DIAMOND OFFSHORE DRILLING IN (DO)

US25271C2017 - Common Stock

13.64  +0.2 (+1.49%)

After market: 13.64 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to DO. DO was compared to 66 industry peers in the Energy Equipment & Services industry. DO has a bad profitability rating. Also its financial health evaluation is rather negative. DO is valied quite expensively at the moment, while it does show a decent growth rate.



1

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.
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

The Return On Assets of DO (-2.61%) is worse than 80.30% of its industry peers.
DO has a worse Return On Equity (-6.93%) than 78.79% of its industry peers.
DO has a Return On Invested Capital of 2.60%. This is in the lower half of the industry: DO underperforms 69.70% of its industry peers.
Industry RankSector Rank
ROA -2.61%
ROE -6.93%
ROIC 2.6%
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 4.42%. This is in the lower half of the industry: DO underperforms 71.21% of its industry peers.
DO has a Gross Margin (21.79%) which is in line with its industry peers.
DO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.42%
PM (TTM) N/A
GM 21.79%
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.

2.2 Solvency

DO has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DO (1.00) is worse than 80.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.35
WACC7.41%

2.3 Liquidity

A Current Ratio of 1.54 indicates that DO should not have too much problems paying its short term obligations.
The Current ratio of DO (1.54) is worse than 65.15% of its industry peers.
DO has a Quick Ratio of 1.54. 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 (1.54) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.54

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 53.01% over the past year.
The Revenue has grown by 25.55% in the past year. This is a very strong growth!
Measured over the past years, DO shows a decrease in Revenue. The Revenue has been decreasing by -0.50% on average per year.
EPS 1Y (TTM)53.01%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-171.15%
Revenue 1Y (TTM)25.55%
Revenue growth 3Y12.91%
Revenue growth 5Y-0.5%
Revenue growth Q2Q33.29%

3.2 Future

DO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.99% yearly.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y122.86%
EPS Next 2Y64.35%
EPS Next 3Y42.99%
EPS Next 5YN/A
Revenue Next Year-3.64%
Revenue Next 2Y2.85%
Revenue Next 3Y3.95%
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.

2

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 21.78, the valuation of DO can be described as rather expensive.
66.67% of the companies in the same industry are cheaper than DO, based on the Price/Forward Earnings ratio.
DO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 21.78

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 75.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.16

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.
DO's earnings are expected to grow with 42.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.35%
EPS Next 3Y42.99%

0

5. Dividend

5.1 Amount

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

DIAMOND OFFSHORE DRILLING IN

NYSE:DO (3/28/2024, 8:05:28 PM)

After market: 13.64 0 (0%)

13.64

+0.2 (+1.49%)

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 Cap1.40B
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 21.78
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 -2.61%
ROE -6.93%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.42%
PM (TTM) N/A
GM 21.79%
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 Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 1
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.54
Quick Ratio 1.54
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)
Growth
EPS 1Y (TTM)53.01%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y122.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.55%
Revenue growth 3Y12.91%
Revenue growth 5Y
Revenue growth 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