SEADRILL LIMITED (SDRL) Stock Fundamental Analysis
NYSE:SDRL - BMG7997W1029 - Common Stock
31.4 USD
+0.03 (+0.1%)
31.4 USD
0 (0%)
Overall SDRL gets a fundamental rating of 2 out of 10. We evaluated SDRL 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
SDRL had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 1.89%, SDRL is in line with its industry, outperforming 40.98% of the companies in the same industry.
SDRL's Return On Equity of 2.68% is on the low side compared to the rest of the industry. SDRL is outperformed by 65.57% of its industry peers.
SDRL has a Return On Invested Capital of 1.22%. This is amonst the worse of the industry: SDRL underperforms 80.33% of its industry peers.
SDRL had an Average Return On Invested Capital over the past 3 years of 4.58%. This is below the industry average of 8.01%.
| 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 in line with 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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SDRL is destroying value.
Compared to 1 year ago, SDRL has less shares outstanding
The debt/assets ratio for SDRL is higher compared to a year ago.
2.2 Solvency
SDRL has an Altman-Z score of 1.78. This is a bad value and indicates that SDRL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, SDRL is in line with its industry, outperforming 52.46% of the companies in the same industry.
SDRL has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
SDRL has a Debt to Equity ratio of 0.21. This is in the better half of the industry: SDRL outperforms 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC0.13
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.87 indicates that SDRL should not have too much problems paying its short term obligations.
SDRL has a Current ratio (1.87) which is in line with its industry peers.
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.
Looking at the Quick ratio, with a value of 1.87, SDRL is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
SDRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.69%.
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
The Earnings Per Share is expected to grow by 12.20% on average over the next years. This is quite good.
Based on estimates for the next years, SDRL will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y-73.49%
EPS Next 2Y-23.19%
EPS Next 3Y12.2%
EPS Next 5YN/A
Revenue Next Year-3.17%
Revenue Next 2Y-1.03%
Revenue Next 3Y4.57%
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
SDRL is valuated quite expensively with a Price/Earnings ratio of 48.31.
67.21% of the companies in the same industry are cheaper than SDRL, based on the Price/Earnings ratio.
SDRL is valuated expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.39, the valuation of SDRL can be described as rather expensive.
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.
SDRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.31 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SDRL is valued a bit more expensive than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
SDRL's earnings are expected to grow with 12.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.19%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
SDRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.4
+0.03 (+0.1%)
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 Change50.66%
Market Cap1.95B
Analysts85.33
Price Target40.55 (29.14%)
Short Float %12.58%
Short Ratio7.14
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)0.32%
PT rev (3m)-13.59%
EPS NQ rev (1m)-8.21%
EPS NQ rev (3m)-56.06%
EPS NY rev (1m)-8.79%
EPS NY rev (3m)-30.32%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)-4.71%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.31 | ||
| Fwd PE | 17.39 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)0.65
EY2.07%
EPS(NY)1.81
Fwd EY5.75%
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
WACC9.43%
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-3.17%
Revenue Next 2Y-1.03%
Revenue Next 3Y4.57%
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