DIAMOND OFFSHORE DRILLING IN (DO) Fundamental Analysis & Valuation

NYSE:DO • US25271C2017

Current stock price

13.99 USD
-0.35 (-2.44%)
At close:
13.99 USD
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This DO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. DO Profitability Analysis

1.1 Basic Checks

  • DO had negative earnings in the past year.
  • DO had a positive operating cash flow in the past year.
  • DO had negative earnings in each of the past 5 years.
  • DO had a positive operating cash flow in 4 of the past 5 years.
DO Yearly Net Income VS EBIT VS OCF VS FCFDO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B -2B

1.2 Ratios

  • DO's Return On Assets of -16.02% is on the low side compared to the rest of the industry. DO is outperformed by 93.55% of its industry peers.
  • DO has a worse Return On Equity (-40.18%) than 88.71% of its industry peers.
  • DO has a Return On Invested Capital of 5.04%. This is comparable to the rest of the industry: DO outperforms 43.55% of its industry peers.
Industry RankSector 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
DO Yearly ROA, ROE, ROICDO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200 -250

1.3 Margins

  • DO has a Operating Margin of 8.50%. This is comparable to the rest of the industry: DO outperforms 54.84% of its industry peers.
  • DO has a Gross Margin (26.82%) which is comparable to the rest of the industry.
  • DO's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
DO Yearly Profit, Operating, Gross MarginsDO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200

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2

2. DO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DO is destroying value.
  • The number of shares outstanding for DO has been increased compared to 1 year ago.
  • Compared to 1 year ago, DO has a worse debt to assets ratio.
DO Yearly Shares OutstandingDO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
DO Yearly Total Debt VS Total AssetsDO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

  • DO has an Altman-Z score of 1.56. This is a bad value and indicates that DO is not financially healthy and even has some risk of bankruptcy.
  • DO's Altman-Z score of 1.56 is in line compared 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.
  • With a Debt to Equity ratio value of 0.95, DO is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Altman-Z 1.56
ROIC/WACC0.71
WACC7.12%
DO Yearly LT Debt VS Equity VS FCFDO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

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 has a Current ratio (1.77) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.77 indicates that DO should not have too much problems paying 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 RankSector Rank
Current Ratio 1.77
Quick Ratio 1.77
DO Yearly Current Assets VS Current LiabilitesDO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. DO Growth Analysis

3.1 Past

  • The earnings per share for DO have decreased strongly by -452.27% in the last year.
  • DO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.12%.
  • The Revenue has been decreasing by -0.50% on average over the past years.
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.
  • The Revenue is expected to grow by 3.86% on average over the next years.
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

  • 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.
DO Yearly Revenue VS EstimatesDO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
DO Yearly EPS VS EstimatesDO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4 -6 -8

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4

4. DO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for DO. In the last year negative earnings were reported.
  • With a Price/Forward Earnings ratio of 6.80, the valuation of DO can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, DO is valued cheaper than 85.48% of the companies in the same industry.
  • DO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.84.
Industry RankSector Rank
PE N/A
Fwd PE 6.8
DO Price Earnings VS Forward Price EarningsDO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

  • 70.97% of the companies in the same industry are cheaper than DO, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.23
DO Per share dataDO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 10

4.3 Compensation for Growth

  • The 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 DO's earnings are expected to grow with 43.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y65.87%
EPS Next 3Y43.64%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DO Dividend Analysis

5.1 Amount

  • DO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DO Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)11-04
Inst Owners0.02%
Inst Owner Change0%
Ins Owners70.89%
Ins Owner Change0%
Market Cap1.44B
Revenue(TTM)1.07B
Net Income(TTM)-269.76M
Analysts86.67
Price Target19.79 (41.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3YN/A
ROICexgc 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 RankSector 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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of DIAMOND OFFSHORE DRILLING IN (DO) stock?

ChartMill assigns a fundamental rating of 3 / 10 to DO.


What is the valuation status of DIAMOND OFFSHORE DRILLING IN (DO) stock?

ChartMill assigns a valuation rating of 4 / 10 to DIAMOND OFFSHORE DRILLING IN (DO). This can be considered as Fairly Valued.


Can you provide the profitability details for DIAMOND OFFSHORE DRILLING IN?

DIAMOND OFFSHORE DRILLING IN (DO) has a profitability rating of 2 / 10.


Is the dividend of DIAMOND OFFSHORE DRILLING IN sustainable?

The dividend rating of DIAMOND OFFSHORE DRILLING IN (DO) is 0 / 10 and the dividend payout ratio is 0%.