AKITA Drilling Ltd

AKITA Drilling Ltd maintains a liquidity position with a current ratio of 2.48, indicating the company can cover its short-term liabilities with its short-term assets. The company's debt-to-equity ratio is 0.44, suggesting a relatively conservative capital structure with a moderate level of leverage. Free cash flow stands at 6.57 million CAD, which supports operational flexibility and potential reinvestment.

Profitability metrics show a return on equity of 1.65% and a return on assets of 1.02%, both below the industry median for Energy Equipment & Services firms. This suggests that AKITA Drilling Ltd is underperforming in terms of capital efficiency and asset utilization compared to its peers.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic and regulatory risks.

Growth trajectory appears modest, with no significant revenue growth reported in the latest financial period. Analysts have assigned a mean price target of 4.00 CAD, with a "hold" recommendation, indicating limited upside potential in the near term.

Risk factors include a medium liquidity risk due to a current ratio above 2.0, but with net cash being negative after subtracting total debt. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments.

Recent events include a single analyst "hold" recommendation, with no strong buy or buy ratings. No recent filings or transcripts have been disclosed that would indicate significant operational or strategic changes.

Revenue grew at a 16.2% CAGR over four years, demonstrating strong top-line expansion for the drilling company.

Long-term debt decreased significantly from $95.3 million in 2023 to $36.3 million in 2026, strengthening the balance sheet.

The debt-to-equity ratio of 0.44 is well below the cohort median of 0.73, indicating lower financial leverage risk.

Cash conversion of 2.64 exceeds the cohort median of 1.38, highlighting superior efficiency in generating cash from earnings.

Operating margin of 0.65% is significantly below the cohort median of 4.74%, indicating weak operational profitability relative to peers.

The company faces high credit risk according to risk flags, which may increase borrowing costs or limit access to capital.

Return on invested capital is merely 0.13%, indicating minimal value creation above the cost of capital.

Revenue C$41.6M, −33,8% YoY; Operating income −106,0% YoY.

• ▍Revenue C$41.6M, −33,8% YoY
• ▍Operating income −106,0% YoY
• ▍Net income −85,0% YoY
• ▍Free cash flow −90,1% YoY
• ▍Net margin 3.5%

Revenue C$44.6M, −2,7% YoY; Operating income +1 090,6% YoY.

• ▍Revenue C$44.6M, −2,7% YoY
• ▍Operating income +1 090,6% YoY
• ▍Net income +39,7% YoY
• ▍Free cash flow −740,9% YoY
• ▍Net margin 3.5%

Revenue C$49.6M, +29,3% YoY; Operating income +122,0% YoY.

• ▍Revenue C$49.6M, +29,3% YoY
• ▍Operating income +122,0% YoY
• ▍Net income +580,5% YoY
• ▍Free cash flow +316,5% YoY
• ▍Net margin 4.6%

Revenue C$65.1M, +40,6% YoY; Operating income +2 240,6% YoY.

• ▍Revenue C$65.1M, +40,6% YoY
• ▍Operating income +2 240,6% YoY
• ▍Net income +228,6% YoY
• ▍Free cash flow +29,7% YoY
• ▍Net margin 13.3%

Revenue C$62.9M; Operating income C$6.3M.

• ▍Revenue C$62.9M
• ▍Operating income C$6.3M
• ▍Net margin 15.3%

Revenue C$45.8M; Operating income -C$32.0k.

• ▍Revenue C$45.8M
• ▍Operating income -C$32.0k
• ▍Net margin 2.4%

Revenue C$38.3M; Operating income -C$1.9M.

• ▍Revenue C$38.3M
• ▍Operating income -C$1.9M
• ▍Net margin -1.2%

Revenue C$46.3M; Operating income C$303.0k.

• ▍Revenue C$46.3M
• ▍Operating income C$303.0k
• ▍Net margin 5.7%

Revenue C$200.9M, +3,9% YoY; Operating income +60,5% YoY.

• ▍Revenue C$200.9M, +3,9% YoY
• ▍Operating income +60,5% YoY
• ▍Net income +8,2% YoY
• ▍Free cash flow −12,9% YoY
• ▍Net margin 6.9%

Revenue C$193.3M, −14,3% YoY; Operating income −66,4% YoY.

• ▍Revenue C$193.3M, −14,3% YoY
• ▍Operating income −66,4% YoY
• ▍Net income −30,1% YoY
• ▍Free cash flow −46,3% YoY
• ▍Net margin 6.7%

Revenue C$225.5M, +12,2% YoY; Operating income +220,8% YoY.

• ▍Revenue C$225.5M, +12,2% YoY
• ▍Operating income +220,8% YoY
• ▍Net income +329,4% YoY
• ▍Free cash flow +32,7% YoY
• ▍Net margin 8.2%

Revenue C$201.0M, +82,6% YoY; Operating income +120,7% YoY.

• ▍Revenue C$201.0M, +82,6% YoY
• ▍Operating income +120,7% YoY
• ▍Net income +120,4% YoY
• ▍Free cash flow +330,8% YoY
• ▍Net margin 2.1%