SEADRILL LIMITED (SDRL) Stock Fundamental Analysis
USA - NYSE:SDRL - BMG7997W1029 - Common Stock
31.71 USD
+0.29 (+0.92%)
31.71 USD
0 (0%)
SDRL gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of SDRL have multiple concerns. SDRL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SDRL was profitable.
In the past year SDRL has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: SDRL reported negative net income in multiple years.
In multiple years SDRL reported negative operating cash flow during the last 5 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.
Measured over the past 3 years, the Average Return On Invested Capital for SDRL is below the industry average of 8.05%.
| 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 of 5.68%. This is comparable to the rest of the industry: SDRL outperforms 54.10% of its industry peers.
SDRL has a Operating Margin of 4.13%. This is in the lower half of the industry: SDRL underperforms 72.13% of its industry peers.
The Gross Margin of SDRL (26.64%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SDRL has grown nicely.
| 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.
SDRL has less shares outstanding than it did 1 year ago.
SDRL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that SDRL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SDRL (1.78) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.21 indicates that SDRL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.21, SDRL is doing good in the industry, outperforming 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC0.13
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.87 indicates that SDRL should not have too much problems paying 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.
A Quick Ratio of 1.87 indicates that SDRL should not have too much problems paying its short term obligations.
The Quick ratio of SDRL (1.87) is better than 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.
Looking at the last year, SDRL shows a very negative growth in Revenue. The Revenue has decreased by -13.36% in the last year.
Measured over the past years, SDRL shows a quite strong growth in Revenue. The Revenue has been growing by 11.17% on average per year.
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 12.20% yearly.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y-73.49%
EPS Next 2Y-23.19%
EPS Next 3Y12.2%
EPS Next 5YN/A
Revenue Next Year-2.74%
Revenue Next 2Y-1.2%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
3.3 Evolution
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
Based on the Price/Earnings ratio of 48.78, the valuation of SDRL can be described as expensive.
Based on the Price/Earnings ratio, SDRL is valued a bit more expensive than the industry average as 67.21% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.41. SDRL is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 17.57, SDRL is valued on the expensive side.
SDRL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SDRL to the average of the S&P500 Index (22.87), we can say SDRL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.78 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SDRL is valued a bit more expensive than the industry average as 73.77% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SDRL's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.19%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
No dividends for SDRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.71
+0.29 (+0.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.78%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change69.67%
Market Cap1.97B
Analysts82.86
Price Target42.26 (33.27%)
Short Float %11.12%
Short Ratio8.42
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)2.93%
PT rev (3m)2.29%
EPS NQ rev (1m)18.17%
EPS NQ rev (3m)79.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.1%
Revenue NQ rev (1m)2.8%
Revenue NQ rev (3m)5.17%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.78 | ||
| Fwd PE | 17.57 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)0.65
EY2.05%
EPS(NY)1.81
Fwd EY5.69%
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 | 1.78 |
F-Score2
WACC9.4%
ROIC/WACC0.13
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-73.49%
EPS Next 2Y-23.19%
EPS Next 3Y12.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.36%
Revenue growth 3Y11.17%
Revenue growth 5YN/A
Sales Q2Q%0.53%
Revenue Next Year-2.74%
Revenue Next 2Y-1.2%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y-83.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year73.61%
EBIT Next 3Y41.18%
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