Akita Drilling Ltd. (AKT.A) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

PHX Energy Services Corp.

Akita Drilling Ltd.

Cathedral Energy Services Ltd.

Major Drilling Group International, Inc.

Precision Drilling Corp.

Western Energy Services Corp.

High Arctic Energy Services, Inc.

Ensign Energy Services, Inc.

Sonoro Energy Ltd.

Why is Akita Drilling Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.95%

The company has declared positive results in Dec'2024 after 4 consecutive negative quarters

NET PROFIT(HY) At CAD 10.84 MM has Grown at 456.87%
OPERATING CASH FLOW(Y) Highest at CAD 52.53 MM
DEBT-EQUITY RATIO (HY) Lowest at 16.61 %

With ROE of 12.20%, it has a attractive valuation with a 0.42 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 38.62%, its profits have risen by 354.1% ; the PEG ratio of the company is 0

Majority shareholders : FIIs

Market Beating Performance

The stock has generated a return of 38.62% in the last 1 year, much higher than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Akita Drilling Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Akita Drilling Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Akita Drilling Ltd.

20.73%

3.02

42.83%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.32%

EBIT Growth (5y)

23.19%

EBIT to Interest (avg)

-0.78

Debt to EBITDA (avg)

4.85

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.93

Tax Ratio

34.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

2.95%

ROE (avg)

5.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.44

EV to EBIT

7.93

EV to EBITDA

2.68

EV to Capital Employed

0.52

EV to Sales

0.49

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

6.54%

ROE (Latest)

12.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

NET PROFIT(HY)

At CAD 10.84 MM has Grown at 456.87%

OPERATING CASH FLOW(Y)

Highest at CAD 52.53 MM

DEBT-EQUITY RATIO (HY)

Lowest at 16.61 %

RAW MATERIAL COST(Y)

Fallen by -147.61% (YoY

CASH AND EQV(HY)

Highest at CAD 22.08 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.53%

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD 0.13 MM has Fallen at -94.66%

NET PROFIT(Q)

At CAD 2.15 MM has Fallen at -55.98%

Here's what is working for Akita Drilling Ltd.

Operating Cash Flow

Highest at CAD 52.53 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 16.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at CAD 22.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.53%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -147.61% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 7.09 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Akita Drilling Ltd.

Pre-Tax Profit

At CAD 0.13 MM has Fallen at -94.66%

over average net sales of the previous four periods of CAD 2.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 2.15 MM has Fallen at -55.98%

over average net sales of the previous four periods of CAD 4.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)