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SEADRILL LIMITED (SDRL) Stock Fundamental Analysis

NYSE:SDRL - New York Stock Exchange, Inc. - BMG7997W1029 - Common Stock - Currency: USD

36.48  +0.24 (+0.66%)

After market: 36.48 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to SDRL. SDRL was compared to 58 industry peers in the Energy Equipment & Services industry. While SDRL has a great health rating, its profitability is only average at the moment. SDRL is valued quite cheap, but it does not seem to be growing. With these ratings, SDRL could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year SDRL was profitable.
In the past year SDRL had a positive cash flow from operations.
In multiple years SDRL reported negative net income over the last 5 years.
In multiple years SDRL reported negative operating cash flow during the last 5 years.
SDRL Yearly Net Income VS EBIT VS OCF VS FCFSDRL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 0 2B -2B -4B

1.2 Ratios

Looking at the Return On Assets, with a value of 11.08%, SDRL belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
SDRL's Return On Equity of 15.56% is fine compared to the rest of the industry. SDRL outperforms 70.69% of its industry peers.
SDRL's Return On Invested Capital of 6.84% is in line compared to the rest of the industry. SDRL outperforms 56.90% of its industry peers.
Industry RankSector Rank
ROA 11.08%
ROE 15.56%
ROIC 6.84%
ROA(3y)43.82%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SDRL Yearly ROA, ROE, ROICSDRL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 0 100 -100 200

1.3 Margins

SDRL has a better Profit Margin (30.43%) than 96.55% of its industry peers.
Looking at the Operating Margin, with a value of 21.55%, SDRL belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
Looking at the Gross Margin, with a value of 37.02%, SDRL is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
In the last couple of years the Gross Margin of SDRL has grown nicely.
Industry RankSector Rank
OM 21.55%
PM (TTM) 30.43%
GM 37.02%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y139.92%
GM growth 5YN/A
SDRL Yearly Profit, Operating, Gross MarginsSDRL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 0 200 -200 -400

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SDRL is destroying value.
There is no outstanding debt for SDRL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SDRL Yearly Shares OutstandingSDRL Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 20M 40M 60M 80M 100M
SDRL Yearly Total Debt VS Total AssetsSDRL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

An Altman-Z score of 2.34 indicates that SDRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SDRL (2.34) is better than 68.97% of its industry peers.
The Debt to FCF ratio of SDRL is 2.79, which is a good value as it means it would take SDRL, 2.79 years of fcf income to pay off all of its debts.
SDRL has a Debt to FCF ratio of 2.79. This is in the better half of the industry: SDRL outperforms 65.52% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that SDRL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, SDRL is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 2.79
Altman-Z 2.34
ROIC/WACC0.77
WACC8.88%
SDRL Yearly LT Debt VS Equity VS FCFSDRL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 2B -2B 4B 6B

2.3 Liquidity

SDRL has a Current Ratio of 3.19. This indicates that SDRL is financially healthy and has no problem in meeting its short term obligations.
SDRL has a better Current ratio (3.19) than 81.03% of its industry peers.
SDRL has a Quick Ratio of 3.19. This indicates that SDRL is financially healthy and has no problem in meeting its short term obligations.
SDRL's Quick ratio of 3.19 is amongst the best of the industry. SDRL outperforms 91.38% of its industry peers.
Industry RankSector Rank
Current Ratio 3.19
Quick Ratio 3.19
SDRL Yearly Current Assets VS Current LiabilitesSDRL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2B 4B 6B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.79% over the past year.
EPS 1Y (TTM)11.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-55.45%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.49%

3.2 Future

The Earnings Per Share is expected to grow by 54.52% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.97% on average over the next years. This is quite good.
EPS Next Y13.53%
EPS Next 2Y54.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.49%
Revenue Next 2Y11.97%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

SDRL Yearly Revenue VS EstimatesSDRL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
SDRL Yearly EPS VS EstimatesSDRL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.41, SDRL is valued correctly.
SDRL's Price/Earnings ratio is a bit cheaper when compared to the industry. SDRL is cheaper than 72.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.51, SDRL is valued rather cheaply.
The Price/Forward Earnings ratio is 11.08, which indicates a very decent valuation of SDRL.
Based on the Price/Forward Earnings ratio, SDRL is valued a bit cheaper than 68.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 93.88. SDRL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.41
Fwd PE 11.08
SDRL Price Earnings VS Forward Price EarningsSDRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SDRL indicates a somewhat cheap valuation: SDRL is cheaper than 72.41% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SDRL indicates a somewhat cheap valuation: SDRL is cheaper than 67.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.52
EV/EBITDA 4.54
SDRL Per share dataSDRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
SDRL's earnings are expected to grow with 54.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y54.52%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

SDRL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SEADRILL LIMITED

NYSE:SDRL (1/30/2025, 8:04:01 PM)

After market: 36.48 0 (0%)

36.48

+0.24 (+0.66%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)N/A N/A
Inst Owners87.95%
Inst Owner Change-45%
Ins Owners0.01%
Ins Owner Change0%
Market Cap2.51B
Analysts87.14
Price Target57.27 (56.99%)
Short Float %7.45%
Short Ratio5.85
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.23%
Min EPS beat(2)6.99%
Max EPS beat(2)15.47%
EPS beat(4)4
Avg EPS beat(4)29.3%
Min EPS beat(4)6.99%
Max EPS beat(4)53.4%
EPS beat(8)6
Avg EPS beat(8)19.84%
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)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)4.69%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)4.69%
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)-3.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)868.42%
EPS NY rev (1m)0%
EPS NY rev (3m)37.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.73%
Valuation
Industry RankSector Rank
PE 12.41
Fwd PE 11.08
P/S 1.61
P/FCF 11.52
P/OCF 6.97
P/B 0.82
P/tB 0.82
EV/EBITDA 4.54
EPS(TTM)2.94
EY8.06%
EPS(NY)3.29
Fwd EY9.03%
FCF(TTM)3.17
FCFY8.68%
OCF(TTM)5.23
OCFY14.34%
SpS22.72
BVpS44.44
TBVpS44.44
PEG (NY)0.92
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 11.08%
ROE 15.56%
ROCE 8.66%
ROIC 6.84%
ROICexc 8.71%
ROICexgc 8.71%
OM 21.55%
PM (TTM) 30.43%
GM 37.02%
FCFM 13.94%
ROA(3y)43.82%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y139.92%
GM growth 5YN/A
F-Score5
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 2.79
Debt/EBITDA 1.22
Cap/Depr 87.12%
Cap/Sales 9.08%
Interest Coverage 250
Cash Conversion 72%
Profit Quality 45.8%
Current Ratio 3.19
Quick Ratio 3.19
Altman-Z 2.34
F-Score5
WACC8.88%
ROIC/WACC0.77
Cap/Depr(3y)60.63%
Cap/Depr(5y)N/A
Cap/Sales(3y)8.11%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-55.45%
EPS Next Y13.53%
EPS Next 2Y54.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.49%
Revenue Next Year7.49%
Revenue Next 2Y11.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y370.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.44%
EBIT Next 3Y28.83%
EBIT Next 5YN/A
FCF growth 1Y232.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3088.89%
OCF growth 3YN/A
OCF growth 5YN/A