NOBLE CORP PLC (NE) Stock Fundamental Analysis
NYSE:NE - New York Stock Exchange, Inc. - GB00BMXNWH07 - Common Stock - Currency: USD
NE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. NE scores excellent on profitability, but there are concerns on its financial health. NE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NE was profitable.
In the past year NE had a positive cash flow from operations.
Of the past 5 years NE 4 years were profitable.
In the past 5 years NE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.83%, NE is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
NE has a better Return On Equity (9.90%) than 62.30% of its industry peers.
The Return On Invested Capital of NE (8.83%) is better than 67.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NE is in line with the industry average of 8.08%.
The 3 year average ROIC (7.22%) for NE is below the current ROIC(8.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 9.9% | ||
| ROIC | 8.83% |
ROA(3y)5.89%
ROA(5y)-11.73%
ROE(3y)8.87%
ROE(5y)N/A
ROIC(3y)7.22%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 14.00%, NE belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
In the last couple of years the Profit Margin of NE has declined.
With an excellent Operating Margin value of 23.71%, NE belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
NE has a Gross Margin of 42.98%. This is amongst the best in the industry. NE outperforms 85.25% of its industry peers.
NE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.71% | ||
| PM (TTM) | 14% | ||
| GM | 42.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-29.33%
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
NE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NE has more shares outstanding
NE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that NE is in the distress zone and has some risk of bankruptcy.
NE has a Altman-Z score of 1.70. This is comparable to the rest of the industry: NE outperforms 45.90% of its industry peers.
The Debt to FCF ratio of NE is 7.18, which is on the high side as it means it would take NE, 7.18 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.18, NE perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
NE has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
NE has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.06
WACC8.32%
2.3 Liquidity
NE has a Current Ratio of 1.57. This is a normal value and indicates that NE is financially healthy and should not expect problems in meeting its short term obligations.
NE has a worse Current ratio (1.57) than 65.57% of its industry peers.
A Quick Ratio of 1.57 indicates that NE should not have too much problems paying its short term obligations.
NE has a Quick ratio (1.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The earnings per share for NE have decreased strongly by -37.04% in the last year.
NE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.18% yearly.
Looking at the last year, NE shows a quite strong growth in Revenue. The Revenue has grown by 18.11% in the last year.
Measured over the past years, NE shows a quite strong growth in Revenue. The Revenue has been growing by 18.56% on average per year.
EPS 1Y (TTM)-37.04%
EPS 3Y-17.18%
EPS 5YN/A
EPS Q2Q%-81.94%
Revenue 1Y (TTM)18.11%
Revenue growth 3Y53.36%
Revenue growth 5Y18.56%
Sales Q2Q%22.49%
3.2 Future
The Earnings Per Share is expected to grow by 1.81% on average over the next years.
Based on estimates for the next years, NE will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y-33.34%
EPS Next 2Y-5.88%
EPS Next 3Y1.81%
EPS Next 5YN/A
Revenue Next Year9.69%
Revenue Next 2Y5.65%
Revenue Next 3Y4.99%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.38, the valuation of NE can be described as rather expensive.
NE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.54, NE is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.00 indicates a correct valuation of NE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NE is on the same level as its industry peers.
NE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NE indicates a somewhat cheap valuation: NE is cheaper than 63.93% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
The decent profitability rating of NE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.88%
EPS Next 3Y1.81%
5. Dividend
5.1 Amount
NE has a Yearly Dividend Yield of 7.43%, which is a nice return.
NE's Dividend Yield is rather good when compared to the industry average which is at 3.80. NE pays more dividend than 93.44% of the companies in the same industry.
NE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.43% |
5.2 History
On average, the dividend of NE grows each year by 7.43%, which is quite nice.
NE has been paying a dividend for over 5 years, so it has already some track record.
NE has decreased its dividend recently.
Dividend Growth(5Y)7.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
65.01% of the earnings are spent on dividend by NE. This is not a sustainable payout ratio.
The dividend of NE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP65.01%
EPS Next 2Y-5.88%
EPS Next 3Y1.81%
26.59
-0.88 (-3.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners74.53%
Inst Owner Change0%
Ins Owners1.89%
Ins Owner Change0.1%
Market Cap4.22B
Analysts80
Price Target32.45 (22.04%)
Short Float %7.15%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.43% |
Yearly Dividend1.85
Dividend Growth(5Y)7.43%
DP65.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.81%
Min EPS beat(2)-39.68%
Max EPS beat(2)-13.94%
EPS beat(4)1
Avg EPS beat(4)-18.35%
Min EPS beat(4)-39.68%
Max EPS beat(4)10.37%
EPS beat(8)2
Avg EPS beat(8)-16.66%
EPS beat(12)4
Avg EPS beat(12)-11.85%
EPS beat(16)6
Avg EPS beat(16)-450.46%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)3.06%
Revenue beat(4)3
Avg Revenue beat(4)2.91%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)5.98%
Revenue beat(8)7
Avg Revenue beat(8)3.51%
Revenue beat(12)10
Avg Revenue beat(12)4.27%
Revenue beat(16)11
Avg Revenue beat(16)1.51%
PT rev (1m)-3.05%
PT rev (3m)-12.5%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-6.44%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-4.11%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 13 | ||
| P/S | 1.28 | ||
| P/FCF | 15.32 | ||
| P/OCF | 5.29 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 4.77 |
EPS(TTM)1.53
EY5.75%
EPS(NY)2.05
Fwd EY7.7%
FCF(TTM)1.74
FCFY6.53%
OCF(TTM)5.02
OCFY18.9%
SpS20.75
BVpS29.34
TBVpS29.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 9.9% | ||
| ROCE | 11.18% | ||
| ROIC | 8.83% | ||
| ROICexc | 9.23% | ||
| ROICexgc | 9.23% | ||
| OM | 23.71% | ||
| PM (TTM) | 14% | ||
| GM | 42.98% | ||
| FCFM | 8.36% |
ROA(3y)5.89%
ROA(5y)-11.73%
ROE(3y)8.87%
ROE(5y)N/A
ROIC(3y)7.22%
ROIC(5y)N/A
ROICexc(3y)7.73%
ROICexc(5y)N/A
ROICexgc(3y)7.76%
ROICexgc(5y)N/A
ROCE(3y)9.13%
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 3Y-29.33%
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y-0.65%
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 107.66% | ||
| Cap/Sales | 15.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63% | ||
| Profit Quality | 59.76% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.7 |
F-Score5
WACC8.32%
ROIC/WACC1.06
Cap/Depr(3y)129.61%
Cap/Depr(5y)106.63%
Cap/Sales(3y)15.65%
Cap/Sales(5y)16.47%
Profit Quality(3y)38.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.04%
EPS 3Y-17.18%
EPS 5YN/A
EPS Q2Q%-81.94%
EPS Next Y-33.34%
EPS Next 2Y-5.88%
EPS Next 3Y1.81%
EPS Next 5YN/A
Revenue 1Y (TTM)18.11%
Revenue growth 3Y53.36%
Revenue growth 5Y18.56%
Sales Q2Q%22.49%
Revenue Next Year9.69%
Revenue Next 2Y5.65%
Revenue Next 3Y4.99%
Revenue Next 5YN/A
EBIT growth 1Y28.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year71.2%
EBIT Next 3Y24.63%
EBIT Next 5YN/A
FCF growth 1Y245.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y195.81%
OCF growth 3Y373.66%
OCF growth 5Y28.54%