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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Drilling Tools International's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 0.64%.
As of today (2026-09-09), Drilling Tools International's WACC % is 3.37%. Drilling Tools International's ROC % is 1.69% (calculated using TTM income statement data).
Drilling Tools International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Drilling Tools International (NAS:DTI) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Drilling Tools International's WACC % is 3.37%. Drilling Tools International's ROC % is 1.69% (calculated using TTM income statement data).
Drilling Tools International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Drilling Tools International ROC % Related Terms
Drilling Tools International ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (DTI) has a ROC % of 0.64% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Drilling Tools International and its competitors.
Is Drilling Tools International's ROC % too high?
Drilling Tools International's current ROC % is 0.64%. The Oil & Gas industry median ROC % is 4.33. Drilling Tools International's value of 0.64% is 85.2% below this industry median. 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 ROC % compare to LSE and DWSN?
Drilling Tools International's ROC % of 0.64% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 4.33. Drilling Tools International's value of 0.64% is 85.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Oil & Gas company?
The median ROC % among Oil & Gas companies is 4.33, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Drilling Tools International's current ROC % of 0.64% is 85.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Drilling Tools International and its competitors. For the Oil & Gas industry, the median ROC % is 4.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drilling Tools International's current ROC % is 0.64%. 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 4.3% below its estimated fair value. The current ROC % is 0.64% and 85.2% below the Oil & Gas industry median of 4.33. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Drilling Tools International (DTI), the current ROC % is 0.64% 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 4.3% below its estimated GF Value™ of $2.69.
GuruFocus considers Drilling Tools International to be Fairly Valued.
Key valuation signals for DTI:
ROC %: 0.64%
GF Value™: $2.69 vs. price of $2.58 (4.3% below fair value)
Industry Position: 85.2% below the Oil & Gas median
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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