We started the process of determining a valid price forecast for Superior Drilling Products Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Superior Drilling Products Inc ranked in the 12th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 87%. In terms of the factors that were most noteworthy in this DCF analysis for SDPI, they are:
The company's compound free cash flow growth rate over the past 5.62 years comes in at -0.16%; that's greater than only 10.25% of US stocks we're applying DCF forecasting to.
As a business, Superior Drilling Products Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Superior Drilling Products Inc? See CLMT, FET, VTNR, CLB, and CRC.
SDPI Lacks Growth Catalysts Source Superior Drilling Products' (SDPI) top-line in Q2 was the lowest in the past four years as the U.S. energy activity plummeted following the pandemic this year. While the completions activity may have neared a trough in Q3, the international activity front, which supported the company...
Badsha Chowdhury on Seeking Alpha | September 1, 2020