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 62 industry peers in the Energy Equipment & Services industry. While NE has a great profitability rating, there are quite some concerns on its financial health. NE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NE had positive earnings in the past year.
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
NE's Return On Assets of 5.83% is fine compared to the rest of the industry. NE outperforms 64.52% of its industry peers.
NE has a better Return On Equity (9.90%) than 61.29% of its industry peers.
The Return On Invested Capital of NE (8.83%) is better than 66.13% 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 8.69%.
The last Return On Invested Capital (8.83%) for NE is above the 3 year average (7.22%), which is a sign of increasing profitability.
| 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 87.10% of the companies in the same industry.
In the last couple of years the Profit Margin of NE has declined.
The Operating Margin of NE (23.71%) is better than 88.71% of its industry peers.
NE has a Gross Margin of 42.98%. This is amongst the best in the industry. NE outperforms 85.48% 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 below the Cost of Capital (WACC), which means it is destroying value.
NE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NE has been reduced compared to 5 years ago.
NE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that NE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.58, NE perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
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.
NE's Debt to FCF ratio of 7.18 is in line compared to the rest of the industry. NE outperforms 46.77% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that NE is not too dependend on debt financing.
The Debt to Equity ratio of NE (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.99
WACC8.89%
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.
Looking at the Current ratio, with a value of 1.57, NE is doing worse than 69.35% of the companies in the same industry.
NE has a Quick 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 Quick ratio of 1.57. This is comparable to the rest of the industry: NE outperforms 56.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.44% over the past year.
Measured over the past years, NE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.18% on average per year.
NE shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.96%.
NE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.56% yearly.
EPS 1Y (TTM)1.44%
EPS 3Y-17.18%
EPS 5YN/A
EPS Q2Q%-42.22%
Revenue 1Y (TTM)25.96%
Revenue growth 3Y53.36%
Revenue growth 5Y18.56%
Sales Q2Q%37.26%
3.2 Future
The Earnings Per Share is expected to grow by 0.44% 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 5.05% on average per year.
EPS Next Y-32.99%
EPS Next 2Y-1.71%
EPS Next 3Y0.44%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y5.97%
Revenue Next 3Y5.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 10.97, which indicates a very decent valuation of NE.
NE's Price/Earnings ratio is a bit cheaper when compared to the industry. NE is cheaper than 69.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, NE is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.42, the valuation of NE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, NE is valued a bit cheaper than 61.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NE to the average of the S&P500 Index (21.85), we can say NE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
66.13% of the companies in the same industry are more expensive than NE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.4 | ||
| EV/EBITDA | 4.24 |
4.3 Compensation for Growth
NE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.71%
EPS Next 3Y0.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.20%, NE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.01, NE pays a better dividend. On top of this NE pays more dividend than 96.77% of the companies listed in the same industry.
NE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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
NE pays out 65.01% of its income as dividend. 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-1.71%
EPS Next 3Y0.44%
23.26
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners74.76%
Inst Owner Change0%
Ins Owners1.85%
Ins Owner Change0.78%
Market Cap3.69B
Analysts80.91
Price Target33.38 (43.51%)
Short Float %8.92%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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)-14.49%
PT rev (3m)-25.16%
EPS NQ rev (1m)-5.22%
EPS NQ rev (3m)-21.87%
EPS NY rev (1m)-3.6%
EPS NY rev (3m)-43.34%
Revenue NQ rev (1m)-3.03%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-1.92%
Revenue NY rev (3m)-7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.42 | ||
| P/S | 1.12 | ||
| P/FCF | 13.4 | ||
| P/OCF | 4.63 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 4.24 |
EPS(TTM)2.12
EY9.11%
EPS(NY)2.23
Fwd EY9.59%
FCF(TTM)1.74
FCFY7.46%
OCF(TTM)5.02
OCFY21.6%
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 | 1.58 |
F-Score5
WACC8.89%
ROIC/WACC0.99
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)1.44%
EPS 3Y-17.18%
EPS 5YN/A
EPS Q2Q%-42.22%
EPS Next Y-32.99%
EPS Next 2Y-1.71%
EPS Next 3Y0.44%
EPS Next 5YN/A
Revenue 1Y (TTM)25.96%
Revenue growth 3Y53.36%
Revenue growth 5Y18.56%
Sales Q2Q%37.26%
Revenue Next Year9.59%
Revenue Next 2Y5.97%
Revenue Next 3Y5.05%
Revenue Next 5YN/A
EBIT growth 1Y28.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year73.98%
EBIT Next 3Y26.1%
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%