Looking for growth without the hefty price tag? Consider NYSE:NE.

Last update: Oct 19, 2023

Take a closer look at NOBLE CORP PLC (NYSE:NE), an affordable growth stock uncovered by our stock screener. NYSE:NE boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Looking at the Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:NE has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 1750.00% over the past year.
NE shows a strong growth in Revenue. In the last year, the Revenue has grown by 130.63%.
Based on estimates for the next years, NE will show a very strong growth in Earnings Per Share. The EPS will grow by 87.25% on average per year.
NE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 36.23% yearly.
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.

How do we evaluate the Valuation for NYSE:NE?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:NE was assigned a score of 5 for valuation:

A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of NE.
Based on the Price/Forward Earnings ratio, NE is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
NE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.74.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NE's earnings are expected to grow with 87.25% in the coming years.

Assessing Health Metrics for NYSE:NE

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:NE, the assigned 5 for health provides valuable insights:

NE has an Altman-Z score of 3.56. This indicates that NE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.56, NE is doing good in the industry, outperforming 78.46% of the companies in the same industry.
NE has a better Debt to FCF ratio (4.55) than 63.08% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that NE is not too dependend on debt financing.
NE has a Debt to Equity ratio of 0.16. This is in the better half of the industry: NE outperforms 69.23% of its industry peers.
NE has a better Quick ratio (1.82) than 73.85% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:NE has earned a 5 out of 10:

NE has a better Return On Assets (6.59%) than 73.85% of its industry peers.
The Return On Invested Capital of NE (7.80%) is better than 63.08% of its industry peers.
NE has a Profit Margin of 15.73%. This is amongst the best in the industry. NE outperforms 93.85% of its industry peers.
NE has a Operating Margin of 21.23%. This is amongst the best in the industry. NE outperforms 90.77% of its industry peers.
NE has a better Gross Margin (37.14%) than 73.85% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of NE

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.