DO Fundamental Analysis - DIAMOND OFFSHORE DRILLING IN

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to DO. DO was compared to 61 industry peers in the Energy Equipment & Services industry. DO may be in some trouble as it scores bad on both profitability and health. DO is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

DO had negative earnings in the past year.

In the past year DO had a positive cash flow from operations.

DO had negative earnings in each of the past 5 years.

Of the past 5 years DO 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -16.02%, DO is doing worse than 93.55% of the companies in the same industry.

DO has a worse Return On Equity (-40.18%) than 88.71% of its industry peers.

DO's Return On Invested Capital of 5.04% is in line compared to the rest of the industry. DO outperforms 43.55% of its industry peers.

		Industry Rank	Sector Rank
ROA	-16.02%
ROE	-40.18%
ROIC	5.04%

ROA(3y)-49.69%

ROA(5y)-36.11%

ROE(3y)-100.26%

ROE(5y)-75.03%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

DO has a Operating Margin (8.50%) which is in line with its industry peers.

DO's Gross Margin of 26.82% is in line compared to the rest of the industry. DO outperforms 48.39% of its industry peers.

In the last couple of years the Gross Margin of DO has declined.

		Industry Rank	Sector Rank
OM	8.5%
PM (TTM)	N/A
GM	26.82%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y28.03%

GM growth 5Y-6.9%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

Compared to 1 year ago, DO has more shares outstanding

Compared to 5 years ago, DO has less shares outstanding

The debt/assets ratio for DO is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.56, we must say that DO is in the distress zone and has some risk of bankruptcy.

DO has a Altman-Z score of 1.56. This is comparable to the rest of the industry: DO outperforms 40.32% of its industry peers.

DO has a Debt/Equity ratio of 0.95. This is a neutral value indicating DO is somewhat dependend on debt financing.

DO has a worse Debt to Equity ratio (0.95) than 77.42% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.95
Debt/FCF	N/A
Altman-Z	1.56

ROIC/WACC0.71

WACC7.12%

2.3 Liquidity

DO has a Current Ratio of 1.77. This is a normal value and indicates that DO is financially healthy and should not expect problems in meeting its short term obligations.

DO's Current ratio of 1.77 is in line compared to the rest of the industry. DO outperforms 41.94% of its industry peers.

DO has a Quick Ratio of 1.77. This is a normal value and indicates that DO is financially healthy and should not expect problems in meeting its short term obligations.

DO has a Quick ratio of 1.77. This is in the better half of the industry: DO outperforms 74.19% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.77
Quick Ratio	1.77

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

DO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -452.27%.

DO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.12%.

DO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.50% yearly.

EPS 1Y (TTM)-452.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%325%

Revenue 1Y (TTM)11.12%

Revenue growth 3Y12.91%

Revenue growth 5Y-0.5%

Sales Q2Q%-9.34%

3.2 Future

DO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.64% yearly.

DO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.

EPS Next Y118.19%

EPS Next 2Y65.87%

EPS Next 3Y43.64%

EPS Next 5YN/A

Revenue Next Year-3.83%

Revenue Next 2Y3.49%

Revenue Next 3Y3.86%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DO. In the last year negative earnings were reported.

DO is valuated cheaply with a Price/Forward Earnings ratio of 6.80.

85.48% of the companies in the same industry are more expensive than DO, based on the Price/Forward Earnings ratio.

When comparing the Price/Forward Earnings ratio of DO to the average of the S&P500 Index (23.04), we can say DO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	6.8

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DO indicates a slightly more expensive valuation: DO is more expensive than 70.97% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.23

4.3 Compensation for Growth

DO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

DO's earnings are expected to grow with 43.64% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y65.87%

EPS Next 3Y43.64%

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5. Dividend

5.1 Amount

No dividends for DO!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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DIAMOND OFFSHORE DRILLING IN

NYSE:DO (9/3/2024, 8:04:01 PM)

After market: 13.99 0 (0%)

13.99

-0.35 (-2.44%)

Chartmill FA Rating

GICS SectorEnergy

GICS IndustryGroupEnergy

GICS IndustryEnergy Equipment & Services

Earnings (Last)08-06 2024-08-06/amc

Earnings (Next)11-04 2024-11-04/amc

Inst Owners0.02%

Inst Owner Change0%

Ins Owners70.89%

Ins Owner Change0%

Market Cap1.44B

Analysts86.67

Price Target19.79 (41.46%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly Dividend0

Dividend Growth(5Y)N/A

DP0%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)4093.42%

Min EPS beat(2)-3.77%

Max EPS beat(2)8190.61%

EPS beat(4)1

Avg EPS beat(4)1648.02%

Min EPS beat(4)-1282.15%

Max EPS beat(4)8190.61%

EPS beat(8)4

Avg EPS beat(8)859.69%

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)0

Avg Revenue beat(2)-7.68%

Min Revenue beat(2)-9.3%

Max Revenue beat(2)-6.06%

Revenue beat(4)0

Avg Revenue beat(4)-8.08%

Min Revenue beat(4)-10.26%

Max Revenue beat(4)-6.06%

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)7.81%

EPS NQ rev (3m)13.96%

EPS NY rev (1m)-1.06%

EPS NY rev (3m)8.4%

Revenue NQ rev (1m)-0.57%

Revenue NQ rev (3m)-0.57%

Revenue NY rev (1m)-0.39%

Revenue NY rev (3m)-0.96%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	6.8
P/S	1.35
P/FCF	N/A
P/OCF	15.87
P/B	2.15
P/tB	2.15
EV/EBITDA	9.23

EPS(TTM)-2.43

EYN/A

EPS(NY)2.06

Fwd EY14.71%

FCF(TTM)-0.32

FCFYN/A

OCF(TTM)0.88

OCFY6.3%

SpS10.37

BVpS6.5

TBVpS6.5

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-16.02%
ROE	-40.18%
ROCE	6.38%
ROIC	5.04%
ROICexc	5.7%
ROICexgc	5.7%
OM	8.5%
PM (TTM)	N/A
GM	26.82%
FCFM	N/A

ROA(3y)-49.69%

ROA(5y)-36.11%

ROE(3y)-100.26%

ROE(5y)-75.03%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y28.03%

GM growth 5Y-6.9%

F-Score5

Asset Turnover0.64

Health

		Industry Rank	Sector Rank
Debt/Equity	0.95
Debt/FCF	N/A
Debt/EBITDA	3.05
Cap/Depr	104.42%
Cap/Sales	11.57%
Interest Coverage	2.46
Cash Conversion	43.45%
Profit Quality	N/A
Current Ratio	1.77
Quick Ratio	1.77
Altman-Z	1.56

F-Score5

WACC7.12%

ROIC/WACC0.71

Cap/Depr(3y)77.68%

Cap/Depr(5y)76.79%

Cap/Sales(3y)10.75%

Cap/Sales(5y)18.27%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-452.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%325%

EPS Next Y118.19%

EPS Next 2Y65.87%

EPS Next 3Y43.64%

EPS Next 5YN/A

Revenue 1Y (TTM)11.12%

Revenue growth 3Y12.91%

Revenue growth 5Y-0.5%

Sales Q2Q%-9.34%

Revenue Next Year-3.83%

Revenue Next 2Y3.49%

Revenue Next 3Y3.86%

Revenue Next 5YN/A

EBIT growth 1Y607.93%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year750.32%

EBIT Next 3Y160.76%

EBIT Next 5YN/A

FCF growth 1Y-243.15%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y22.82%

OCF growth 3Y11.93%

OCF growth 5Y-44.91%

DIAMOND OFFSHORE DRILLING IN (DO) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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