📊 DTI Key Takeaways
Is DTI a Good Investment? Thesis Analysis
DTI exhibits deteriorating profitability with negative net margins (-2.4%) and operating losses despite modest revenue growth of 3.4% YoY, indicating structural challenges in the business model. The company's free cash flow is essentially breakeven (-224K) while burning capital expenditures of $20.1M against operating cash flow of only $19.9M, leaving minimal margin for error. With low cash reserves ($3.6M) relative to long-term debt ($45.8M) and negative returns on equity and assets, the company faces material financial stress without significant operational improvement.
Why Buy DTI? Key Strengths
- Solid liquidity position with current ratio of 2.11x and quick ratio of 1.52x providing near-term operational flexibility
- Moderate leverage with debt-to-equity of 0.37x indicating balance sheet is not severely overleveraged
- Positive operating cash flow of $19.9M demonstrates some ability to generate cash from core operations despite accounting losses
DTI Investment Risks to Consider
- Unprofitable operations with negative net margin of -2.4% and operating margin of -1.8%, indicating fundamental business challenges
- Free cash flow is essentially flat at -224K with capex ($20.1M) nearly consuming all operating cash flow, leaving no cushion for debt service or dividends
- Critically low cash balance of $3.6M relative to $45.8M long-term debt creates refinancing risk and limits financial flexibility
- Negative ROE of -3.1% and ROA of -1.7% demonstrate value destruction across the capital base
- 9 Form 4 insider filings in 90 days may signal volatility or management concerns regarding business trajectory
Key Metrics to Watch
- Quarterly operating margin trend - need to see positive progression toward breakeven or profitability
- Free cash flow sustainability - capex intensity must decrease or operations must improve to generate positive FCF
- Cash balance depletion rate - with only $3.6M available, monitor burn rate and liquidity runway carefully
- Revenue quality and gross margin recovery - the 3.4% YoY growth is modest and gross margin unavailability suggests pricing or cost pressures
- Debt maturity schedule - identify when long-term debt becomes due and assess refinancing capabilities
DTI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.11x current ratio provides a solid financial cushion.
DTI Profitability Ratios
DTI vs Industrial Sector
How Drilling Tools International Corp compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DTI Overvalued or Undervalued?
Based on fundamental analysis, Drilling Tools International Corp has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DTI Balance Sheet & Liquidity
DTI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Drilling Tools International Corp's revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $0.09 reflects profitable operations.
DTI Growth Metrics (YoY)
DTI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $38.8M | $365.0K | $0.03 |
| Q2 2025 | $37.5M | $365.0K | $0.01 |
| Q1 2025 | $37.0M | -$1.7M | $-0.05 |
| Q3 2024 | $38.1M | $365.0K | $0.03 |
| Q2 2024 | $37.5M | $365.0K | $0.01 |
| Q1 2024 | $37.0M | $3.1M | $0.11 |
| Q3 2023 | $36.5M | $937.0K | $0.14 |
| Q2 2023 | $30.4M | $937.0K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DTI Capital Allocation
DTI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Drilling Tools International Corp (CIK: 0001884516)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DTI
What is the AI rating for DTI?
Drilling Tools International Corp (DTI) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DTI's key strengths?
Claude: Solid liquidity position with current ratio of 2.11x and quick ratio of 1.52x providing near-term operational flexibility. Moderate leverage with debt-to-equity of 0.37x indicating balance sheet is not severely overleveraged.
What are the risks of investing in DTI?
Claude: Unprofitable operations with negative net margin of -2.4% and operating margin of -1.8%, indicating fundamental business challenges. Free cash flow is essentially flat at -224K with capex ($20.1M) nearly consuming all operating cash flow, leaving no cushion for debt service or dividends.
What is DTI's revenue and growth?
Drilling Tools International Corp reported revenue of $159.6M.
Does DTI pay dividends?
Drilling Tools International Corp does not currently pay dividends.
Where can I find DTI SEC filings?
Official SEC filings for Drilling Tools International Corp (CIK: 0001884516) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DTI's EPS?
Drilling Tools International Corp has a diluted EPS of $-0.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DTI a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Drilling Tools International Corp has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DTI stock overvalued or undervalued?
Valuation metrics for DTI: ROE of -3.1% (sector avg: 15%), net margin of -2.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DTI stock in 2026?
Our dual AI analysis gives Drilling Tools International Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DTI's free cash flow?
Drilling Tools International Corp's operating cash flow is $19.9M, with capital expenditures of $20.1M. FCF margin is -0.1%.
How does DTI compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -2.4% (avg: 10%), ROE -3.1% (avg: 15%), current ratio 2.11 (avg: 1.8).