Latest Ratios: P/E Ratio -17.5x · EV/EBITDA 3.4x · ROE -3.1%. (2021–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Market Cap | $68M | $87M | $106M | $80M | $201M | $264M |
| Enterprise Value | $121M | $140M | $176M | $93M | $237M | $292M |
| P/E Ratio → | -17.55 | — | 35.05 | 5.42 | 10.14 | — |
| P/S Ratio | 0.42 | 0.55 | 0.68 | 0.53 | 1.56 | 3.42 |
| P/B Ratio | 0.56 | 0.71 | 0.88 | 0.91 | 4.10 | 23.70 |
| P/FCF | — | — | — | — | — | — |
| P/OCF | 3.40 | 4.37 | 17.44 | 3.45 | 14.40 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.88 | 1.14 | 0.61 | 1.83 | 3.77 |
| EV / EBITDA | 3.35 | 3.88 | 4.73 | 1.93 | 5.28 | 18.90 |
| EV / EBIT | 13.72 | 15.90 | 27.73 | 4.46 | 9.40 | 93.49 |
| EV / FCF | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Gross Margin | 57.0% | 57.0% | 59.6% | 63.3% | 59.3% | 69.5% |
| Operating Margin | 5.5% | 5.5% | 8.7% | 18.4% | 19.5% | -8.1% |
| Net Profit Margin | -2.4% | -2.4% | 2.0% | 9.7% | 16.3% | 2.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | -3.1% | -3.1% | 2.9% | 21.4% | 70.0% | 18.8% |
| ROA | -1.7% | -1.7% | 1.7% | 12.4% | 24.1% | 3.0% |
| ROIC | 3.6% | 3.6% | 6.9% | 22.4% | 30.7% | -12.2% |
| ROCE | 4.6% | 4.6% | 8.9% | 31.1% | 51.1% | -20.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 0.46 | 0.46 | 0.64 | 0.21 | 0.78 | 2.45 |
| Debt / EBITDA | 1.57 | 1.57 | 2.06 | 0.39 | 0.85 | 1.77 |
| Net Debt / Equity | — | 0.43 | 0.59 | 0.14 | 0.73 | 2.45 |
| Net Debt / EBITDA | 1.47 | 1.47 | 1.89 | 0.27 | 0.80 | 1.77 |
| Debt / FCF | — | — | — | — | — | — |
| Interest Coverage | 1.74 | 1.74 | 1.89 | 18.95 | 52.94 | 2.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 2.11 | 2.11 | 2.20 | 2.08 | 1.11 | 0.61 |
| Quick Ratio | 1.52 | 1.52 | 1.63 | 1.86 | 1.02 | 0.55 |
| Cash Ratio | 0.12 | 0.12 | 0.20 | 0.31 | 0.10 | 0.02 |
| Asset Turnover | — | 0.72 | 0.69 | 1.15 | 1.23 | 1.11 |
| Inventory Turnover | 3.78 | 3.78 | 3.56 | 11.10 | 16.07 | 10.09 |
| Days Sales Outstanding | — | 89.69 | 95.75 | 71.85 | 87.66 | 94.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 2.9% | 18.4% | 9.9% | — |
| FCF Yield | — | — | — | — | — | — |
| Buyback Yield | 1.9% | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.9% | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $36M | $32M | $25M | $20M | $27M |
Liquidity and fleet reinvestment
According to recent market data, DTI trades at a forward EV/EBITDA of 2.76x, which, when compared to the broader oilfield services sector, suggests that investors are heavily discounting the company's future earnings potential due to persistent net losses and a highly uncertain North American drilling activity outlook.
The negative TTM P/E ratio of -17.82 underscores the current lack of profitability, while the forward P/E of 32.67 implies that the market is pricing in a significant, albeit speculative, recovery in earnings. This valuation gap relative to peers suggests that the market remains skeptical of management's ability to achieve the necessary operating leverage to turn the business profitable.
Based on reported financial statements, DTI's ROIC has trended downward to -0.8% in 2026Q1, a stark reversal from the 3.5% levels observed in early 2024, indicating that the company is currently failing to generate returns on its invested capital that exceed its cost of financing.
The erosion of ROIC appears driven by both margin compression and an inefficient asset base that is not being fully utilized in the current drilling environment. Investors should monitor whether the company can improve its asset turnover, which has remained stagnant at 0.17, to prevent further destruction of shareholder value.
As indicated by the company's quarterly filings, the cash conversion cycle has ballooned to 167 days in 2026Q1, primarily driven by a significant increase in days inventory outstanding to 158 days, suggesting that DTI is struggling to efficiently manage its rental fleet inventory against current demand.
The lengthening of the cash conversion cycle indicates that capital is being trapped in idle equipment, which is particularly concerning given the company's limited cash position. This inefficiency suggests that the company's logistical density, while a theoretical moat, is currently acting as a drag on liquidity and operational flexibility.
According to recent SEC filings, DTI's debt-to-EBITDA ratio has surged to 15.88x as of 2026Q1, a dramatic increase from 1.91x in 2023Q4, which signals that the company's ability to service its debt obligations is becoming increasingly compromised by declining operating performance and rising interest expenses.
The negative interest coverage ratio of -2.07 indicates that the company is currently unable to cover its interest payments from operating income alone. This leverage profile warrants close investigation, as it may necessitate further dilutive financing or asset sales if the company's cash flow does not stabilize.
The most commonly misapplied metric for DTI is EBITDA, which, as reported in financial statements, obscures the massive depreciation costs inherent in a rental-heavy business model and fails to account for the recurring capital expenditures required to keep the drill collar fleet technologically competitive and operational.
Investors should instead focus on Free Cash Flow (FCF) or EBITDA minus maintenance CapEx, as these metrics better reflect the true cash-generative capacity of the business. Relying on headline EBITDA significantly overstates the company's financial health by ignoring the reality that its primary assets are constantly depreciating and require continuous reinvestment.
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Quick answers to the most common questions about buying DTI stock.
Drilling Tools International Corp.'s current P/E ratio is -17.5x. The historical average is 16.9x.
Drilling Tools International Corp.'s current EV/EBITDA is 3.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.9x.
Drilling Tools International Corp.'s return on equity (ROE) is -3.1%. The historical average is 22.0%.
Based on historical data, Drilling Tools International Corp. is trading at a P/E of -17.5x. Compare with industry peers and growth rates for a complete picture.
Drilling Tools International Corp. has 57.0% gross margin and 5.5% operating margin.
Drilling Tools International Corp.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.