Drilling Tools International Corporation Common Stock (DTI)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a bottom-up investor, and DTI looks like a cyclical oilfield rental business with no obvious durable moat. The filed record shows a sharp deterioration: revenue was $152.0M in fiscal 2023, $154.4M in fiscal 2024, and $159.6M in fiscal 2025, yet net income fell from $14.7M to $3.0M and then to a $3.8M loss. FairStock classifies it as a TURNAROUND, with a loss in the latest year after earlier profits. The latest filings confirm weakness: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $38.1M and net loss was $1.8M; in fiscal Q1 2026 revenue was $38.0M and net loss $1.5M; in fiscal Q3 2025 revenue was $38.8M and net loss $903,000. Revenue in fiscal Q2 2026 was also below the $39.4M reported in fiscal Q2 2025, and the latest quarterly net margin was -4.71%. Financial health is poor: trailing free cash flow is -$11.0M, giving a FairStock FCF yield of -15.4%; the Piotroski score is 2/9 and Altman Z is 0.71. Debt/equity is 0.66. On valuation, at the 2026-10-13 close of $2.02, FairStock shows P/B of 0.60, negative P/E of -22.44, and EV/EBITDA of 5.15. A low price-to-book and modest EV/EBITDA might attract a Graham-style investor, but negative earnings, cash burn, and declining profit from earlier years mean this is a turnaround, not a proven bargain. I would need evidence of stabilized revenue, positive cash generation, and a healthier balance sheet before calling the business strong.

In plain English: Drilling Tools International makes and rents tools used to drill oil and gas wells. The business looks weak right now: sales have slipped, it has posted losses, and it is burning cash. At the recent price near $2, the stock looks cheap compared with the accounting value of its assets, but the low price may just reflect those troubles.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer