NOBLE CORP PLC (NE) Stock Fundamental Analysis
NYSE:NE - New York Stock Exchange, Inc. - GB00BMXNWH07 - Common Stock - Currency: USD
NE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. While NE belongs to the best of the industry regarding profitability, there are concerns on its financial health. NE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NE had positive earnings in the past year.
In the past year NE had a positive cash flow from operations.
NE had positive earnings in 4 of the past 5 years.
In the past 5 years NE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NE (5.70%) is better than 64.52% of its industry peers.
The Return On Equity of NE (9.64%) is comparable to the rest of the industry.
NE has a Return On Invested Capital of 7.80%. This is in the better half of the industry: NE outperforms 61.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NE is in line with the industry average of 8.11%.
The last Return On Invested Capital (7.80%) for NE is above the 3 year average (7.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 9.64% | ||
| ROIC | 7.8% |
ROA(3y)5.89%
ROA(5y)-11.73%
ROE(3y)8.87%
ROE(5y)N/A
ROIC(3y)7.22%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 14.66%, NE belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Profit Margin of NE has declined.
Looking at the Operating Margin, with a value of 22.76%, NE belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
With an excellent Gross Margin value of 41.38%, NE belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Gross Margin of NE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.76% | ||
| PM (TTM) | 14.66% | ||
| GM | 41.38% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-29.33%
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NE is destroying value.
The number of shares outstanding for NE has been increased compared to 1 year ago.
NE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NE has a worse debt to assets ratio.
2.2 Solvency
NE has a debt to FCF ratio of 24.70. This is a negative value and a sign of low solvency as NE would need 24.70 years to pay back of all of its debts.
NE has a Debt to FCF ratio of 24.70. This is comparable to the rest of the industry: NE outperforms 40.32% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that NE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, NE is in line with its industry, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 24.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC8.59%
2.3 Liquidity
NE has a Current Ratio of 1.55. This is a normal value and indicates that NE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NE (1.55) is worse than 67.74% of its industry peers.
A Quick Ratio of 1.55 indicates that NE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.55, NE is in line with its industry, outperforming 59.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
NE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.23%, which is quite impressive.
Measured over the past years, NE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.18% on average per year.
Looking at the last year, NE shows a quite strong growth in Revenue. The Revenue has grown by 18.11% in the last year.
The Revenue has been growing by 18.56% on average over the past years. This is quite good.
EPS 1Y (TTM)26.23%
EPS 3Y-17.18%
EPS 5YN/A
EPS Q2Q%43.59%
Revenue 1Y (TTM)18.11%
Revenue growth 3Y53.36%
Revenue growth 5Y18.56%
Sales Q2Q%44.23%
3.2 Future
NE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.78% yearly.
Based on estimates for the next years, NE will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y-30.49%
EPS Next 2Y10.95%
EPS Next 3Y3.78%
EPS Next 5YN/A
Revenue Next Year11.74%
Revenue Next 2Y8.75%
Revenue Next 3Y5.15%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NE is valuated reasonably with a Price/Earnings ratio of 8.64.
Compared to the rest of the industry, the Price/Earnings ratio of NE indicates a somewhat cheap valuation: NE is cheaper than 77.42% of the companies listed in the same industry.
NE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.33.
The Price/Forward Earnings ratio is 12.43, which indicates a correct valuation of NE.
NE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, NE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NE is valued a bit more expensive than the industry average as 62.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.53 | ||
| EV/EBITDA | 4.36 |
4.3 Compensation for Growth
The decent profitability rating of NE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.95%
EPS Next 3Y3.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.79%, NE is a good candidate for dividend investing.
The stock price of NE dropped by -39.97% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.10, NE pays a better dividend. On top of this NE pays more dividend than 98.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, NE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.79% |
5.2 History
On average, the dividend of NE grows each year by 7.43%, which is quite nice.
NE has been paying a dividend for over 5 years, so it has already some track record.
The dividend of NE decreased recently.
Dividend Growth(5Y)7.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NE pays out 61.97% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.97%
EPS Next 2Y10.95%
EPS Next 3Y3.78%
19.96
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners74.76%
Inst Owner Change0%
Ins Owners1.85%
Ins Owner Change6.2%
Market Cap3.17B
Analysts80.91
Price Target39.04 (95.59%)
Short Float %9.48%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.79% |
Yearly Dividend1.85
Dividend Growth(5Y)7.43%
DP61.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.04%
Min EPS beat(2)-30.15%
Max EPS beat(2)-13.94%
EPS beat(4)1
Avg EPS beat(4)-11.88%
Min EPS beat(4)-30.15%
Max EPS beat(4)10.37%
EPS beat(8)3
Avg EPS beat(8)-10.58%
EPS beat(12)4
Avg EPS beat(12)-33.76%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.36%
Min Revenue beat(2)3.06%
Max Revenue beat(2)3.67%
Revenue beat(4)4
Avg Revenue beat(4)4.3%
Min Revenue beat(4)3.06%
Max Revenue beat(4)5.98%
Revenue beat(8)8
Avg Revenue beat(8)4.78%
Revenue beat(12)10
Avg Revenue beat(12)3.45%
Revenue beat(16)11
Avg Revenue beat(16)0.51%
PT rev (1m)-5.82%
PT rev (3m)-17.77%
EPS NQ rev (1m)-3.82%
EPS NQ rev (3m)-29.3%
EPS NY rev (1m)-41.22%
EPS NY rev (3m)-43.65%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 12.43 | ||
| P/S | 1.04 | ||
| P/FCF | 39.53 | ||
| P/OCF | 4.83 | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 4.36 |
EPS(TTM)2.31
EY11.57%
EPS(NY)1.61
Fwd EY8.04%
FCF(TTM)0.5
FCFY2.53%
OCF(TTM)4.13
OCFY20.68%
SpS19.26
BVpS29.3
TBVpS29.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 9.64% | ||
| ROCE | 9.87% | ||
| ROIC | 7.8% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 8.08% | ||
| OM | 22.76% | ||
| PM (TTM) | 14.66% | ||
| GM | 41.38% | ||
| FCFM | 2.62% |
ROA(3y)5.89%
ROA(5y)-11.73%
ROE(3y)8.87%
ROE(5y)N/A
ROIC(3y)7.22%
ROIC(5y)N/A
ROICexc(3y)7.73%
ROICexc(5y)N/A
ROICexgc(3y)7.76%
ROICexgc(5y)N/A
ROCE(3y)9.13%
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 3Y-29.33%
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y-0.65%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 24.7 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 134.22% | ||
| Cap/Sales | 18.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.28% | ||
| Profit Quality | 17.88% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | N/A |
F-Score5
WACC8.59%
ROIC/WACC0.91
Cap/Depr(3y)129.61%
Cap/Depr(5y)106.63%
Cap/Sales(3y)15.65%
Cap/Sales(5y)16.47%
Profit Quality(3y)38.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.23%
EPS 3Y-17.18%
EPS 5YN/A
EPS Q2Q%43.59%
EPS Next Y-30.49%
EPS Next 2Y10.95%
EPS Next 3Y3.78%
EPS Next 5YN/A
Revenue 1Y (TTM)18.11%
Revenue growth 3Y53.36%
Revenue growth 5Y18.56%
Sales Q2Q%44.23%
Revenue Next Year11.74%
Revenue Next 2Y8.75%
Revenue Next 3Y5.15%
Revenue Next 5YN/A
EBIT growth 1Y13.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year73.98%
EBIT Next 3Y26.1%
EBIT Next 5YN/A
FCF growth 1Y-51.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.13%
OCF growth 3Y373.66%
OCF growth 5Y28.54%