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DIAMOND OFFSHORE DRILLING IN (DO) Stock Fundamental Analysis

NYSE:DO - New York Stock Exchange, Inc. - US25271C2017 - Common Stock - Currency: USD

13.99  -0.35 (-2.44%)

After market: 13.99 0 (0%)

Fundamental Rating

3

Taking everything into account, DO scores 3 out of 10 in our fundamental rating. DO was compared to 63 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 it does not seem to be growing.


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.
DO had a positive operating cash flow in the past year.
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

Looking at the Return On Assets, with a value of -16.02%, DO is doing worse than 93.55% of the companies in the same industry.
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's Return On Invested Capital of 5.04% is in line compared 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200 -250

1.3 Margins

DO's Operating Margin of 8.50% is in line compared to the rest of the industry. DO outperforms 54.84% of its industry peers.
DO has a Gross Margin of 26.82%. This is comparable 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

DO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DO has more shares outstanding
Compared to 5 years ago, DO has less shares outstanding
Compared to 1 year ago, DO has a worse debt to assets ratio.
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

Based on the Altman-Z score of 1.56, we must say that DO is in the distress zone and has some risk of bankruptcy.
DO has a Altman-Z score of 1.56. This is comparable 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.
DO has a worse Debt to Equity ratio (0.95) than 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.
DO has a Quick 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.
With a decent Quick ratio value of 1.77, DO is doing good in the industry, outperforming 74.19% of the companies in the same industry.
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

The earnings per share for DO have decreased strongly by -452.27% in the last year.
Looking at the last year, DO shows a quite strong growth in Revenue. The Revenue has grown by 11.12% in the last year.
DO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.50% yearly.
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

The Earnings Per Share is expected to grow by 43.64% on average over the next years. This is a very strong growth
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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

DO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 6.80 indicates a rather cheap valuation of DO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DO indicates a rather cheap valuation: DO is cheaper than 85.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DO to the average of the S&P500 Index (22.30), we can say DO is valued rather cheaply.
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

DO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DO is more expensive than 70.97% of the companies 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.
DO's earnings are expected to grow with 43.64% in the coming years. This may justify a more expensive valuation.
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

DO does not give a dividend.
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%