One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Drilling Tools International Corporation
DTI · NCM · Energy · Oil & Gas Equipment & Services
Current price
$2.45
52-week range
$1.87 - $4.69
Market cap
$86.44M
Balance sheet
Stretched
1.74x Concerning
Net debt $76.89M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
3 Risks
0 rewards · 3 risks
- Risk Net debt grew 95.1% over 3 years.
- Risk Operating margin compressed from 19.5% to -2.0% over 3 years.
- Risk Return on equity was -2.5% last year — the company lost money on shareholders' equity.
What this company does
Drilling Tools International Corporation
Drilling Tools International makes and rents out specialized equipment that energy companies use to drill for oil and gas. The company's business is mostly rental-focused, which means it earns a steady stream of income as long as its tools are in use, rather than relying on one-time sales. This makes its financial success closely tied to the overall amount of drilling activity happening in the energy sector.
How the company got here
Drilling Tools International, or DTI, started in 1984 as a small private company in Louisiana called Directional Rentals Inc. A big change came in 2012 when a private investment firm bought it and began to grow the business quickly through acquisitions (when one company buys another). After more than a decade of expansion, the company became publicly traded on the Nasdaq stock exchange in 2023, meaning anyone can now buy a piece of the company. DTI has continued to buy other companies to expand its technology and its presence around the world.
What it actually does
Think of DTI as a specialized rental and manufacturing company for the oil and gas industry. When energy companies drill for oil and natural gas, especially for wells that go sideways (horizontal) or at an angle (directional), they need very specific, durable tools that go deep underground. DTI designs, makes, and mostly rents out these heavy-duty tools, like special drill bits, collars, and stabilizers that guide the drilling. They also provide services to inspect and repair this equipment, which is critical for safety and efficiency deep inside the earth.
Tool Rental
This is the company's main business, making up the large majority of its revenue (the total money it brings in from sales). Instead of buying expensive and highly specialized drilling equipment they may only need for a specific job, oil and gas companies pay DTI to rent it. This rental-focused model includes a wide variety of 'downhole' tools—equipment used deep inside the oil or gas well. This part of the business provides a steady stream of income as long as oil and gas exploration and drilling are active.
Product Sales
While most of its business is rentals, DTI also sells some of the tools and equipment it manufactures. This is a smaller part of the company's overall revenue compared to its rental business. These sales can be for new tools or for parts and components needed by their customers. This allows them to meet the needs of customers who prefer to own their equipment rather than rent it.
What management is betting on now
Management's current strategy is heavily focused on growing by acquiring other companies, a tactic to consolidate (unite smaller companies into a larger one) what they see as a fragmented industry. They are also pushing to expand their business internationally, particularly in the Eastern Hemisphere (Europe, the Middle East, and Asia), to balance out the market ups and downs in North America. A key part of this is getting their more advanced, proprietary tools, like the Drill-N-Ream® which helps condition the wellbore (the hole being drilled), used more widely in these new markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.97M
FY2024 Q4
$-6.88M
FY2025 Q1
$-2.61M
FY2025 Q2
$-5.36M
FY2025 Q3
$6.42M
FY2025 Q4
$1.32M
FY2026 Q1
$-10.85M
FY2026 Q2
$-6.53M
Revenue
$38.07M
Net income
$-1.79M
Diluted EPS
-0.05
Operating cash flow
$-2.30M
Free cash flow
$-6.53M
Fetching…
Sources
Revenue
$37.96M
Net income
$-1.54M
Diluted EPS
-0.04
Operating cash flow
$-3.16M
Free cash flow
$-10.85M
Fetching…
Sources
Revenue
$38.51M
Net income
$1.22M
Diluted EPS
0.04
Operating cash flow
$5.33M
Free cash flow
$1.32M
Fetching…
Sources
Revenue
$38.82M
Net income
$-903.00K
Diluted EPS
-0.03
Operating cash flow
$9.96M
Free cash flow
$6.42M
Fetching…
Sources
Revenue
$39.42M
Net income
$-2.41M
Diluted EPS
-0.07
Operating cash flow
$2.19M
Free cash flow
$-5.36M
Fetching…
Sources
Revenue
$42.88M
Net income
$-1.67M
Diluted EPS
-0.05
Operating cash flow
$2.43M
Free cash flow
$-2.61M
Fetching…
Sources
Revenue
$39.85M
Net income
$-1.34M
Diluted EPS
-0.06
Operating cash flow
$-3.67M
Free cash flow
$-6.88M
Fetching…
Sources
Revenue
$40.09M
Net income
$867.00K
Diluted EPS
0.03
Operating cash flow
$5.33M
Free cash flow
$1.97M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $2.45
We couldn't calculate a fair value right now.
Is it drowning in debt?
Stretched
Net debt $76.9M. Interest coverage 1.7x.
Net debt
$76.89M
Interest coverage
1.74x
Drilling Tools International Corporation's profit covers its interest bill about 1.7 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
DTI
BASELINE
Drilling Tools International Corporation
Total debt $79.41M Interest coverage 1.74x This is the baseline the peer rows are being compared against.
Total debt $343.00M Interest coverage -0.67x -100% vs DTI This peer has almost no interest-payment cushion compared with DTI.
Total debt $5.01M Interest coverage -2.96x -100% vs DTI This peer has almost no interest-payment cushion compared with DTI.
Total debt $36.22M Interest coverage 0.30x -83% vs DTI Carries about 5.7x less debt cushion than DTI.
Total debt $1.24B Interest coverage 17.11x +881% vs DTI Carries about 9.8x more debt cushion than DTI.
Total debt $1.62B Interest coverage 5.43x +211% vs DTI Carries about 3.1x more debt cushion than DTI.
What you should know
The case for and against DTI
0 Rewards
3 Risks
Rewards
Risks
-
Net debt grew 95.1% over 3 years.
-
Operating margin compressed from 19.5% to -2.0% over 3 years.
-
Return on equity was -2.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
9.07x
P/B
0.72x
P/S
0.56x
EV/EBITDA
5.53x
PEG ratio
0.91x
Profitability
How much profit each dollar creates
Gross margin
72.5%
Operating margin
-2.0%
Net margin
-2.0%
ROE
-2.5%
ROA
0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
2.18x
Quick ratio
1.43x
Total debt
$79.41M
Total cash
$2.52M
Growth
How the business has been compounding
Revenue TTM
$153.36M
Revenue 5Y CAGR
2.5%
EPS TTM
-0.09
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$9.83M
Free CF TTM
$-1.92M
FCF margin
-1.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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