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DIAMOND OFFSHORE DRILLING IN (DO) Stock Fundamental Analysis

USA - NYSE:DO - US25271C2017 - Common Stock

13.99 USD
-0.35 (-2.44%)
Last: 9/3/2024, 8:04:01 PM
13.99 USD
0 (0%)
After Hours: 9/3/2024, 8:04:01 PM
Fundamental Rating

3

Taking everything into account, DO scores 3 out of 10 in our fundamental rating. DO was compared to 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of DO have multiple concerns. DO has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year DO has reported negative net income.
In the past year DO had a positive cash flow from operations.
In the past 5 years DO always reported negative net income.
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 2015 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.
Looking at the Return On Equity, with a value of -40.18%, DO is doing worse than 88.71% of the companies in the same industry.
DO has a Return On Invested Capital (5.04%) which is in line with 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200 -250

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DO 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.
DO Yearly Shares OutstandingDO Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
With a Altman-Z score value of 1.56, DO perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that DO is somewhat dependend on debt financing.
DO's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. DO is outperformed by 77.42% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

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.
The Quick ratio of DO (1.77) is better than 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

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%.
Looking at the last year, DO shows a quite strong growth in Revenue. The Revenue has grown by 11.12% in the last year.
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
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. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DO. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 6.80 indicates a rather cheap valuation of DO.
85.48% of the companies in the same industry are more expensive than DO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. DO is valued rather cheaply when compared to this.
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 10 20

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 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

DO'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 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%

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0

5. Dividend

5.1 Amount

No dividends for DO!.
Industry RankSector 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 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
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
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 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%