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$17.53 - $25.22$21.28
Multi-Stage$29.22 - $32.04$30.61
Blended Fair Value$25.94
Current Price$15.41
Upside68.35%
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 Rate9.11%9.11%9.11%
Growth Rate-2.00%-1.00%0.00%
Fair Value$17.53$21.28$25.22
Upside / Downside13.73%38.09%63.63%

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 Rate9.11%9.11%9.11%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)77.9478.7479.53
Year 2 PV (M)79.5281.1582.80
Year 3 PV (M)79.9782.4484.97
Year 4 PV (M)79.5082.8086.19
Year 5 PV (M)78.3082.3886.62
PV of Terminal Value (M)1,355.681,426.281,499.78
Equity Value (M)1,750.921,833.781,919.90
Shares Outstanding (M)59.9259.9259.92
Fair Value$29.22$30.61$32.04
Upside / Downside89.63%98.61%107.93%

High-Yield Dividend Screener

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