SDPI Lacks A Stable Balance Sheet Structure
Superior Drilling Products' (SDPI) larger-diameter DnR tools can see improved margin in the medium-to-long term. The company's EBITDA margin contracted in Q4 2019, but I expect the amortization expense to fall in the medium term, which would ease the pressure on margin. The decision to reduce executives' pay and other cost-cutting measures will be critical to managing the current energy market downturn. Nonetheless, I think the issue of corporate governance related to the executive pay structure is not over yet. It also faces the risks of