SEADRILL LIMITED (SDRL)
BMG7997W1029 - Common Stock
We assign a fundamental rating of 5 out of 10 to SDRL. SDRL was compared to 59 industry peers in the Energy Equipment & Services industry. SDRL has an excellent financial health rating, but there are some minor concerns on its profitability. SDRL has a bad growth rate and is valued cheaply. With these ratings, SDRL could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SDRL had positive earnings in the past year.
SDRL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SDRL reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: SDRL reported negative operating cash flow in multiple years.
1.2 Ratios
SDRL has a Return On Assets of 11.08%. This is amongst the best in the industry. SDRL outperforms 86.44% of its industry peers.
Looking at the Return On Equity, with a value of 15.56%, SDRL is in the better half of the industry, outperforming 71.19% of the companies in the same industry.
SDRL has a Return On Invested Capital (6.84%) which is in line with its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of SDRL (30.43%) is better than 96.61% of its industry peers.
The Operating Margin of SDRL (21.55%) is better than 86.44% of its industry peers.
The Gross Margin of SDRL (37.02%) is better than 72.88% of its industry peers.
In the last couple of years the Gross Margin of SDRL has grown nicely.
| Industry Rank | Sector 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
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.
2.2 Solvency
SDRL has an Altman-Z score of 2.35. 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.
With a decent Altman-Z score value of 2.35, SDRL is doing good in the industry, outperforming 64.41% of the companies in the same industry.
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.
The Debt to FCF ratio of SDRL (2.79) is better than 61.02% 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 64.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.82
WACC8.39%
2.3 Liquidity
A Current Ratio of 3.19 indicates that SDRL has no problem at all paying its short term obligations.
SDRL has a better Current ratio (3.19) than 81.36% 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.
The Quick ratio of SDRL (3.19) is better than 91.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 3.19 |
3. Growth
3.1 Past
SDRL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.79%, which is quite good.
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
SDRL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.45% yearly.
EPS Next Y13.53%
EPS Next 2Y54.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.3%
Revenue Next 2Y11.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
SDRL is valuated correctly with a Price/Earnings ratio of 12.13.
Based on the Price/Earnings ratio, SDRL is valued a bit cheaper than 71.19% of the companies in the same industry.
SDRL is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
SDRL is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
Based on the Price/Forward Earnings ratio, SDRL is valued a bit cheaper than 64.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SDRL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
SDRL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SDRL is cheaper than 71.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SDRL is valued a bit cheaper than 64.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.26 | ||
| EV/EBITDA | 4.55 |
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.
A more expensive valuation may be justified as SDRL's earnings are expected to grow with 54.52% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y54.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SDRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SEADRILL LIMITED
NYSE:SDRL (12/23/2024, 7:00:00 PM)
After market: 35.67 0 (0%)35.67
-0.65 (-1.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.95%
Inst Owner Change100%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap2.46B
Analysts87.14
Price Target57.27 (60.56%)
Short Float %6.13%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0.51%
PT rev (3m)-7.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.82%
EPS NY rev (1m)42.41%
EPS NY rev (3m)37.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 10.83 | ||
| P/S | 1.57 | ||
| P/FCF | 11.26 | ||
| P/OCF | 6.82 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 4.55 |
EPS(TTM)2.94
EY8.24%
EPS(NY)3.29
Fwd EY9.23%
FCF(TTM)3.17
FCFY8.88%
OCF(TTM)5.23
OCFY14.66%
SpS22.72
BVpS44.44
TBVpS44.44
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.35 |
F-Score5
WACC8.39%
ROIC/WACC0.82
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 Year6.3%
Revenue Next 2Y11.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y370.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year15.89%
EBIT Next 3Y29.16%
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