SEADRILL LIMITED (SDRL)
BMG7997W1029 - Common Stock
Taking everything into account, SDRL scores 5 out of 10 in our fundamental rating. SDRL was compared to 65 industry peers in the Energy Equipment & Services industry. SDRL has an excellent financial health rating, but there are some minor concerns on its profitability. SDRL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SDRL was profitable.
In the past year SDRL had a positive 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 (7.11%) is better than 73.85% of its industry peers.
Looking at the Return On Equity, with a value of 10.06%, SDRL is in line with its industry, outperforming 56.92% of the companies in the same industry.
The Return On Invested Capital of SDRL (6.99%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 10.06% | ||
| ROIC | 6.99% |
ROA(3y)43.82%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 19.97%, SDRL belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
Looking at the Operating Margin, with a value of 22.57%, SDRL belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
The Gross Margin of SDRL (37.88%) is better than 70.77% of its industry peers.
In the last couple of years the Gross Margin of SDRL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.57% | ||
| PM (TTM) | 19.97% | ||
| GM | 37.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y139.92%
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 more shares outstanding
The debt/assets ratio for SDRL has been reduced compared to a year ago.
2.2 Solvency
SDRL has an Altman-Z score of 2.77. This is not the best score and indicates that SDRL is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.77, SDRL is doing good in the industry, outperforming 67.69% of the companies in the same industry.
SDRL has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as SDRL would need 3.27 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.27, SDRL is doing good in the industry, outperforming 67.69% of the companies in the same industry.
SDRL has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, SDRL is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.8
WACC8.72%
2.3 Liquidity
SDRL has a Current Ratio of 2.98. This indicates that SDRL is financially healthy and has no problem in meeting its short term obligations.
SDRL has a Current ratio of 2.98. This is in the better half of the industry: SDRL outperforms 78.46% of its industry peers.
A Quick Ratio of 2.98 indicates that SDRL has no problem at all paying its short term obligations.
SDRL has a better Quick ratio (2.98) than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
SDRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.73%.
The Revenue has grown by 48.42% in the past year. This is a very strong growth!
Measured over the past years, SDRL shows a quite strong growth in Revenue. The Revenue has been growing by 12.35% on average per year.
EPS 1Y (TTM)-94.73%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q306.52%
Revenue 1Y (TTM)48.42%
Revenue growth 3Y12.35%
Revenue growth 5YN/A
Revenue growth Q2QN/A
3.2 Future
Based on estimates for the next years, SDRL will show a very strong growth in Earnings Per Share. The EPS will grow by 34.24% on average per year.
Based on estimates for the next years, SDRL will show a quite strong growth in Revenue. The Revenue will grow by 11.47% on average per year.
EPS Next Y-40.84%
EPS Next 2Y26.35%
EPS Next 3Y34.24%
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y10.01%
Revenue Next 3Y11.47%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.30, SDRL is valued correctly.
75.38% of the companies in the same industry are more expensive than SDRL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.76, SDRL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 20.78, the valuation of SDRL can be described as rather expensive.
SDRL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SDRL is more expensive than 70.77% of the companies in the same industry.
SDRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
SDRL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SDRL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.78 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SDRL's earnings are expected to grow with 34.24% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.35%
EPS Next 3Y34.24%
5. Dividend
5.1 Amount
No dividends for SDRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SEADRILL LIMITED
NYSE:SDRL (4/19/2024, 7:15:33 PM)
After market: 49.68 0 (0%)49.68
+0.76 (+1.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 20.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 10.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.57% | ||
| PM (TTM) | 19.97% | ||
| GM | 37.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-94.73%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-40.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)48.42%
Revenue growth 3Y12.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y