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

Last update: Jun 11, 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.

Understanding NYSE:NE's Growth Score

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 39.33%, which is quite impressive.
The Revenue has grown by 66.76% in the past year. This is a very strong growth!
Based on estimates for the next years, NE will show a very strong growth in Earnings Per Share. The EPS will grow by 57.07% on average per year.
The Revenue is expected to grow by 24.53% on average over the next years. This is a very strong growth
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Valuation looks like for NYSE:NE

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:NE has earned a 6 for valuation:

Compared to an average S&P500 Price/Earnings ratio of 28.19, NE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 7.68, the valuation of NE can be described as very cheap.
Based on the Price/Forward Earnings ratio, NE is valued cheaper than 83.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NE to the average of the S&P500 Index (19.98), we can say NE is valued rather cheaply.
NE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NE may justify a higher PE ratio.
NE's earnings are expected to grow with 82.65% in the coming years. This may justify a more expensive valuation.

What does the Health looks like 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 6 out of 10:

NE has an Altman-Z score of 3.51. This indicates that NE is financially healthy and has little risk of bankruptcy at the moment.
NE has a Altman-Z score of 3.51. This is in the better half of the industry: NE outperforms 80.00% of its industry peers.
The Debt to FCF ratio of NE is 3.56, which is a good value as it means it would take NE, 3.56 years of fcf income to pay off all of its debts.
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 72.31% of its industry peers.
NE has a better Quick ratio (1.65) than 64.62% of its industry peers.

How do we evaluate the 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:

With a decent Return On Assets value of 8.75%, NE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NE's Return On Equity of 12.29% is fine compared to the rest of the industry. NE outperforms 61.54% of its industry peers.
NE has a Return On Invested Capital of 11.53%. This is amongst the best in the industry. NE outperforms 81.54% of its industry peers.
With an excellent Profit Margin value of 18.61%, NE belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
NE's Operating Margin of 23.77% is amongst the best of the industry. NE outperforms 89.23% of its industry peers.
NE has a Gross Margin of 40.37%. This is in the better half of the industry: NE outperforms 80.00% 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

Keep in mind

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.