ODFJELL DRILLING LTD (ODL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ODL - BMG671801022 - Common Stock
93.6 NOK
+2.3 (+2.52%)
Overall ODL gets a fundamental rating of 5 out of 10. We evaluated ODL against 38 industry peers in the Energy Equipment & Services industry. ODL has a medium profitability rating, but doesn't score so well on its financial health evaluation. ODL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ODL had positive earnings in the past year.
- ODL had a positive operating cash flow in the past year.
- Each year in the past 5 years ODL has been profitable.
- ODL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ODL (6.52%) is better than 68.42% of its industry peers.
- The Return On Equity of ODL (9.98%) is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 8.98%, ODL is doing good in the industry, outperforming 60.53% of the companies in the same industry.
- ODL had an Average Return On Invested Capital over the past 3 years of 5.78%. This is below the industry average of 10.43%.
- The last Return On Invested Capital (8.98%) for ODL is above the 3 year average (5.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.52% | ||
| ROE | 9.98% | ||
| ROIC | 8.98% |
ROA(3y)6.13%
ROA(5y)5.35%
ROE(3y)10.42%
ROE(5y)9.81%
ROIC(3y)5.78%
ROIC(5y)5.92%
1.3 Margins
- ODL has a better Profit Margin (16.61%) than 78.95% of its industry peers.
- In the last couple of years the Profit Margin of ODL has grown nicely.
- ODL's Operating Margin of 26.11% is amongst the best of the industry. ODL outperforms 86.84% of its industry peers.
- ODL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.11% | ||
| PM (TTM) | 16.61% | ||
| GM | N/A |
OM growth 3Y1.24%
OM growth 5Y1.75%
PM growth 3Y-13.55%
PM growth 5Y10.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ODL is destroying value.
- The number of shares outstanding for ODL has been increased compared to 1 year ago.
- The number of shares outstanding for ODL has been increased compared to 5 years ago.
- ODL has a better debt/assets ratio than last year.
2.2 Solvency
- ODL has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as ODL would need 2.82 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.82, ODL is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
- A Debt/Equity ratio of 0.34 indicates that ODL is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.34, ODL is doing good in the industry, outperforming 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC9.24%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that ODL may have some problems paying its short term obligations.
- ODL has a worse Current ratio (0.91) than 86.84% of its industry peers.
- A Quick Ratio of 0.91 indicates that ODL may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.91, ODL is doing worse than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- ODL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.32%, which is quite impressive.
- ODL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.04% yearly.
- The Revenue has grown by 12.71% in the past year. This is quite good.
- ODL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.20% yearly.
EPS 1Y (TTM)90.32%
EPS 3Y-2.35%
EPS 5Y14.04%
EPS Q2Q%187.5%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y10.65%
Revenue growth 5Y-1.2%
Sales Q2Q%25.31%
3.2 Future
- ODL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.35% yearly.
- ODL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.51% yearly.
EPS Next Y163.72%
EPS Next 2Y103.22%
EPS Next 3Y57.68%
EPS Next 5Y25.35%
Revenue Next Year15.47%
Revenue Next 2Y16.28%
Revenue Next 3Y9.69%
Revenue Next 5Y4.51%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- ODL is valuated correctly with a Price/Earnings ratio of 16.05.
- ODL's Price/Earnings ratio is in line with the industry average.
- ODL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- ODL is valuated reasonably with a Price/Forward Earnings ratio of 8.49.
- Based on the Price/Forward Earnings ratio, ODL is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
- ODL is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
- ODL'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 ODL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 6.47 |
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.
- ODL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ODL's earnings are expected to grow with 57.68% in the coming years.
PEG (NY)0.1
PEG (5Y)1.14
EPS Next 2Y103.22%
EPS Next 3Y57.68%
5. Dividend
5.1 Amount
- ODL has a Yearly Dividend Yield of 7.48%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.56, ODL pays a better dividend. On top of this ODL pays more dividend than 84.21% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ODL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
5.2 History
- On average, the dividend of ODL grows each year by 70.82%, which is quite nice.
Dividend Growth(5Y)70.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ODL pays out 88.10% of its income as dividend. This is not a sustainable payout ratio.
- ODL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP88.1%
EPS Next 2Y103.22%
EPS Next 3Y57.68%
ODFJELL DRILLING LTD / ODL.OL FAQ
What is the fundamental rating for ODL stock?
ChartMill assigns a fundamental rating of 5 / 10 to ODL.OL.
What is the valuation status of ODFJELL DRILLING LTD (ODL.OL) stock?
ChartMill assigns a valuation rating of 6 / 10 to ODFJELL DRILLING LTD (ODL.OL). This can be considered as Fairly Valued.
What is the profitability of ODL stock?
ODFJELL DRILLING LTD (ODL.OL) has a profitability rating of 6 / 10.
What is the earnings growth outlook for ODFJELL DRILLING LTD?
The Earnings per Share (EPS) of ODFJELL DRILLING LTD (ODL.OL) is expected to grow by 163.72% in the next year.
Is the dividend of ODFJELL DRILLING LTD sustainable?
The dividend rating of ODFJELL DRILLING LTD (ODL.OL) is 6 / 10 and the dividend payout ratio is 88.1%.