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 63 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 has a decent growth rate and is not valued too expensively.
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.
NE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.83%, NE is doing good in the industry, outperforming 65.08% of the companies in the same industry.
With a decent Return On Equity value of 9.90%, NE is doing good in the industry, outperforming 61.90% of the companies in the same industry.
NE has a better Return On Invested Capital (8.83%) than 65.08% of its industry peers.
NE had an Average Return On Invested Capital over the past 3 years of 7.22%. This is in line with the industry average of 8.50%.
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
NE's Profit Margin of 14.00% is amongst the best of the industry. NE outperforms 87.30% of its industry peers.
In the last couple of years the Profit Margin of NE has declined.
NE's Operating Margin of 23.71% is amongst the best of the industry. NE outperforms 88.89% of its industry peers.
NE has a better Gross Margin (42.98%) than 85.71% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NE is still creating some value.
Compared to 1 year ago, NE has more shares outstanding
The number of shares outstanding for NE has been reduced compared to 5 years ago.
Compared to 1 year ago, NE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that NE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.75, NE perfoms like the industry average, outperforming 49.21% 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.
Looking at the Debt to FCF ratio, with a value of 7.18, NE is in line with its industry, outperforming 47.62% of the companies in the same industry.
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 | 1.75 |
ROIC/WACC1.11
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.57 indicates that NE should not have too much problems paying its short term obligations.
The Current ratio of NE (1.57) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.57 indicates that NE should not have too much problems paying its short term obligations.
The Quick ratio of NE (1.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
NE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.44%.
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.
Looking at the last year, NE shows a very strong growth in Revenue. The Revenue has grown by 25.96%.
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)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
Based on estimates for the next years, NE will show a small growth in Earnings Per Share. The EPS will grow by 0.44% on average per year.
NE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y-32.99%
EPS Next 2Y-1.71%
EPS Next 3Y0.44%
EPS Next 5YN/A
Revenue Next Year9.85%
Revenue Next 2Y6.17%
Revenue Next 3Y5.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.73, which indicates a correct valuation of NE.
Based on the Price/Earnings ratio, NE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
NE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.04, the valuation of NE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NE is on the same level as its industry peers.
NE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NE is valued a bit cheaper than the industry average as 65.08% of the companies are valued more expensively.
NE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 4.97 |
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-1.71%
EPS Next 3Y0.44%
5. Dividend
5.1 Amount
NE has a Yearly Dividend Yield of 6.88%, which is a nice return.
Compared to an average industry Dividend Yield of 3.47, NE pays a better dividend. On top of this NE pays more dividend than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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.
The dividend of NE decreased 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%
29.11
+0.04 (+0.14%)
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 Change0.78%
Market Cap4.62B
Analysts81.82
Price Target33.38 (14.67%)
Short Float %8.48%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.88% |
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)0%
PT rev (3m)-19.46%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-43.34%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.4 | ||
| P/FCF | 16.77 | ||
| P/OCF | 5.79 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 4.97 |
EPS(TTM)2.12
EY7.28%
EPS(NY)2.23
Fwd EY7.67%
FCF(TTM)1.74
FCFY5.96%
OCF(TTM)5.02
OCFY17.26%
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 | 1.75 |
F-Score5
WACC7.94%
ROIC/WACC1.11
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 Year9.85%
Revenue Next 2Y6.17%
Revenue Next 3Y5.09%
Revenue Next 5YN/A
EBIT growth 1Y28.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year71.05%
EBIT Next 3Y25.94%
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%