Drilling Tools International Corp
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Drilling Tools International Corp AI Insights
Informational only. Not investment advice.Snapshot
- Gross margin 57.5% TTM vs industry median 33.4% - 1.7x advantage signals pricing power in rental tools niche[Gross Margin TTM]
- FCF negative (-9.9M TTM) despite 10.9M operating cash flow - capex of 20.8M consuming all cash generation[Free Cash Flow TTM]
- Intangibles 54.7M represent 45% of equity (121M) - acquisition-driven growth creates impairment exposure[Goodwill and Other Intangible Assets]
Watch Triggers
- Capital Expenditure TTM: Declines below 10M annually — Would flip FCF positive immediately given 10.9M OCF - key inflection signal
- Interest Expense TTM: Exceeds Operating Income TTM — Currently at 65% coverage - deterioration signals debt spiral risk
- Operating Margin TTM: Falls below 3% — Currently 5.1% - compression would eliminate debt service cushion
Bull Case
Gross margin 57.5% (1.7x industry) with asset-light rental model creates operating leverage as revenue scales - each incremental dollar flows through at high margin
P/S ratio 0.62 vs industry median 2.24 - trading at 72% discount despite superior gross margins suggests mispricing
Bear Case
Interest expense 5.3M TTM exceeds operating income 8.2M - debt service consuming 65% of operating profit with 78M total debt
Negative net income (-6.3M TTM), negative ROIC (-3.2%), and FCF burn (-9.9M) - no path to profitability visible yet
Bull vs Bear Balance
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Forward Thesis
Capex cycle peaking; FCF inflection likely as rental fleet matures and maintenance capex normalizes
- PPE of 102M now built out
- Capex 13% of revenue vs 4% industry median
- Operating cash flow positive at 10.9M TTM
Valuation Context
Caveats
Public Strategies Rankings
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DTI Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$154.07M | — | ||
$222.07M | — | ||
0.00 | — | ||
$159.63M | +3.4% | — | |
$-0.11 | — | ||
5.52% | -3.2% | — | |
-2.36% | -4.3% | — | |
$-1.92M | — | ||
-3.10% | -6.0% | — | |
Beta 5Y (Monthly) | unknown | — |
DTI Dividend History
DTI Stock Splits
DTI SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
03/06/26 | 12/31/25 | 10-K | |
11/07/25 | 09/30/25 | 10-Q | |
08/14/25 | 06/30/25 | 10-Q | |
05/14/25 | 03/31/25 | 10-Q | |
03/14/25 | 12/31/24 | 10-K | |
11/14/24 | 09/30/24 | 10-Q | |
08/09/24 | 06/30/24 | 10-Q | |
05/15/24 | 03/31/24 | 10-Q | |
03/28/24 | 12/31/23 | 10-K | |
11/14/23 | 09/30/23 | 10-Q | |
08/14/23 | 06/30/23 | 10-Q | |
05/15/24 | 03/31/23 | 10-Q | |
04/03/23 | 12/31/22 | S-4/A | |
11/14/23 | 09/30/22 | 10-Q | |
08/14/23 | 06/30/22 | 10-Q |