NYSE:NE, a growth stock which is not overvalued.

Last update: Dec 22, 2023

Discover NOBLE CORP PLC (NYSE:NE), an undervalued growth gem identified by our stock screener. NYSE:NE is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Evaluating Growth: NYSE:NE

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:

NE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 330.23%, which is quite impressive.
Looking at the last year, NE shows a very strong growth in Revenue. The Revenue has grown by 157.00%.
NE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 82.96% yearly.
Based on estimates for the next years, NE will show a very strong growth in Revenue. The Revenue will grow by 25.79% on average per year.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Valuation Metrics for NYSE:NE

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:NE scores a 6 out of 10:

The Price/Forward Earnings ratio is 7.87, which indicates a rather cheap valuation of NE.
Based on the Price/Forward Earnings ratio, NE is valued a bit cheaper than 73.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.19. NE is valued rather cheaply when compared to this.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NE's earnings are expected to grow with 82.96% in the coming years.

Health Analysis for NYSE:NE

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

An Altman-Z score of 3.85 indicates that NE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.85, NE belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
NE has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
NE has a Debt to Equity ratio of 0.15. This is in the better half of the industry: NE outperforms 69.23% of its industry peers.
NE's Quick ratio of 2.00 is fine compared to the rest of the industry. NE outperforms 78.46% of its industry peers.

Assessing Profitability for NYSE:NE

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:NE was assigned a score of 6 for profitability:

NE's Return On Assets of 8.87% is amongst the best of the industry. NE outperforms 81.54% of its industry peers.
NE's Return On Equity of 12.19% is fine compared to the rest of the industry. NE outperforms 70.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.23%, NE is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
NE has a Profit Margin of 18.19%. This is amongst the best in the industry. NE outperforms 96.92% of its industry peers.
The Operating Margin of NE (23.96%) is better than 93.85% of its industry peers.
The Gross Margin of NE (40.06%) is better than 78.46% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.