NOBLE CORP PLC (NE)
GB00BMXNWH07 - Common Stock
We assign a fundamental rating of 5 out of 10 to NE. NE was compared to 60 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of NE while its profitability can be described as average. NE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NE was profitable.
In the past year NE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NE reported negative net income in multiple years.
In the past 5 years NE always reported a positive cash flow from operatings.
1.2 Ratios
NE's Return On Assets of 6.24% is fine compared to the rest of the industry. NE outperforms 63.33% of its industry peers.
With a Return On Equity value of 10.70%, NE perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
The Return On Invested Capital of NE (8.10%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 10.7% | ||
| ROIC | 8.1% |
ROA(3y)9.66%
ROA(5y)-14.56%
ROE(3y)13.48%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NE has a Profit Margin of 18.08%. This is amongst the best in the industry. NE outperforms 93.33% of its industry peers.
With an excellent Operating Margin value of 22.86%, NE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
With an excellent Gross Margin value of 41.34%, NE belongs to the best of the industry, outperforming 85.00% 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 | 22.86% | ||
| PM (TTM) | 18.08% | ||
| GM | 41.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.75%
GM growth 5Y1%
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.
Compared to 5 years ago, NE has less shares outstanding
NE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that NE is in the distress zone and has some risk of bankruptcy.
NE has a Altman-Z score (1.75) which is comparable to the rest of the industry.
NE has a debt to FCF ratio of 8.77. This is a slightly negative value and a sign of low solvency as NE would need 8.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.77, NE is in line with its industry, outperforming 45.00% of the companies in the same industry.
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 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.91
WACC8.9%
2.3 Liquidity
NE has a Current Ratio of 1.57. 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 (1.57) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.57 indicates that NE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.57, NE is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.68% over the past year.
Looking at the last year, NE shows a small growth in Revenue. The Revenue has grown by 7.97% in the last year.
The Revenue has been growing by 19.05% on average over the past years. This is quite good.
EPS 1Y (TTM)15.68%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y38.99%
Revenue growth 5Y19.05%
Sales Q2Q%14.78%
3.2 Future
The Earnings Per Share is expected to grow by 42.42% on average over the next years. This is a very strong growth
NE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.73% yearly.
EPS Next Y62.56%
EPS Next 2Y42.26%
EPS Next 3Y42.42%
EPS Next 5YN/A
Revenue Next Year15.12%
Revenue Next 2Y19.62%
Revenue Next 3Y15.73%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.21 indicates a correct valuation of NE.
NE's Price/Earnings ratio is a bit cheaper when compared to the industry. NE is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, NE is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.37 indicates a reasonable valuation of NE.
Based on the Price/Forward Earnings ratio, NE is valued a bit cheaper than 76.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. NE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.21 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
NE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.13 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
NE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NE's earnings are expected to grow with 42.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y42.26%
EPS Next 3Y42.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.74%, NE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.50, NE pays a better dividend. On top of this NE pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, NE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
5.2 History
The dividend of NE decreases each year by -14.22%.
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)-14.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NE pays out 50.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP50.77%
EPS Next 2Y42.26%
EPS Next 3Y42.42%
NOBLE CORP PLC
NYSE:NE (11/21/2024, 8:04:00 PM)
After market: 34.999 +0.3 (+0.86%)34.7
+0.32 (+0.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.21 | ||
| Fwd PE | 9.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 10.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.86% | ||
| PM (TTM) | 18.08% | ||
| GM | 41.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.68%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y62.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.97%
Revenue growth 3Y38.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y