Drilling Tools International Corp (DTI) stock analysis
Close on Nov 11, 2026Market cap $56.80MP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak6 of 30 checks passed
Drilling Tools International passes 6 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 0/6
- Past performance
- 0/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 65.1% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $1.61 is below our fair value estimate of $4.61.
Low debt
Debt is 11.3% of shareholders' equity, under the 40% we consider low.
EV/EBITDA below its 5-year median
Drilling Tools International's EV/EBITDA of 3.1 is below its 5-year median of 3.2.
What to watch
Return on equity under 15%
Return on equity was -4.0% over the last twelve months and averaged 31.0% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 9.8% of total debt; we look for at least 20%.
Elevated bankruptcy risk
The Altman Z-score is 1.15; above 3 is the safe zone and below 1.8 the distress zone.
Valuation4/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA below its 5-year median
Drilling Tools International's EV/EBITDA of 3.1 is below its 5-year median of 3.2.
P/B below the industry
Drilling Tools International's price-to-book of 0.48 is below the Construction, Mining, and Materials Handling median of 1.38.
Trading below fair value
The share price of $1.61 is below our fair value estimate of $4.61.
Margin of safety over 20%
The price is 65.1% below fair value, more than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -3.6% over the last twelve months; the Construction, Mining, and Materials Handling median is 10.4%.
Guidance issued
The latest outlook (2026 Full Year Revenue, May 7, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin trend
This company does not report gross profit.
Past performance0/6
Return on equity under 15%
Return on equity was -4.0% over the last twelve months and averaged 31.0% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity below the industry
Drilling Tools International's return on equity of -4.0% is below the Construction, Mining, and Materials Handling median of 4.5%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was -3.1% over the last twelve months, against a 5-year average of 6.4%.
Net margin below the industry
Drilling Tools International's net margin of -3.1% is below the Construction, Mining, and Materials Handling median of 2.6%.
Financial health2/6
Low debt
Debt is 11.3% of shareholders' equity, under the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 9.8% of total debt; we look for at least 20%.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 2.08 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.15; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Drilling Tools International has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$4.61
The share price is 65% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 8.2× | 3.2× | 11.1× | $4.73 | 78% |
| P/B | 1.3× | 1.0× | 1.4× | $4.19 | 22% |
| Fair value | $4.61 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 9.6
- Construction, Mining, and Materials Handling median 29.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $454.78K
- Value traded per 1% price move
- $115.66K
Downside
High risk
- Typical loss in a bad month
- 32.6%
- Volatility (annualized)
- 77%
- Sharpe ratio, 1 year
- -0.40
- Beta to the S&P 500 (5Y)
- 0.58
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2021 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +3.4% | +7.2% | – | – |
Returns and balance sheet
5 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2021 | FY2021 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | -3.1% | |
| Return on assets | – | – | -1.7% | |
| Current ratio | – | – | 2.11 | |
| Debt to equity | – | – | 0.17 | |
| Net debt to EBITDA | – | – | – | |
| Inventory turnover | – | – | – | |
| Capex to revenue | – | – | 12.6% | |
| Diluted shares | – | – | 36M |
Cash use needs five years of cash flow figures
Drilling Tools International does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -2.4% | 0.72× | 1.83× | -3.1% |
| FY2024 | 2.0% | 0.87× | 1.70× | 2.9% |
| FY2023 | 9.7% | 1.28× | 1.98× | 24.6% |
| FY2022 | 16.3% | 0.82× | 7.45× | 99.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$3.76M
- Cash generatingOperating cash flow above zero$19.92M
- Return on assets improvedROA up on the prior year2.3% → -1.7%
- Earnings backed by cashOperating cash flow above net income$19.92M vs -$3.76M
- Less leverageLong-term debt to assets fell8.8% → 6.7%
- Better liquidityCurrent ratio rose2.20 → 2.11
- No dilutionShare count did not rise32M → 36M
- Gross margin improvedGross margin up on the prior year75.08% → –
- More efficientAsset turnover rose1.17 → 0.72
See a number that looks wrong?