Stampede Drilling Inc (SDI) AI Stock Analysis

• Market Cap: C$28.43M
• Dividend Yield: N/A
• Average Volume (3M): 128.09K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.38
• Revenue Growth: -4.52%
• EPS Growth: -47.45%
• Country: CA
• Employees: 258
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.02
• Shares Outstanding: 203,066,590
• 10 Day Avg. Volume: 19,716
• 30 Day Avg. Volume: 128,093
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Stampede Drilling Inc exhibits strong revenue growth and a solid balance sheet, which are positive indicators for long-term performance. However, the decline in net profit margin and cash flow volatility are significant concerns. Technical analysis suggests a bearish trend, but the valuation appears attractive due to a low P/E ratio. The recent strategic sale of equipment and share buyback program could improve financial flexibility and shareholder value.

Stampede Drilling Inc Business Overview & Revenue Model

Company Description

Stampede Drilling Inc. (SDI) is a Canadian-based drilling company primarily engaged in the oil and gas sector. It offers land-based drilling services across Western Canada, focusing on efficient and reliable rig operations. The company is known for its modern fleet of drilling rigs, which are equipped with advanced technology to meet the demanding needs of its clients in the energy industry.

How the Company Makes Money

Stampede Drilling Inc. generates revenue by providing drilling services to oil and gas exploration and production companies. Its key revenue stream is derived from contracts with these companies, where it charges for the deployment and operation of its drilling rigs on a day-rate basis. The company's earnings are significantly influenced by the overall activity level in the oil and gas sector, as well as by the demand for its advanced drilling technologies. Additionally, SDI's partnerships with major energy firms and its reputation for high operational standards contribute to its ability to secure long-term contracts and sustain its revenue.

Stampede Drilling Inc Financial Statement Overview

Summary

Stampede Drilling Inc exhibits strong revenue growth and improved operational efficiency. However, the decline in net profit margin and cash flow volatility require attention. The balance sheet demonstrates financial stability with low leverage and a strong equity position.

Income Statement

Stampede Drilling Inc has demonstrated strong revenue growth over the years, with a significant increase from $14.39M in 2020 to $82.07M in 2024. The gross profit margin has improved, indicating better cost management, reaching 22.35% in 2024. However, the net profit margin declined from 12.27% in 2023 to 6.29% in 2024, reflecting potential challenges in managing expenses or a less favorable revenue mix. The EBIT and EBITDA margins remain healthy, indicating strong operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, standing at 0.21 in 2024, suggesting a conservative approach to leverage. The equity ratio is strong at 72.33%, reflecting a robust capital structure. Return on Equity (ROE) decreased from 12.75% in 2023 to 5.90% in 2024, indicating reduced profitability relative to equity. Overall, the balance sheet reflects financial stability with room for improvement in asset utilization.

Cash Flow

Stampede Drilling Inc experienced volatility in free cash flow, which decreased from $6.23M in 2023 to $4.09M in 2024. The operating cash flow to net income ratio has been strong, but the free cash flow to net income ratio indicates challenges in converting net income into free cash flow. The company needs to focus on optimizing capital expenditure and enhancing operational efficiencies to improve cash flow stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
82.07M	85.96M	66.88M	32.16M	14.39M
	Gross Profit
18.34M	22.05M	17.83M	7.86M	426.00K
	EBIT
18.81M	12.39M	9.54M	3.46M	-2.62M
	EBITDA
16.21M	19.36M	14.20M	8.01M	1.48M
	Net Income Common Stockholders
5.16M	10.55M	8.21M	2.08M	-4.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
756.00K	3.52M	703.00K	665.00K	684.00K
	Total Assets
120.79M	118.57M	108.28M	50.76M	47.78M
	Total Debt
18.53M	21.05M	22.02M	11.82M	13.45M
	Net Debt
17.77M	17.53M	21.31M	11.16M	12.76M
	Total Liabilities
27.80M	30.24M	29.80M	14.58M	15.01M
	Stockholders Equity
87.39M	82.72M	72.83M	36.18M	32.77M
Cash Flow		Free Cash Flow
4.09M	6.23M	-30.97M	2.01M	1.38M
	Operating Cash Flow
18.73M	20.68M	10.15M	6.09M	4.89M
	Investing Cash Flow
-17.20M	-13.28M	-42.18M	-3.83M	-5.32M
	Financing Cash Flow
-4.31M	-4.56M	32.08M	-2.28M	786.00K

Stampede Drilling Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SDI, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SDI.

Stampede Drilling Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHX	71 Outperform	C$343.12M	6.43	25.28%	10.65%	0.51%	-40.79%
SDI	67 Neutral	C$28.43M	5.67	6.08%	―	-4.52%	-47.45%
AKT.A	64 Neutral	C$65.00M	5.03	7.86%	―	-14.26%	-30.29%
Sector *	56 Neutral	$6.93B	3.42	-4.86%	5.94%	-0.08%	-48.18%
WRG	54 Neutral	C$71.92M	―	-2.16%	―	6.43%	35.87%
ESI	53 Neutral	C$336.97M	14.37	-1.55%	―	-6.00%	-150.20%

Stampede Drilling Inc Corporate Events

Stampede Drilling Boosts Cash Flow with $5 Million Equipment Sale

Stampede Drilling Inc. has announced the sale of certain drilling components from an A/C triple drilling rig to a private company for $5 million in cash and additional equipment valued at $290,000. This strategic move is expected to enhance Stampede’s cash flow, allowing for potential equipment upgrades, debt reduction, or further stock repurchases. The transaction reflects a proactive approach to monetize assets without incurring significant capital expenditures, thereby improving the return on investment from previous acquisitions.

Spark’s Take on TSE:SDI Stock

According to Spark, TipRanks’ AI Analyst, TSE:SDI is a Outperform.

Stampede Drilling Inc’s overall stock score reflects solid financial performance, with strong revenue growth and a robust balance sheet. However, cash flow volatility and a decline in net profit margin pose challenges. The technical analysis suggests a bearish trend, but the valuation indicates potential undervaluation. Recent corporate events highlight financial declines, yet the share buyback program suggests confidence in long-term value.

To see Spark’s full report on TSE:SDI stock, click here.

Stampede Drilling Inc. Reports Decline in 2024 Financial Results

Stampede Drilling Inc. reported a decline in its financial performance for the fourth quarter and full year of 2024, with decreases in revenue, net income, and adjusted EBITDA compared to the previous year. The company attributed these declines to reduced operating days, increased costs, and challenges such as customer drilling program deferrals. Despite these setbacks, Stampede continued its share repurchase program, canceling a portion of its outstanding shares, which may indicate a focus on returning value to shareholders.