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ZYBERNO

Stock Report

Updated Aug 31, 2026

DRILLING TOOLS INTERNATIONAL CORPORATION (DTI)

Technology • NASDAQ

$2.50

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

26.0/100

POOR BUSINESS

DRILLING TOOLS INTERNATIONAL CORPORATION (DTI) scores 26/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full DTI quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full DTI valuation analysis · → View full DTI Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-5.9%)

Debt-to-Equity (Solvency Risk):GOOD (0.42x)

Operating Margin (Operational Efficiency):CRITICAL (-4.4%)

Return on Capital (Capital Efficiency):CRITICAL (-2.9%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

DRILLING TOOLS INTERNATIONAL CORPORATION (DTI) stock report — Zyberno Score 26/100 (POOR BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, DTI generated -$6.98M in Owner Earnings. Capital was deployed as follows: $706.00K returned via share buybacks, $22.79M invested in capital expenditures. Reinvestment rate: 29.7%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:2.50

Market Cap:$88.19M

Valuation Multiples (3)

P/B Ratio:0.74x

P/S Ratio:0.58x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$145.82M

Ev Ebitda Ratio:6.43x

Price Action & Momentum (3)

12-1 Momentum:

+9.6% (15th pctile)

📈 Click to view full DTI Momentum analysis →

Momentum Percentile:15 / 100

% of 52-Week High:53.3%

B. Profitability Assessment

Return Metrics (5)

ROE:

-5.9%

📊 Click to view full DTI ROE analysis →

ROA:-3.1%

Roic:

-2.9%

📊 Click to view full DTI ROIC analysis →

Reinvestment Rate:29.7%

Fundamental Growth Rate (g):-0.9%

Margin Analysis (3)

Operating Margin Ttm:-4.4%

Net Margin Ttm:-4.6%

Ebitda Margin:14.8%

TTM Performance (2)

Operating Margin Ttm:-4.4%

Net Margin Ttm:-4.6%

Yield Metrics (2)

Earnings Yield:-$8.13

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.59

📊 Click to view full DTI Earnings Surprise analysis →

EPS Surprise vs Expected:60.7%

Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-5.1%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):41.9%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):-10.1%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-50.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.18x

Quick Ratio:1.58x

Cash Ratio:0.07x

Leverage Analysis (3)

Debt To Equity Ttm:0.42x

Debt-to-Equity Ratio:0.42x

Debt To Ebitda:2.65x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:39,914,000.00

Cash And Cash Equivalents:2,520,000.00

Long Term Debt:$54.22M

Net Debt:$57.63M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $153.36M

Linear Growth: -5.1%

📊 Click to view full DTI Revenue analysis & methodology →

Cost Of Revenue Ttm:$38.49M

Profitability Breakdown (2)

$0.00

Operating income TTM: -$6.82M

Linear Growth: -50.0%

📊 Click to view full DTI Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$7.09M

Linear Growth: 41.9%

📊 Click to view full DTI Net Income analysis & methodology →

Income Before Tax:-$6.82M

Ebitda Ttm:22,681,000.00

Operating Expenses (5)

Operating Expenses:161,817,000.00

R And D Expense:0.00

Sga Expense:79,729,000.00

Income Tax Expense:$272.00K

Interest Expense:-8,312,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:209.4%

Ebitda Margin:14.8%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$228.59M

Current Assets:$73.79M

Ppe Net:235,384,000.00

Goodwill:14,543,000.00

Intangible Assets:$38.14M

Liability Structure (4)

Total Liabilities:108,870,000.00

Current Liabilities:33,874,000.00

Long Term Debt:$54.22M

Short Term Debt:$5.93M

Equity & Capital (3)

Equity:$119.72M

Retained Earnings:-$10.67M

Common Stock:125,000,000.00

Working Capital Items (3)

Accounts Receivable:43,494,000.00

Inventory:20,160,000.00

Accounts Payable:14,544,000.00

Special Items (2)

Contract Liabilities:1,062,000.00

Stock Based Compensation:719,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $14.33M

Linear Growth: -10.1%

-$8.46M

Investment Activities (2)

Investing Cash Flow:-$2.97M

Capital Expenditures Ttm:22,791,000.00

Financing Activities (3)

Financing Cash Flow:$5.28M

Dividends Paid Ttm:0.00

Stock Repurchase:706,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$1.25M

Non-Cash Items (1)

Depreciation Amortization Ttm:29,500,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.20

Eps diluted TTM: -$0.20

Linear Growth: 28.2%

📊 Click to view full DTI EPS analysis & methodology →

Earnings Per Share Ttm:-$0.20

Revenue & Cash Per Share (2)

Sales Per Share Ttm:4.35

Operating Cash Flow Per Share:$0.56

Book Value & Capital (2)

Book Value Per Share:$3.39

Cash Per Share:0.07

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.68x

Working Capital Turnover Ttm:3.84x

Receivables Management (2)

Receivables Turnover Ttm:3.53x

Days Sales Outstanding Ttm:103.52

Inventory Management (2)

Inventory Turnover Ttm:1.91x

Days Inventory Outstanding Ttm:191.17

Payables & Cash Cycle (2)

Days Payable Outstanding:137.92

Cash Conversion Cycle:156.77

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00

Quality Score:50.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$6.98M

Damodaran Growth Analysis (2)

Reinvestment Rate:29.7%

Fundamental Growth Rate (g):-0.9%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-5.1%

Net Income Growth Rate (Linear):41.9%

Operating Income Growth Rate (Linear):-50.0%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):-10.1%

Other Growth Rates (1)

Book Value Growth Rate (Linear):100.0%

C. Company Profile & Context

Corporate Information (6)

Symbol:DTI

Company Name:DRILLING TOOLS INTERNATIONAL CORPORATION

Sector:Technology

Industry:Oil & Gas Field Machinery & Equipment

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:35.28M

Shares Outstanding Basic:35.28M

Shares Outstanding Diluted:35.28M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 19:29:57 UTC

Data Timestamp:2026-08-19T19:46:23.674372