Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dril-Quip, Inc. (DRQ)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$17.82 - $25.74$21.68
Multi-Stage$30.17 - $33.09$31.60
Blended Fair Value$26.64
Current Price$15.41
Upside72.87%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%1.250.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--8.12%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)148.87
(-) Cash Dividends Paid (M)74.98
(=) Cash Retained (M)73.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)29.7718.6111.16
Cash Retained (M)73.8873.8873.88
(-) Cash Required (M)-29.77-18.61-11.16
(=) Excess Retained (M)44.1155.2762.72
(/) Shares Outstanding (M)59.9259.9259.92
(=) Excess Retained per Share0.740.921.05
LTM Dividend per Share1.251.251.25
(+) Excess Retained per Share0.740.921.05
(=) Adjusted Dividend1.992.172.30
WACC / Discount Rate8.93%8.93%8.93%
Growth Rate-2.00%-1.00%0.00%
Fair Value$17.82$21.68$25.74
Upside / Downside15.67%40.68%67.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)148.87147.38145.90144.44143.00141.57145.82
Payout Ratio50.37%58.30%66.22%74.15%82.07%90.00%92.50%
Projected Dividends (M)74.9885.9196.62107.10117.37127.41134.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.93%8.93%8.93%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)78.0878.8779.67
Year 2 PV (M)79.7981.4383.08
Year 3 PV (M)80.3882.8785.40
Year 4 PV (M)80.0583.3686.78
Year 5 PV (M)78.9783.0887.37
PV of Terminal Value (M)1,410.301,483.741,560.21
Equity Value (M)1,807.571,893.361,982.51
Shares Outstanding (M)59.9259.9259.92
Fair Value$30.17$31.60$33.09
Upside / Downside95.77%105.06%114.72%

High-Yield Dividend Screener

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