NPK International

NPKI

Oil & Gas Equipment & Services · Energy

Price

$14.34

+0.06 (+0.42%)

Market Cap

$1.21B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−6.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 91.5M (2021) → 85.7M (2025)

NPK International makes equipment used in oil and gas drilling. Its core products include drilling jars, shock tools, and other downhole tools — devices that go deep inside oil wells to help drill more efficiently and solve problems underground. The company sells to oilfield service companies and drilling contractors around the world.

NPK earns revenue by selling and renting this specialized equipment to customers who need it for active drilling projects. It operates globally, with exposure to both North American and international drilling markets. The company's moat comes from its technical expertise and the high cost of switching to a different tool supplier mid-project. The main risk is that NPK's revenue is closely tied to drilling activity levels, which rise and fall with oil prices — when energy companies cut budgets, demand for drilling tools drops quickly.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+30.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+40.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

5.0%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$5M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

NPK International grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

37.7%

Modest — 37.7% gross margin

Operating Margin

17.3%

Healthy — 17.3% operating margin

ROCE

3.4%

Weak — 3.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+27.4%

Fast-growing sales (27.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

199%

Turns 199% of profit into real cash

FCF Margin

9.5%

Modest free cash flow (9.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.08

Conservative — low debt load (0.08)

Interest Cover

3594.31x

Comfortably covers interest (3594.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

33.6x

Pricey — P/E 33.6

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+3.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (33.6 → 30.0)

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Dividends

Not applicable for this business.

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