Dril-Quip, Inc. (DRQ)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Dril-Quip, Inc. (DRQ) trades at $15.41 with AI Score 54/100 (Grade B). Dril-Quip, Inc. designs, manufactures, and services engineered drilling and production equipment for the global oil and gas industry. Market cap: $530.91M, Sector: Energy.
Price live · AI analysis from May 10, 2026Analyst Coverage for DRQ: DRQ does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates DRQ against Energy peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
DRQ: 4/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Dril-Quip, Inc. (DRQ) Energy Operations & Outlook
Dril-Quip, Inc. provides specialized drilling and production equipment for the oil and gas sector, focusing on deepwater and harsh environments. With a global presence and a comprehensive product portfolio, Dril-Quip serves integrated, independent, and foreign national oil companies, differentiating itself through engineered solutions and technical services.
What Is the Investment Thesis for DRQ?
Dril-Quip, Inc. presents a compelling, albeit risky, investment case within the oil and gas equipment sector. The company's focus on deepwater and harsh environment applications positions it to capitalize on increasing offshore exploration and production activities. With a P/E ratio of 34.1 and a profit margin of 5.3%, the company shows potential for earnings growth as the energy sector recovers. Key catalysts include increased capital expenditure by oil and gas companies and successful adoption of new technologies. However, investors should be aware of risks such as fluctuating oil prices and intense competition. The company's beta of 0.84 suggests lower volatility compared to the broader market.
Based on FMP financials and quantitative analysis
DRQ Key Highlights
- Market capitalization of $530.91M reflects the company's current valuation in the market.
- P/E ratio of 34.1 indicates the price investors are willing to pay for each dollar of Dril-Quip's earnings.
- Profit margin of 5.3% demonstrates the company's profitability after accounting for operating expenses.
- Gross margin of 27.0% shows the company's efficiency in converting revenue into gross profit.
- Beta of 0.84 suggests the stock is less volatile than the overall market.
Who Are DRQ's Competitors?
DRQ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| SEI Solaris Energy Infrastructure, Inc. | $67.46 | +0.40% | $4.84B | 50 |
| PLSDF Pulse Seismic Inc. | $2.39 | +1.27% | $121.21M | 67 |
| LB LandBridge Company LLC | $76.84 | +4.19% | $5.92B | 63 |
| EFXT Enerflex Ltd. | $22.63 | -1.95% | $2.76B | 62 |
| GZPZF Gaztransport & Technigaz S.A. | $237.53 | +7.62% | $8.80B | 62 |
| PSYTF Pason Systems Inc. | $8.75 | -0.96% | $678.50M | 54 |
| USAC USA Compression Partners, LP | $25.84 | -1.97% | $3.12B | 54 |
| DDHLF DDH1 Limited | $0.58 | -3.33% | $234.30M | 55 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are DRQ's Key Strengths?
- Specialization in deepwater and harsh environment equipment.
- Comprehensive product portfolio covering drilling and production.
- Strong reputation for engineering expertise and reliability.
- Global presence with a well-established service network.
What Are DRQ's Weaknesses?
- Dependence on the cyclical oil and gas industry.
- Relatively small market capitalization compared to major competitors.
- Limited diversification beyond oil and gas equipment.
- Lower profit margin compared to some industry peers.
What Could Drive DRQ Stock Higher?
- Increased capital expenditure by oil and gas companies in offshore projects.
- Adoption of new technologies to improve drilling efficiency and reduce costs.
- Expansion of service and aftermarket offerings to generate recurring revenue.
- Potential acquisitions of complementary businesses to expand product portfolio.
What Are the Key Risks for DRQ?
- Rich valuation — a P/E of 34.1 runs well above the Energy sector’s ~17x, leaving little room for a miss.
- Fluctuations in oil and gas prices impacting demand for equipment and services.
- Intense competition from larger equipment manufacturers.
- Regulatory changes impacting offshore drilling activities.
- Technological disruptions from alternative energy sources reducing demand for oil and gas.
- Economic downturns reducing overall energy demand.
What Are the Growth Opportunities for DRQ?
- Expansion in Deepwater Markets: The increasing demand for oil and gas from deepwater sources provides a significant growth opportunity for Dril-Quip. As exploration and production activities move to deeper waters, the demand for specialized equipment like subsea wellheads and production trees will rise. Dril-Quip's expertise in this area positions it to capture a larger share of the deepwater market, estimated to reach $200 billion by 2030. This growth is contingent on sustained high oil prices and continued investment in offshore projects.
- Technological Innovation: Investing in research and development to create more efficient and reliable drilling and production equipment can drive growth. Dril-Quip can focus on developing technologies that reduce operational costs and environmental impact, such as advanced subsea connectors and riser systems. The market for innovative drilling technologies is projected to grow at a rate of 8% annually, reaching $50 billion by 2028. Success in this area will depend on Dril-Quip's ability to secure patents and maintain a technological lead.
- Service and Aftermarket Expansion: Expanding its service and aftermarket offerings, including technical advisory, rework, and reconditioning services, can generate recurring revenue streams. As installed equipment ages, the demand for maintenance and upgrades will increase. Dril-Quip can leverage its existing customer relationships to capture a larger share of the aftermarket services market, estimated at $30 billion annually. This strategy requires building a robust service network and offering competitive pricing.
- Geographic Diversification: Expanding into new geographic markets, particularly in regions with growing offshore oil and gas activities, presents a growth opportunity. Regions like South America and Africa offer untapped potential for Dril-Quip's specialized equipment and services. Entering these markets requires establishing local partnerships and adapting products to meet regional requirements. The global market for oil and gas equipment is expected to reach $400 billion by 2027, with emerging markets contributing significantly to this growth.
- Strategic Acquisitions: Pursuing strategic acquisitions of complementary businesses can expand Dril-Quip's product portfolio and market reach. Acquiring companies with expertise in related areas, such as subsea robotics or data analytics, can enhance Dril-Quip's overall value proposition. The mergers and acquisitions market in the oil and gas sector is active, with numerous opportunities for consolidation. Successful acquisitions require careful due diligence and integration to realize synergies and avoid overpaying.
What Opportunities Does DRQ Have?
- Increasing demand for deepwater exploration and production.
- Growth in emerging markets with offshore oil and gas reserves.
- Adoption of new technologies to improve drilling efficiency.
- Expansion of service and aftermarket offerings.
What Threats Does DRQ Face?
- Fluctuations in oil and gas prices.
- Intense competition from larger equipment manufacturers.
- Regulatory changes impacting offshore drilling activities.
- Technological disruptions from alternative energy sources.
What Are DRQ's Competitive Advantages?
- Specialized Engineering Expertise: Dril-Quip's focus on engineered solutions for deepwater and harsh environments creates a barrier to entry for competitors.
- Strong Customer Relationships: Long-standing relationships with major oil and gas companies provide a competitive advantage.
- Proprietary Technology: Patented technologies and innovative designs protect Dril-Quip's market position.
- Global Service Network: A worldwide service network ensures timely support and maintenance for customers.
What Does DRQ Do?
Founded in 1981 and headquartered in Houston, Texas, Dril-Quip, Inc. has established itself as a key player in the oil and gas equipment and services industry. The company designs, manufactures, sells, and services engineered drilling and production equipment, primarily targeting deepwater, harsh environment, and severe service applications worldwide. Dril-Quip's evolution has been marked by a commitment to providing specialized solutions for complex drilling and production challenges. Its core product offerings include subsea and surface wellheads, subsea and surface production trees, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves, alongside downhole tools. These products are crucial for oil and gas exploration and production from offshore drilling rigs and wells. Beyond manufacturing, Dril-Quip offers technical advisory services, rework and reconditioning services, and rental and purchase options for running tools. The company serves a diverse clientele, including integrated, independent, and foreign national oil and gas companies, drilling contractors, and engineering and construction firms, reaching them through its sales personnel, independent sales agents, and representatives.
What Products and Services Does DRQ Offer?
- Designs and manufactures subsea and surface wellheads.
- Produces subsea and surface production trees.
- Offers mudline hanger systems for offshore drilling.
- Provides specialty connectors and associated pipes.
- Develops drilling and production riser systems.
- Manufactures liner hangers and wellhead connectors.
- Supplies diverters and safety valves.
- Offers downhole tools for well completion.
How Does DRQ Make Money?
- Sells engineered drilling and production equipment directly to oil and gas companies and drilling contractors.
- Provides technical advisory services for equipment installation and maintenance.
- Offers rework and reconditioning services for existing equipment.
- Rents and sells running tools used in the installation and retrieval of its products.
What Industry Does DRQ Operate In?
Dril-Quip operates within the oil and gas equipment and services industry, a sector heavily influenced by global energy demand and commodity prices. The industry is characterized by technological advancements aimed at improving efficiency and reducing environmental impact. Competition is intense, with companies like SEI: Solaris Energy Infrastructure, Inc. vying for market share. Dril-Quip's specialization in deepwater and harsh environments provides a competitive edge, aligning with the increasing need for complex offshore drilling solutions. The sector is projected to grow as energy demands increase, particularly in emerging markets.
Who Are DRQ's Key Customers?
- Integrated oil and gas companies.
- Independent oil and gas companies.
- Foreign national oil and gas companies.
- Drilling contractors.
- Engineering and construction companies.
How Dril-Quip, Inc. Is Valued
Dril-Quip, Inc. carries a market capitalization of $530.91M, placing it in the small-cap category. Relative to its peer group, DRQ's quantitative score of 54/100 is roughly in line with the peer average of 61/100.
Company Profile
Dril-Quip, Inc. operates in the Oil & Gas Equipment & Services industry within the Energy sector. It is headquartered in Houston, US. The company is led by CEO Jeffrey J. Bird. DRQ has traded publicly since 1997.
ROE 5%Key Financial Metrics
Return on equity for Dril-Quip, Inc. stands at 5.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.0%, showing how much profit it generates from its asset base. DRQ trades at a trailing price-to-earnings ratio of 34.09, above the Energy sector average of ~17x. Its free cash flow yield is 8.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 5.10 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 8/9Financial Health
Dril-Quip, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.06 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Dril-Quip, Inc. revenue of about $562.5M for fiscal 2026, with EPS near $1.01.
Net sellingInsider Activity
The most recent 11 insider filings for Dril-Quip, Inc. break down as 4 sales and 7 purchases. On net that is roughly 13K shares disposed (about $447K), a signal worth weighing alongside the fundamentals.
DRQ Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Insider buying has increased recently, indicating confidence from leadership in the company's future.
- Community sentiment has shifted positively, with discussions around potential new contracts and projects gaining traction.
- Analysts are highlighting Dril-Quip's innovative technology, which positions them well in the competitive energy sector.
- Recent news suggests a recovery in oil prices, which could benefit companies like Dril-Quip that supply equipment to the industry.
Bear Case
- Concerns remain about supply chain disruptions impacting production timelines and costs.
- Bearish sentiment is rising in forums, with some investors worried about the overall demand for oil and gas equipment in a shifting energy landscape.
- Recent earnings reports showed mixed results, leading to skepticism about the company's growth trajectory.
- The geopolitical climate continues to create uncertainty for energy stocks, making investors cautious about long-term commitments.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
DRQ Latest News
No recent news available for DRQ.
DRQ Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for DRQ.
Price Targets
Wall Street price target analysis for DRQ.
DRQ MoonshotScore
What does this score mean?
The MoonshotScore rates DRQ's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Jeffrey J. Bird
CEO
Jeffrey J. Bird serves as the Chief Executive Officer of Dril-Quip, Inc. His career spans several decades in the energy sector, with significant experience in leadership roles. Before joining Dril-Quip, Bird held various executive positions at other oil and gas companies, focusing on operations, engineering, and business development. He brings a wealth of knowledge in the design, manufacturing, and servicing of drilling and production equipment. Bird's expertise is crucial for guiding Dril-Quip through the evolving energy landscape.
Track Record: Under Jeffrey J. Bird's leadership, Dril-Quip has focused on maintaining its market position in the deepwater and harsh environment sectors. He has overseen efforts to streamline operations and improve profitability. Key milestones include navigating the challenges of fluctuating oil prices and adapting to changing market demands. Bird has emphasized innovation and customer service to drive long-term growth.
What Investors Ask About Dril-Quip, Inc. (DRQ) — Energy
What does Dril-Quip, Inc. do?
Dril-Quip, Inc. specializes in designing, manufacturing, and servicing engineered drilling and production equipment for the oil and gas industry. The company's primary focus is on deepwater, harsh environment, and severe service applications. Its product portfolio includes subsea and surface wellheads, production trees, riser systems, and specialty connectors. Dril-Quip serves integrated, independent, and foreign national oil and gas companies, as well as drilling contractors, providing critical equipment and services for offshore exploration and production.
What do analysts say about DRQ stock?
Analyst consensus on DRQ stock is mixed, reflecting the inherent volatility of the oil and gas sector. Key valuation metrics, such as the P/E ratio of 34.1, suggest that the stock is trading at a premium compared to some peers. Growth considerations include the company's ability to capitalize on increasing deepwater exploration activities and expand its service offerings. Investors should carefully consider the risks associated with fluctuating oil prices and intense competition before investing in DRQ.
What are the main risks for DRQ?
The main risks for Dril-Quip, Inc. include fluctuations in oil and gas prices, which can significantly impact demand for its equipment and services. Intense competition from larger equipment manufacturers poses a threat to market share. Regulatory changes impacting offshore drilling activities could also negatively affect the company's operations. Additionally, technological disruptions from alternative energy sources could reduce long-term demand for oil and gas, impacting Dril-Quip's growth prospects. Economic downturns can also reduce overall energy demand, affecting Dril-Quip's revenue.
How does Dril-Quip, Inc. manage its exposure to fluctuating oil prices?
Dril-Quip, Inc. mitigates its exposure to fluctuating oil prices through several strategies. These include maintaining a diversified product portfolio, focusing on long-term service contracts, and managing its cost structure to remain competitive even during periods of low oil prices. The company also emphasizes innovation and technological advancements to improve efficiency and reduce operational costs for its customers, making its products and services more attractive regardless of short-term price fluctuations. Additionally, Dril-Quip strategically targets deepwater and harsh environment projects, which tend to be less sensitive to short-term price volatility due to their long-term nature and high initial investment.
What are Dril-Quip, Inc.'s environmental and sustainability commitments?
Dril-Quip, Inc. is increasingly focused on environmental and sustainability commitments, recognizing the growing importance of ESG factors in the oil and gas industry. The company is actively working to reduce its carbon footprint through energy-efficient manufacturing processes and the development of environmentally friendly products. Dril-Quip also emphasizes safety and operational excellence to minimize the risk of environmental incidents. While specific ESG targets and carbon reduction plans are not explicitly detailed in the provided data, the company's commitment to innovation and efficiency suggests an ongoing effort to improve its environmental performance and align with industry best practices.
What are the key factors to evaluate for DRQ?
Dril-Quip, Inc. (DRQ) holds an AI score of 54/100 (moderate). P/E: 34.1x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does DRQ data refresh on this page?
DRQ prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven DRQ's recent stock price performance?
Dril-Quip, Inc. (DRQ) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Specialization in deepwater and harsh environment equipment. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on provided source data and may not reflect the most current developments.
- Financial metrics are based on available data and may be subject to change.