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SEADRILL LIMITED (SDRL) Stock Fundamental Analysis

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

23.6  -1.87 (-7.34%)

Fundamental Rating

4

SDRL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 59 industry peers in the Energy Equipment & Services industry. SDRL has only an average score on both its financial health and profitability. SDRL is valued correctly, but it does not seem to be growing.


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 10.07%, SDRL belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
With a decent Return On Equity value of 14.35%, SDRL is doing good in the industry, outperforming 68.97% of the companies in the same industry.
SDRL has a Return On Invested Capital of 5.78%. This is comparable to the rest of the industry: SDRL outperforms 46.55% of its industry peers.
Industry RankSector Rank
ROA 10.07%
ROE 14.35%
ROIC 5.78%
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

The Profit Margin of SDRL (27.79%) is better than 96.55% of its industry peers.
With an excellent Operating Margin value of 18.22%, SDRL belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
Looking at the Gross Margin, with a value of 34.97%, SDRL is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
SDRL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 18.22%
PM (TTM) 27.79%
GM 34.97%
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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5

2. Health

2.1 Basic Checks

SDRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

SDRL has an Altman-Z score of 1.90. This is not the best score and indicates that SDRL is in the grey zone with still only limited risk for bankruptcy at the moment.
SDRL has a Altman-Z score (1.90) which is comparable to the rest of the industry.
The Debt to FCF ratio of SDRL is 11.30, which is on the high side as it means it would take SDRL, 11.30 years of fcf income to pay off all of its debts.
SDRL has a Debt to FCF ratio of 11.30. This is comparable to the rest of the industry: SDRL outperforms 44.83% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SDRL is not too dependend on debt financing.
SDRL has a better Debt to Equity ratio (0.21) than 65.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 11.3
Altman-Z 1.9
ROIC/WACC0.65
WACC8.91%
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 2.53. This indicates that SDRL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.53, SDRL is doing good in the industry, outperforming 74.14% of the companies in the same industry.
SDRL has a Quick Ratio of 2.53. This indicates that SDRL is financially healthy and has no problem in meeting its short term obligations.
SDRL's Quick ratio of 2.53 is amongst the best of the industry. SDRL outperforms 86.21% of its industry peers.
Industry RankSector Rank
Current Ratio 2.53
Quick Ratio 2.53
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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2

3. Growth

3.1 Past

SDRL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.26%.
EPS 1Y (TTM)-24.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%12.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-28.11%

3.2 Future

Based on estimates for the next years, SDRL will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.56% on average per year.
The Revenue is expected to grow by 9.29% on average over the next years. This is quite good.
EPS Next Y-14.08%
EPS Next 2Y38.49%
EPS Next 3Y15.56%
EPS Next 5YN/A
Revenue Next Year2.39%
Revenue Next 2Y9.67%
Revenue Next 3Y9.29%
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 2027 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 2027 0 20 40

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.71 indicates a rather cheap valuation of SDRL.
Based on the Price/Earnings ratio, SDRL is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.98, SDRL is valued rather cheaply.
A Price/Forward Earnings ratio of 8.98 indicates a reasonable valuation of SDRL.
SDRL's Price/Forward Earnings ratio is rather cheap when compared to the industry. SDRL is cheaper than 81.03% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, SDRL is valued rather cheaply.
Industry RankSector Rank
PE 7.71
Fwd PE 8.98
SDRL Price Earnings VS Forward Price EarningsSDRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

SDRL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SDRL is cheaper than 81.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SDRL is valued a bit more expensive than the industry average as 60.34% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 30.08
EV/EBITDA 4.08
SDRL Per share dataSDRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

SDRL's earnings are expected to grow with 15.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.49%
EPS Next 3Y15.56%

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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 (3/3/2025, 3:08:53 PM)

23.6

-1.87 (-7.34%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)N/A N/A
Inst Owners88.57%
Inst Owner Change-45%
Ins Owners0.08%
Ins Owner Change0.7%
Market Cap1.62B
Analysts87.14
Price Target53.3 (125.85%)
Short Float %7.26%
Short Ratio6.35
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)279.85%
Min EPS beat(2)6.99%
Max EPS beat(2)552.71%
EPS beat(4)4
Avg EPS beat(4)154.13%
Min EPS beat(4)6.99%
Max EPS beat(4)552.71%
EPS beat(8)7
Avg EPS beat(8)114.79%
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)2
Avg Revenue beat(2)5.57%
Min Revenue beat(2)4.69%
Max Revenue beat(2)6.45%
Revenue beat(4)3
Avg Revenue beat(4)2.76%
Min Revenue beat(4)-2.96%
Max Revenue beat(4)6.45%
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)-5.73%
PT rev (3m)-6.46%
EPS NQ rev (1m)-7.8%
EPS NQ rev (3m)40.43%
EPS NY rev (1m)27.39%
EPS NY rev (3m)35.54%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE 7.71
Fwd PE 8.98
P/S 1.08
P/FCF 30.08
P/OCF 7.35
P/B 0.56
P/tB 0.56
EV/EBITDA 4.08
EPS(TTM)3.06
EY12.97%
EPS(NY)2.63
Fwd EY11.14%
FCF(TTM)0.78
FCFY3.32%
OCF(TTM)3.21
OCFY13.61%
SpS21.85
BVpS42.32
TBVpS42.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.07%
ROE 14.35%
ROCE 7.32%
ROIC 5.78%
ROICexc 6.82%
ROICexgc 6.82%
OM 18.22%
PM (TTM) 27.79%
GM 34.97%
FCFM 3.59%
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 0.21
Debt/FCF 11.3
Debt/EBITDA 1.39
Cap/Depr 100.6%
Cap/Sales 11.1%
Interest Coverage 250
Cash Conversion 50.23%
Profit Quality 12.92%
Current Ratio 2.53
Quick Ratio 2.53
Altman-Z 1.9
F-Score5
WACC8.91%
ROIC/WACC0.65
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)-24.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%12.63%
EPS Next Y-14.08%
EPS Next 2Y38.49%
EPS Next 3Y15.56%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-28.11%
Revenue Next Year2.39%
Revenue Next 2Y9.67%
Revenue Next 3Y9.29%
Revenue Next 5YN/A
EBIT growth 1Y370.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.66%
EBIT Next 3Y27.19%
EBIT Next 5Y16.67%
FCF growth 1Y232.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3088.89%
OCF growth 3YN/A
OCF growth 5YN/A