Drilling Tools International Corporation Common Stock (DTI)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $777,000 in annual free cash flow (0.7% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Revenue declining at 3.4% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Drilling Tools International Corporation Common Stock is a micro-cap energy company valued at $112 million. The business generates $155 million in annual revenue with a 0.8% net margin and $777,000 in free cash flow. From a quality standpoint, Drilling shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is 0.9% FCF yield. Growth dynamics show revenue growing at -3.4% and profit growth of 190.4%. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $777,000 in annual free cash flow (0.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer