ODFJELL DRILLING LTD (ODL.OL) Stock Fundamental Analysis
OSL:ODL - Euronext Oslo - BMG671801022 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to ODL. ODL was compared to 36 industry peers in the Energy Equipment & Services industry. While ODL is still in line with the averages on profitability rating, there are concerns on its financial health. ODL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ODL was profitable.
In the past year ODL had a positive cash flow from operations.
In the past 5 years ODL has always been profitable.
Each year in the past 5 years ODL had a positive operating cash flow.
1.2 Ratios
ODL has a Return On Assets of 3.72%. This is comparable to the rest of the industry: ODL outperforms 50.00% of its industry peers.
The Return On Equity of ODL (5.78%) is worse than 63.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.70%, ODL is in line with its industry, outperforming 44.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ODL is below the industry average of 10.05%.
The last Return On Invested Capital (6.70%) for ODL is above the 3 year average (5.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 5.78% | ||
| ROIC | 6.7% |
ROA(3y)6.13%
ROA(5y)5.35%
ROE(3y)10.42%
ROE(5y)9.81%
ROIC(3y)5.78%
ROIC(5y)5.92%
1.3 Margins
ODL's Profit Margin of 10.39% is fine compared to the rest of the industry. ODL outperforms 63.89% of its industry peers.
In the last couple of years the Profit Margin of ODL has grown nicely.
ODL has a better Operating Margin (21.39%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of ODL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.39% | ||
| PM (TTM) | 10.39% | ||
| GM | N/A |
OM growth 3Y1.24%
OM growth 5Y1.75%
PM growth 3Y-13.55%
PM growth 5Y10.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ODL is destroying value.
ODL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ODL has been increased compared to 5 years ago.
ODL has a better debt/assets ratio than last year.
2.2 Solvency
ODL has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as ODL would need 3.32 years to pay back of all of its debts.
ODL's Debt to FCF ratio of 3.32 is fine compared to the rest of the industry. ODL outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that ODL is not too dependend on debt financing.
ODL has a better Debt to Equity ratio (0.37) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC9.1%
2.3 Liquidity
ODL has a Current Ratio of 0.92. This is a bad value and indicates that ODL is not financially healthy enough and could expect problems in meeting its short term obligations.
ODL's Current ratio of 0.92 is on the low side compared to the rest of the industry. ODL is outperformed by 75.00% of its industry peers.
ODL has a Quick Ratio of 0.92. This is a bad value and indicates that ODL is not financially healthy enough and could expect problems in meeting its short term obligations.
ODL has a worse Quick ratio (0.92) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ODL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.33%, which is quite good.
ODL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.04% yearly.
ODL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.00%.
Measured over the past years, ODL shows a decrease in Revenue. The Revenue has been decreasing by -1.20% on average per year.
EPS 1Y (TTM)13.33%
EPS 3Y-2.35%
EPS 5Y14.04%
EPS Q2Q%116.67%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.65%
Revenue growth 5Y-1.2%
Sales Q2Q%5.32%
3.2 Future
Based on estimates for the next years, ODL will show a very strong growth in Earnings Per Share. The EPS will grow by 43.20% on average per year.
ODL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y141.65%
EPS Next 2Y90.21%
EPS Next 3Y43.2%
EPS Next 5YN/A
Revenue Next Year8.63%
Revenue Next 2Y9.9%
Revenue Next 3Y4.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ODL is valuated rather expensively with a Price/Earnings ratio of 20.86.
Compared to the rest of the industry, the Price/Earnings ratio of ODL indicates a slightly more expensive valuation: ODL is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. ODL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 7.26, which indicates a rather cheap valuation of ODL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ODL indicates a somewhat cheap valuation: ODL is cheaper than 66.67% of the companies listed in the same industry.
ODL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ODL is on the same level as its industry peers.
ODL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 6.06 |
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.
ODL has a very decent profitability rating, which may justify a higher PE ratio.
ODL's earnings are expected to grow with 43.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)1.49
EPS Next 2Y90.21%
EPS Next 3Y43.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.33%, ODL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.65, ODL pays a bit more dividend than its industry peers.
ODL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of ODL is nicely growing with an annual growth rate of 70.82%!
Dividend Growth(5Y)70.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ODL pays out 89.46% of its income as dividend. This is not a sustainable payout ratio.
ODL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.46%
EPS Next 2Y90.21%
EPS Next 3Y43.2%
OSL:ODL (6/19/2025, 2:56:36 PM)
70.5
+0.8 (+1.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners13.34%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap16.91B
Analysts83.64
Price Target93.64 (32.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Yearly Dividend2.39
Dividend Growth(5Y)70.82%
DP89.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.41%
Min EPS beat(2)-51.83%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-3.37%
Min EPS beat(4)-51.83%
Max EPS beat(4)20.53%
EPS beat(8)5
Avg EPS beat(8)16.74%
EPS beat(12)8
Avg EPS beat(12)143.33%
EPS beat(16)12
Avg EPS beat(16)155.67%
Revenue beat(2)1
Avg Revenue beat(2)1.56%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)3.43%
Revenue beat(4)3
Avg Revenue beat(4)2.64%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)6.11%
Revenue beat(8)7
Avg Revenue beat(8)4.74%
Revenue beat(12)11
Avg Revenue beat(12)6.79%
Revenue beat(16)12
Avg Revenue beat(16)1.83%
PT rev (1m)7.49%
PT rev (3m)4.56%
EPS NQ rev (1m)92.31%
EPS NQ rev (3m)31.58%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 7.26 | ||
| P/S | 2.16 | ||
| P/FCF | 9.11 | ||
| P/OCF | 5.33 | ||
| P/B | 1.2 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)3.38
EY4.79%
EPS(NY)9.71
Fwd EY13.78%
FCF(TTM)7.74
FCFY10.98%
OCF(TTM)13.22
OCFY18.76%
SpS32.57
BVpS58.58
TBVpS58.47
PEG (NY)0.15
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 5.78% | ||
| ROCE | 8.7% | ||
| ROIC | 6.7% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 7.09% | ||
| OM | 21.39% | ||
| PM (TTM) | 10.39% | ||
| GM | N/A | ||
| FCFM | 23.76% |
ROA(3y)6.13%
ROA(5y)5.35%
ROE(3y)10.42%
ROE(5y)9.81%
ROIC(3y)5.78%
ROIC(5y)5.92%
ROICexc(3y)6.37%
ROICexc(5y)6.59%
ROICexgc(3y)6.38%
ROICexgc(5y)6.64%
ROCE(3y)7.5%
ROCE(5y)7.69%
ROICexcg growth 3Y12.71%
ROICexcg growth 5Y3.08%
ROICexc growth 3Y13.22%
ROICexc growth 5Y3.34%
OM growth 3Y1.24%
OM growth 5Y1.75%
PM growth 3Y-13.55%
PM growth 5Y10.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 67.85% | ||
| Cap/Sales | 16.84% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 87.85% | ||
| Profit Quality | 228.68% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score6
WACC9.1%
ROIC/WACC0.74
Cap/Depr(3y)135.19%
Cap/Depr(5y)103.05%
Cap/Sales(3y)12.11%
Cap/Sales(5y)13.14%
Profit Quality(3y)163.66%
Profit Quality(5y)173.44%
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3Y-2.35%
EPS 5Y14.04%
EPS Q2Q%116.67%
EPS Next Y141.65%
EPS Next 2Y90.21%
EPS Next 3Y43.2%
EPS Next 5YN/A
Revenue 1Y (TTM)4%
Revenue growth 3Y10.65%
Revenue growth 5Y-1.2%
Sales Q2Q%5.32%
Revenue Next Year8.63%
Revenue Next 2Y9.9%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-46.85%
EBIT growth 3Y12.02%
EBIT growth 5Y0.53%
EBIT Next Year159.05%
EBIT Next 3Y40.52%
EBIT Next 5YN/A
FCF growth 1Y-3%
FCF growth 3Y-0.63%
FCF growth 5YN/A
OCF growth 1Y24.47%
OCF growth 3Y3.9%
OCF growth 5Y7.72%