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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Drilling Tools International's annualized net income for the quarter that ended in Jun. 2026 was $-7.2 Mil. Drilling Tools International's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $67.2 Mil. Therefore, Drilling Tools International's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was -10.66%.
The historical rank and industry rank for Drilling Tools International's Return-on-Tangible-Equity or its related term are showing as below:
DTI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.41 Med: 19.53 Max: 70.74
Current: -4.48
During the past 5 years, Drilling Tools International's highest Return-on-Tangible-Equity was 70.74%. The lowest was -5.41%. And the median was 19.53%.
DTI's Return-on-Tangible-Equity is ranked worse than 74.71% of 949
companies
in the Oil & Gas industry
Industry Median: 8.4
vs DTI: -4.48
Drilling Tools International (NAS:DTI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Drilling Tools International Return-on-Tangible-Equity Related Terms
Drilling Tools International Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Drilling Tools International Return-on-Tangible-Equity Chart
DTI vs LSE, DWSN, GEOS: Return-on-Tangible-Equity Comparison
For the Oil & Gas Equipment & Services subindustry, Drilling Tools International's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Drilling Tools International Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Drilling Tools International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Drilling Tools International's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -10.66% mean?
Drilling Tools International (DTI) has a Return-on-Tangible-Equity of -10.66% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Drilling Tools International and its competitors. According to the industry distribution chart, Drilling Tools International ranks #709 out of 949 companies in the Oil & Gas industry, placing it in the top 74.7%.
Is Drilling Tools International's Return-on-Tangible-Equity too high?
Drilling Tools International's current Return-on-Tangible-Equity is -10.66%. Based on the distribution chart, Drilling Tools International ranks #709 out of 949 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Drilling Tools International has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Drilling Tools International's Return-on-Tangible-Equity compare to LSE and DWSN?
According to the Oil & Gas industry distribution chart, Drilling Tools International ranks #709 out of 949 companies for Return-on-Tangible-Equity. This places Drilling Tools International in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.40. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 8.40, based on 949 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Drilling Tools International and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drilling Tools International's current Return-on-Tangible-Equity is -10.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drilling Tools International stock overvalued right now?
Based on GuruFocus' analysis, Drilling Tools International (DTI) is currently considered Fairly Valued. The stock's GF Value™ is $2.69, compared to a current price of $2.58 — trading 4.1% below its estimated fair value. The current Return-on-Tangible-Equity is -10.66%. Drilling Tools International's overall GF Score™ is 63/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Drilling Tools International (DTI), the current Return-on-Tangible-Equity is -10.66% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Drilling Tools International (DTI) Overvalued in 2026?
Based on GuruFocus' analysis, Drilling Tools International stock appears to be undervalued.
The current stock price of $2.58 is trading 4.1% below its estimated GF Value™ of $2.69.
GuruFocus considers Drilling Tools International to be Fairly Valued.
Key valuation signals for DTI:
Return-on-Tangible-Equity: -10.66%
GF Value™: $2.69 vs. price of $2.58 (4.1% below fair value)
No single metric tells the full story. See the DTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Drilling Tools International Corp is an oilfield services company that designs, engineers, and manufactures rental-focused tools used in onshore and offshore horizontal and directional drilling operations, as well as solutions across the well life cycle. It operates through two geographic segments: Western Hemisphere and Eastern Hemisphere. The Western Hemisphere, which generates the majority of revenue, provides downhole drilling tools and rental services for onshore and offshore operations across North America and Latin America, supported by service centers in the U.S. and Canada. The Eastern Hemisphere covers Europe, the Middle East, and Asia-Pacific, where the company offers drilling and well lifecycle solutions through international service centers across the EMEA and APAC regions.
63GF Score
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