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DIAMOND OFFSHORE DRILLING IN (DO) Stock Fundamental Analysis

NYSE:DO - New York Stock Exchange, Inc. - US25271C2017 - Common Stock - Currency: USD

13.99  -0.35 (-2.44%)

After market: 13.99 0 (0%)

Fundamental Rating

3

DO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of DO have multiple concerns. DO has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

DO had negative earnings in the past year.
In the past year DO had a positive cash flow from operations.
DO had negative earnings in each of the past 5 years.
Of the past 5 years DO 4 years had a positive operating cash flow.
DO Yearly Net Income VS EBIT VS OCF VS FCFDO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B -2B

1.2 Ratios

DO has a Return On Assets of -16.02%. This is amonst the worse of the industry: DO underperforms 93.55% of its industry peers.
With a Return On Equity value of -40.18%, DO is not doing good in the industry: 88.71% of the companies in the same industry are doing better.
DO has a Return On Invested Capital (5.04%) which is in line with its industry peers.
Industry RankSector Rank
ROA -16.02%
ROE -40.18%
ROIC 5.04%
ROA(3y)-49.69%
ROA(5y)-36.11%
ROE(3y)-100.26%
ROE(5y)-75.03%
ROIC(3y)N/A
ROIC(5y)N/A
DO Yearly ROA, ROE, ROICDO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200 -250

1.3 Margins

With a Operating Margin value of 8.50%, DO perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
DO has a Gross Margin (26.82%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DO has declined.
Industry RankSector Rank
OM 8.5%
PM (TTM) N/A
GM 26.82%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y28.03%
GM growth 5Y-6.9%
DO Yearly Profit, Operating, Gross MarginsDO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200

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3

2. Health

2.1 Basic Checks

DO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DO has more shares outstanding than it did 1 year ago.
DO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DO has a worse debt to assets ratio.
DO Yearly Shares OutstandingDO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
DO Yearly Total Debt VS Total AssetsDO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

DO has an Altman-Z score of 1.56. This is a bad value and indicates that DO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.56, DO perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
DO has a Debt/Equity ratio of 0.95. This is a neutral value indicating DO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, DO is doing worse than 77.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Altman-Z 1.56
ROIC/WACC0.71
WACC7.12%
DO Yearly LT Debt VS Equity VS FCFDO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

DO has a Current Ratio of 1.77. This is a normal value and indicates that DO is financially healthy and should not expect problems in meeting its short term obligations.
DO has a Current ratio (1.77) which is in line with its industry peers.
A Quick Ratio of 1.77 indicates that DO should not have too much problems paying its short term obligations.
DO has a Quick ratio of 1.77. This is in the better half of the industry: DO outperforms 74.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.77
DO Yearly Current Assets VS Current LiabilitesDO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

3. Growth

3.1 Past

The earnings per share for DO have decreased strongly by -452.27% in the last year.
DO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.12%.
Measured over the past years, DO shows a decrease in Revenue. The Revenue has been decreasing by -0.50% on average per year.
EPS 1Y (TTM)-452.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%325%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y12.91%
Revenue growth 5Y-0.5%
Sales Q2Q%-9.34%

3.2 Future

Based on estimates for the next years, DO will show a very strong growth in Earnings Per Share. The EPS will grow by 43.64% on average per year.
Based on estimates for the next years, DO will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y118.19%
EPS Next 2Y65.87%
EPS Next 3Y43.64%
EPS Next 5YN/A
Revenue Next Year-3.83%
Revenue Next 2Y3.49%
Revenue Next 3Y3.86%
Revenue Next 5YN/A

3.3 Evolution

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.
DO Yearly Revenue VS EstimatesDO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
DO Yearly EPS VS EstimatesDO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4 -6 -8

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4

4. Valuation

4.1 Price/Earnings Ratio

DO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 6.80, which indicates a rather cheap valuation of DO.
DO's Price/Forward Earnings ratio is rather cheap when compared to the industry. DO is cheaper than 85.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, DO is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 6.8
DO Price Earnings VS Forward Price EarningsDO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DO is valued a bit more expensive than 70.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.23
DO Per share dataDO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DO's earnings are expected to grow with 43.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y65.87%
EPS Next 3Y43.64%

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0

5. Dividend

5.1 Amount

No dividends for DO!.
Industry RankSector Rank
Dividend Yield N/A

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DIAMOND OFFSHORE DRILLING IN

NYSE:DO (9/3/2024, 8:04:01 PM)

After market: 13.99 0 (0%)

13.99

-0.35 (-2.44%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)08-06 2024-08-06/amc
Earnings (Next)11-04 2024-11-04/amc
Inst Owners0.02%
Inst Owner Change0%
Ins Owners70.89%
Ins Owner Change0%
Market Cap1.44B
Analysts86.67
Price Target19.79 (41.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4093.42%
Min EPS beat(2)-3.77%
Max EPS beat(2)8190.61%
EPS beat(4)1
Avg EPS beat(4)1648.02%
Min EPS beat(4)-1282.15%
Max EPS beat(4)8190.61%
EPS beat(8)4
Avg EPS beat(8)859.69%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.68%
Min Revenue beat(2)-9.3%
Max Revenue beat(2)-6.06%
Revenue beat(4)0
Avg Revenue beat(4)-8.08%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)-6.06%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)7.81%
EPS NQ rev (3m)13.96%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)8.4%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.96%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 6.8
P/S 1.35
P/FCF N/A
P/OCF 15.87
P/B 2.15
P/tB 2.15
EV/EBITDA 9.23
EPS(TTM)-2.43
EYN/A
EPS(NY)2.06
Fwd EY14.71%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.88
OCFY6.3%
SpS10.37
BVpS6.5
TBVpS6.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -16.02%
ROE -40.18%
ROCE 6.38%
ROIC 5.04%
ROICexc 5.7%
ROICexgc 5.7%
OM 8.5%
PM (TTM) N/A
GM 26.82%
FCFM N/A
ROA(3y)-49.69%
ROA(5y)-36.11%
ROE(3y)-100.26%
ROE(5y)-75.03%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y28.03%
GM growth 5Y-6.9%
F-Score5
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Debt/EBITDA 3.05
Cap/Depr 104.42%
Cap/Sales 11.57%
Interest Coverage 2.46
Cash Conversion 43.45%
Profit Quality N/A
Current Ratio 1.77
Quick Ratio 1.77
Altman-Z 1.56
F-Score5
WACC7.12%
ROIC/WACC0.71
Cap/Depr(3y)77.68%
Cap/Depr(5y)76.79%
Cap/Sales(3y)10.75%
Cap/Sales(5y)18.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-452.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%325%
EPS Next Y118.19%
EPS Next 2Y65.87%
EPS Next 3Y43.64%
EPS Next 5YN/A
Revenue 1Y (TTM)11.12%
Revenue growth 3Y12.91%
Revenue growth 5Y-0.5%
Sales Q2Q%-9.34%
Revenue Next Year-3.83%
Revenue Next 2Y3.49%
Revenue Next 3Y3.86%
Revenue Next 5YN/A
EBIT growth 1Y607.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year750.32%
EBIT Next 3Y160.76%
EBIT Next 5YN/A
FCF growth 1Y-243.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.82%
OCF growth 3Y11.93%
OCF growth 5Y-44.91%