DIAMOND OFFSHORE DRILLING IN (DO)

US25271C2017 - Common Stock

15.01  -0.31 (-2.02%)

After market: 15.01 0 (0%)

Fundamental Rating

2

DO gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 65 industry peers in the Energy Equipment & Services industry. DO may be in some trouble as it scores bad on both profitability and health. DO has a correct valuation and a medium growth rate.



1

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

DO has a worse Return On Assets (-2.38%) than 75.38% of its industry peers.
DO has a Return On Equity of -6.11%. This is in the lower half of the industry: DO underperforms 76.92% of its industry peers.
The Return On Invested Capital of DO (4.36%) is worse than 60.00% of its industry peers.
Industry RankSector Rank
ROA -2.38%
ROE -6.11%
ROIC 4.36%
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 of 7.10%. This is comparable to the rest of the industry: DO outperforms 47.69% of its industry peers.
DO has a Gross Margin (24.02%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DO has declined.
Industry RankSector Rank
OM 7.1%
PM (TTM) N/A
GM 24.02%
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%

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DO is destroying value.
DO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DO has been reduced compared to 5 years ago.
Compared to 1 year ago, DO has a worse debt to assets ratio.

2.2 Solvency

DO has an Altman-Z score of 1.58. This is a bad value and indicates that DO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, DO is in line with its industry, outperforming 43.08% of the companies in the same industry.
DO has a Debt/Equity ratio of 0.97. This is a neutral value indicating DO is somewhat dependend on debt financing.
The Debt to Equity ratio of DO (0.97) is worse than 76.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF N/A
Altman-Z 1.58
ROIC/WACC0.57
WACC7.58%

2.3 Liquidity

DO has a Current Ratio of 1.63. This is a normal value and indicates that DO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.63, DO is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
A Quick Ratio of 1.63 indicates that DO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.63, DO is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.63

4

3. Growth

3.1 Past

DO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.54%, which is quite impressive.
DO shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.87%.
DO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.50% yearly.
EPS 1Y (TTM)28.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%257.14%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y12.91%
Revenue growth 5Y-0.5%
Sales Q2Q%11.53%

3.2 Future

The Earnings Per Share is expected to grow by 41.69% on average over the next years. This is a very strong growth
Based on estimates for the next years, DO will show a small growth in Revenue. The Revenue will grow by 2.37% on average per year.
EPS Next Y116.78%
EPS Next 2Y65.04%
EPS Next 3Y41.69%
EPS Next 5YN/A
Revenue Next Year-2.89%
Revenue Next 2Y3.98%
Revenue Next 3Y2.37%
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.

4

4. Valuation

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 7.57, the valuation of DO can be described as very cheap.
DO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DO is cheaper than 73.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. DO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 7.57

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DO is valued a bit more expensive than the industry average as 73.85% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.72

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 41.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y65.04%
EPS Next 3Y41.69%

0

5. Dividend

5.1 Amount

No dividends for DO!.
Industry RankSector Rank
Dividend Yield N/A

DIAMOND OFFSHORE DRILLING IN

NYSE:DO (6/14/2024, 7:04:03 PM)

After market: 15.01 0 (0%)

15.01

-0.31 (-2.02%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.54B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 7.57
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.38%
ROE -6.11%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.1%
PM (TTM) N/A
GM 24.02%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.63
Quick Ratio 1.63
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)28.54%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y116.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.87%
Revenue growth 3Y12.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y