In the world of growth stocks, NYSE:NE shines as a value proposition.

Last update: Nov 9, 2023

NOBLE CORP PLC (NYSE:NE) has caught the eye of our stock screener as an affordable growth stock. NYSE:NE is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

How We Gauge Growth for NYSE:NE

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:NE was assigned a score of 7 for growth:

NE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1750.00%, which is quite impressive.
Looking at the last year, NE shows a very strong growth in Revenue. The Revenue has grown by 130.63%.
The Earnings Per Share is expected to grow by 85.97% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 35.93% on average over the next years. This is a very strong growth
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Analyzing Valuation Metrics

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:NE has achieved a 5 out of 10:

Based on the Price/Forward Earnings ratio of 7.96, the valuation of NE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NE indicates a somewhat cheap valuation: NE is cheaper than 63.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.80, NE is valued rather cheaply.
NE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NE's earnings are expected to grow with 85.97% in the coming years.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:NE has earned a 5 out of 10:

NE has an Altman-Z score of 3.56. This indicates that NE is financially healthy and has little risk of bankruptcy at the moment.
NE's Altman-Z score of 3.56 is fine compared to the rest of the industry. NE outperforms 80.00% of its industry peers.
NE has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
NE's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. NE outperforms 67.69% of its industry peers.
With a decent Quick ratio value of 1.82, NE is doing good in the industry, outperforming 75.38% of the companies in the same industry.

Exploring NYSE:NE's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NE has achieved a 5:

NE has a better Return On Assets (6.59%) than 70.77% of its industry peers.
NE's Return On Invested Capital of 7.80% is fine compared to the rest of the industry. NE outperforms 61.54% of its industry peers.
With an excellent Profit Margin value of 15.73%, NE belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
Looking at the Operating Margin, with a value of 21.23%, NE belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
The Gross Margin of NE (37.14%) is better than 73.85% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of NE

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.