Don't overlook NYSE:NE—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Aug 30, 2024

Our stock screening tool has identified NOBLE CORP PLC (NYSE:NE) as an undervalued gem with strong fundamentals. NYSE:NE boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Understanding NYSE:NE's Valuation Score

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 7 out of 10:

NE's Price/Earnings ratio is a bit cheaper when compared to the industry. NE is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of NE to the average of the S&P500 Index (30.07), we can say NE is valued slightly cheaper.
The Price/Forward Earnings ratio is 5.23, which indicates a rather cheap valuation of NE.
96.83% of the companies in the same industry are more expensive than NE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.69. NE is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, NE is valued a bit cheaper than 68.25% of the companies in the same industry.
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 30.18% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NE has achieved a 6:

With an excellent Return On Assets value of 10.71%, NE belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.02%, NE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
NE's Return On Invested Capital of 12.26% is amongst the best of the industry. NE outperforms 80.95% of its industry peers.
The Profit Margin of NE (22.41%) is better than 95.24% of its industry peers.
With an excellent Operating Margin value of 24.93%, NE belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
NE has a better Gross Margin (42.50%) than 84.13% of its industry peers.

Health Assessment of NYSE:NE

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:NE was assigned a score of 5 for health:

An Altman-Z score of 3.14 indicates that NE is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, NE is doing good in the industry, outperforming 74.60% of the companies in the same industry.
NE has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
NE's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. NE outperforms 71.43% of its industry peers.

Assessing Growth Metrics for NYSE:NE

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:NE, the assigned 6 reflects its growth potential:

The Earnings Per Share has grown by an impressive 64.19% over the past year.
The Revenue has grown by 22.66% in the past year. This is a very strong growth!
Measured over the past years, NE shows a quite strong growth in Revenue. The Revenue has been growing by 19.05% on average per year.
The Earnings Per Share is expected to grow by 30.18% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.28% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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.