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"We rate PARKER DRILLING CO (PKD) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PKD's debt-to-equity ratio of 0.93 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that PKD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.12 is high and demonstrates strong liquidity.
- PKD, with its decline in revenue, underperformed when compared the industry average of 14.6%. Since the same quarter one year prior, revenues slightly dropped by 0.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has decreased by 23.8% when compared to the same quarter one year ago, dropping from $10.17 million to $7.75 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, PARKER DRILLING CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PARKER DRILLING CO is currently lower than what is desirable, coming in at 30.93%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.18% trails that of the industry average.
- You can view the full analysis from the report here: PKD Ratings Report