DIAMOND OFFSHORE DRILLING IN (DO)
US25271C2017 - Common Stock
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 has a bad profitability rating. Also its financial health evaluation is rather negative. DO has a correct valuation and a medium growth rate.
1. Profitability
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.
1.2 Ratios
DO's Return On Assets of -2.38% is on the low side compared to the rest of the industry. DO is outperformed by 75.38% of its industry peers.
DO has a worse Return On Equity (-6.11%) than 76.92% of its industry peers.
DO has a worse Return On Invested Capital (4.36%) than 60.00% of its industry peers.
| Industry Rank | Sector 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 (7.10%) which is in line with its industry peers.
DO has a Gross Margin (24.02%) which is in line with its industry peers.
DO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DO is destroying value.
DO has more shares outstanding than it did 1 year ago.
DO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DO is higher compared to a year ago.
2.2 Solvency
DO has an Altman-Z score of 1.63. This is a bad value and indicates that DO is not financially healthy and even has some risk of bankruptcy.
DO has a Altman-Z score (1.63) which is in line with its industry peers.
DO has a Debt/Equity ratio of 0.97. This is a neutral value indicating DO is somewhat dependend on debt financing.
DO has a worse Debt to Equity ratio (0.97) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.63 |
ROIC/WACC0.57
WACC7.69%
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.
The Current ratio of DO (1.63) is worse than 66.15% of its industry peers.
DO has a Quick 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 decent Quick ratio value of 1.63, DO is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
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%.
The Revenue has been decreasing by -0.50% on average over the past years.
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
Based on estimates for the next years, DO will show a very strong growth in Earnings Per Share. The EPS will grow by 42.18% on average per year.
DO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.37% yearly.
EPS Next Y116.78%
EPS Next 2Y65.05%
EPS Next 3Y42.18%
EPS Next 5YN/A
Revenue Next Year-2.52%
Revenue Next 2Y3.35%
Revenue Next 3Y2.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
DO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 8.28, the valuation of DO can be described as reasonable.
Based on the Price/Forward Earnings ratio, DO is valued a bit cheaper than 73.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, DO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
72.31% of the companies in the same industry are cheaper than DO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.22 |
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 42.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y65.05%
EPS Next 3Y42.18%
5. Dividend
5.1 Amount
DO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DIAMOND OFFSHORE DRILLING IN
NYSE:DO (7/26/2024, 7:25:29 PM)
After market: 16.43 0 (0%)16.43
+0.17 (+1.05%)
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 Cap1.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.28 | ||
| 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 Rank | Sector 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 Rank | Sector 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