SEADRILL LIMITED (SDRL) Stock Fundamental Analysis
USA - NYSE:SDRL - BMG7997W1029 - Common Stock
30.5 USD
+1.21 (+4.13%)
30.5 USD
0 (0%)
Taking everything into account, SDRL scores 2 out of 10 in our fundamental rating. SDRL was compared to 61 industry peers in the Energy Equipment & Services industry. SDRL may be in some trouble as it scores bad on both profitability and health. SDRL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SDRL had positive earnings in the past year.
In the past year SDRL has reported a negative cash flow from operations.
In multiple years SDRL reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: SDRL reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of SDRL (1.89%) is comparable to the rest of the industry.
SDRL has a worse Return On Equity (2.68%) than 65.57% of its industry peers.
SDRL has a worse Return On Invested Capital (1.22%) than 80.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SDRL is below the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 2.68% | ||
| ROIC | 1.22% |
ROA(3y)52.44%
ROA(5y)4.92%
ROE(3y)84.97%
ROE(5y)N/A
ROIC(3y)4.58%
ROIC(5y)N/A
1.3 Margins
SDRL has a Profit Margin (5.68%) which is comparable to the rest of the industry.
With a Operating Margin value of 4.13%, SDRL is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
With a Gross Margin value of 26.64%, SDRL perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
SDRL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.13% | ||
| PM (TTM) | 5.68% | ||
| GM | 26.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y38.61%
GM growth 5YN/A
2. Health
2.1 Basic Checks
SDRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SDRL has been reduced compared to 1 year ago.
Compared to 1 year ago, SDRL has a worse debt to assets ratio.
2.2 Solvency
SDRL has an Altman-Z score of 1.71. This is a bad value and indicates that SDRL is not financially healthy and even has some risk of bankruptcy.
SDRL's Altman-Z score of 1.71 is in line compared to the rest of the industry. SDRL outperforms 44.26% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SDRL is not too dependend on debt financing.
The Debt to Equity ratio of SDRL (0.21) is better than 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.14
WACC8.82%
2.3 Liquidity
SDRL has a Current Ratio of 1.87. This is a normal value and indicates that SDRL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, SDRL is in line with its industry, outperforming 49.18% of the companies in the same industry.
SDRL has a Quick Ratio of 1.87. This is a normal value and indicates that SDRL is financially healthy and should not expect problems in meeting its short term obligations.
SDRL has a Quick ratio of 1.87. This is in the better half of the industry: SDRL outperforms 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The earnings per share for SDRL have decreased strongly by -81.69% in the last year.
SDRL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.36%.
SDRL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.17% yearly.
EPS 1Y (TTM)-81.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-198.55%
Revenue 1Y (TTM)-13.36%
Revenue growth 3Y11.17%
Revenue growth 5YN/A
Sales Q2Q%0.53%
3.2 Future
SDRL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.81% yearly.
Based on estimates for the next years, SDRL will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y-108.06%
EPS Next 2Y-34.67%
EPS Next 3Y15.81%
EPS Next 5YN/A
Revenue Next Year-2.46%
Revenue Next 2Y-1.27%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Earnings ratio of 46.92 indicates a quite expensive valuation of SDRL.
Based on the Price/Earnings ratio, SDRL is valued a bit more expensive than 67.21% of the companies in the same industry.
SDRL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.55.
SDRL is valuated rather expensively with a Price/Forward Earnings ratio of 23.35.
Based on the Price/Forward Earnings ratio, SDRL is valued a bit more expensive than the industry average as 65.57% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, SDRL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.92 | ||
| Fwd PE | 23.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SDRL is valued a bit more expensive than the industry average as 68.85% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.04 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SDRL's earnings are expected to grow with 15.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-34.67%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
No dividends for SDRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.5
+1.21 (+4.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners106.65%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change73.6%
Market Cap1.90B
Analysts81.54
Price Target42.26 (38.56%)
Short Float %10.17%
Short Ratio7.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-175.94%
Min EPS beat(2)-207.4%
Max EPS beat(2)-144.47%
EPS beat(4)2
Avg EPS beat(4)161.43%
Min EPS beat(4)-207.4%
Max EPS beat(4)552.71%
EPS beat(8)6
Avg EPS beat(8)95.36%
EPS beat(12)8
Avg EPS beat(12)67.03%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-4.58%
Max Revenue beat(4)6.45%
Revenue beat(8)5
Avg Revenue beat(8)1.04%
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)2.29%
EPS NQ rev (1m)-29.34%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-130.39%
EPS NY rev (3m)-127.72%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.92 | ||
| Fwd PE | 23.35 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)0.65
EY2.13%
EPS(NY)1.31
Fwd EY4.28%
FCF(TTM)-3.13
FCFYN/A
OCF(TTM)-0.58
OCFYN/A
SpS21.77
BVpS46.14
TBVpS46.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 2.68% | ||
| ROCE | 1.54% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.37% | ||
| ROICexgc | 1.37% | ||
| OM | 4.13% | ||
| PM (TTM) | 5.68% | ||
| GM | 26.64% | ||
| FCFM | N/A |
ROA(3y)52.44%
ROA(5y)4.92%
ROE(3y)84.97%
ROE(5y)N/A
ROIC(3y)4.58%
ROIC(5y)N/A
ROICexc(3y)5.51%
ROICexc(5y)N/A
ROICexgc(3y)5.51%
ROICexgc(5y)N/A
ROCE(3y)5.79%
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 3Y38.61%
GM growth 5YN/A
F-Score2
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 80.3% | ||
| Cap/Sales | 11.73% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 1.71 |
F-Score2
WACC8.82%
ROIC/WACC0.14
Cap/Depr(3y)85.55%
Cap/Depr(5y)56.63%
Cap/Sales(3y)10.93%
Cap/Sales(5y)7.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-81.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-198.55%
EPS Next Y-108.06%
EPS Next 2Y-34.67%
EPS Next 3Y15.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.36%
Revenue growth 3Y11.17%
Revenue growth 5YN/A
Sales Q2Q%0.53%
Revenue Next Year-2.46%
Revenue Next 2Y-1.27%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y-83.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year65.11%
EBIT Next 3Y43.05%
EBIT Next 5YN/A
FCF growth 1Y-137.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-69.34%
OCF growth 3YN/A
OCF growth 5YN/A