different measures arrived at by different means. Investors typically determine Dril Quip value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dril Quip's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dril-Quip Return On Asset vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dril Quip's current stock value. Our valuation model uses many indicators to compare Dril Quip value to that of its competitors to determine the firm's financial worth.
Dril-Quip is one of the top stocks in ebitda category among related companies. It is one of the top stocks in return on asset category among related companies . Dril Quip Earnings Before Interest Taxes and Depreciation Amortization EBITDA are very stable at the moment as compared to the past year. Dril Quip reported last year Earnings Before Interest Taxes and Depreciation Amortization EBITDA of (93.88 Million). Comparative valuation analysis is a catch-all model that can be used if you cannot value Dril Quip by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dril Quip's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dril Quip's earnings, one of the primary drivers of an investment's value.

Dril Quip Return On Asset vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Dril Quip 
EBITDA 
 = 
Revenue 
-  
Basic Expenses 
(3.44 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Dril Quip 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
(2.04) %
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Dril Quip Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dril Quip, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dril Quip will eventually generate negative long term returns. The profitability progress is the general direction of Dril Quip's change in net profit over the period of time. It can combine multiple indicators of Dril Quip, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-156.6 M-160.7 M
Consolidated Income-128 M-131.4 M
Net Income-128 M-131.4 M
Net Income Common Stock-128 M-131.4 M
Operating Income-124.8 M-128.1 M
Income Tax Expense2.9 MM
Net Income Per Employee-95.4 K-97.9 K
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. The company was founded in 1981 and is headquartered in Houston, Texas. Dril Quip operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 1342 people.

Dril Quip Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dril Quip. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dril Quip position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dril Quip's important profitability drivers and their relationship over time.

Dril Quip Profitability Trends

Dril Quip profitability trend refers to the progression of profit or loss within a business. An upward trend means that Dril Quip's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Dril Quip's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Dril Quip Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Dril Quip different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Dril Quip in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Dril Quip's future profitability.

Use Dril Quip in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dril Quip position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dril Quip will appreciate offsetting losses from the drop in the long position's value.

Dril Quip Pair Trading

Dril-Quip Pair Trading Analysis

The ability to find closely correlated positions to Dril Quip could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dril Quip when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dril Quip - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dril-Quip to buy it.
The correlation of Dril Quip is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dril Quip moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dril-Quip moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dril Quip can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Continue to Investing Opportunities. Note that the Dril-Quip information on this page should be used as a complementary analysis to other Dril Quip's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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To fully project Dril Quip's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dril-Quip at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dril Quip's income statement, its balance sheet, and the statement of cash flows.
Potential Dril Quip investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dril Quip investors may work on each financial statement separately, they are all related. The changes in Dril Quip's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dril Quip's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.