Investors should take note of NYSE:NE, a growth stock that remains attractively priced.

Last update: Feb 5, 2024

NOBLE CORP PLC (NYSE:NE) has caught the eye of our stock screener as an affordable growth stock. NYSE:NE is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Assessing Growth for NYSE:NE

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:NE scores 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.
NE shows a strong growth in Revenue. In the last year, the Revenue has grown by 157.00%.
The Earnings Per Share is expected to grow by 83.48% on average over the next years. This is a very strong growth
NE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.79% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Analyzing Valuation Metrics

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 6 for valuation:

A Price/Forward Earnings ratio of 7.37 indicates a rather cheap valuation of NE.
75.38% of the companies in the same industry are more expensive than NE, based on the Price/Forward Earnings ratio.
NE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
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 83.48% in the coming years.

A Closer Look at Health 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:

An Altman-Z score of 3.66 indicates that NE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.66, NE belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that NE is not too dependend on debt financing.
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 has a better Quick ratio (2.00) than 80.00% of its industry peers.

Evaluating Profitability: NYSE:NE

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:NE, the assigned 6 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 8.87%, NE belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
With a decent Return On Equity value of 12.19%, NE is doing good in the industry, outperforming 67.69% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.23%, NE is doing good in 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.
With an excellent Operating Margin value of 23.96%, NE belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
With a decent Gross Margin value of 40.06%, NE is doing good in the industry, outperforming 78.46% of the companies in the same industry.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.