SHELF DRILLING LTD (SHLF.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:SHLF - KYG236271055 - Common Stock
18.44 NOK
-0.02 (-0.11%)
We assign a fundamental rating of 4 out of 10 to SHLF. SHLF was compared to 38 industry peers in the Energy Equipment & Services industry. While SHLF is still in line with the averages on profitability rating, there are concerns on its financial health. SHLF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year SHLF was profitable.
- SHLF had a positive operating cash flow in the past year.
- In the past 5 years SHLF reported 4 times negative net income.
- SHLF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- SHLF's Return On Assets of 5.82% is fine compared to the rest of the industry. SHLF outperforms 61.54% of its industry peers.
- With an excellent Return On Equity value of 25.66%, SHLF belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
- SHLF has a Return On Invested Capital of 10.97%. This is in the better half of the industry: SHLF outperforms 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SHLF is below the industry average of 10.43%.
- The last Return On Invested Capital (10.97%) for SHLF is above the 3 year average (7.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 25.66% | ||
| ROIC | 10.97% |
ROA(3y)0.71%
ROA(5y)-4.17%
ROE(3y)1.47%
ROE(5y)-25.5%
ROIC(3y)7.49%
ROIC(5y)5.95%
1.3 Margins
- Looking at the Profit Margin, with a value of 11.90%, SHLF is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
- With an excellent Operating Margin value of 25.08%, SHLF belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- SHLF's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 47.01%, SHLF is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- SHLF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.08% | ||
| PM (TTM) | 11.9% | ||
| GM | 47.01% |
OM growth 3Y29.1%
OM growth 5Y169.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.44%
GM growth 5Y3.81%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHLF is creating some value.
- Compared to 1 year ago, SHLF has more shares outstanding
- Compared to 5 years ago, SHLF has more shares outstanding
- Compared to 1 year ago, SHLF has a worse debt to assets ratio.
2.2 Solvency
- SHLF has an Altman-Z score of 0.68. This is a bad value and indicates that SHLF is not financially healthy and even has some risk of bankruptcy.
- SHLF has a Altman-Z score (0.68) which is in line with its industry peers.
- The Debt to FCF ratio of SHLF is 42.39, which is on the high side as it means it would take SHLF, 42.39 years of fcf income to pay off all of its debts.
- SHLF has a Debt to FCF ratio of 42.39. This is in the lower half of the industry: SHLF underperforms 69.23% of its industry peers.
- SHLF has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
- SHLF has a Debt to Equity ratio of 2.67. This is amonst the worse of the industry: SHLF underperforms 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 42.39 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.18
WACC9.33%
2.3 Liquidity
- A Current Ratio of 1.64 indicates that SHLF should not have too much problems paying its short term obligations.
- SHLF has a Current ratio (1.64) which is in line with its industry peers.
- SHLF has a Quick Ratio of 1.64. This is a normal value and indicates that SHLF is financially healthy and should not expect problems in meeting its short term obligations.
- SHLF has a better Quick ratio (1.64) than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- SHLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.00%, which is quite impressive.
- The Revenue has decreased by -1.57% in the past year.
- SHLF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.33% yearly.
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%157.14%
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y23.22%
Revenue growth 5Y11.33%
Sales Q2Q%45.81%
3.2 Future
- Based on estimates for the next years, SHLF will show a very strong growth in Earnings Per Share. The EPS will grow by 81.64% on average per year.
- SHLF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.33% yearly.
EPS Next Y346.25%
EPS Next 2Y105.12%
EPS Next 3Y81.64%
EPS Next 5YN/A
Revenue Next Year-1.86%
Revenue Next 2Y-0.41%
Revenue Next 3Y-0.33%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.13, the valuation of SHLF can be described as very reasonable.
- Based on the Price/Earnings ratio, SHLF is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SHLF to the average of the S&P500 Index (27.21), we can say SHLF is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.85, the valuation of SHLF can be described as reasonable.
- SHLF's Price/Forward Earnings is on the same level as the industry average.
- SHLF 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 | 10.13 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
- SHLF's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHLF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | 4.85 |
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.
- SHLF has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SHLF's earnings are expected to grow with 81.64% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y105.12%
EPS Next 3Y81.64%
5. Dividend
5.1 Amount
- No dividends for SHLF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHELF DRILLING LTD / SHLF.OL FAQ
Can you provide the ChartMill fundamental rating for SHELF DRILLING LTD?
ChartMill assigns a fundamental rating of 4 / 10 to SHLF.OL.
Can you provide the valuation status for SHELF DRILLING LTD?
ChartMill assigns a valuation rating of 7 / 10 to SHELF DRILLING LTD (SHLF.OL). This can be considered as Undervalued.
Can you provide the profitability details for SHELF DRILLING LTD?
SHELF DRILLING LTD (SHLF.OL) has a profitability rating of 6 / 10.
What is the financial health of SHELF DRILLING LTD (SHLF.OL) stock?
The financial health rating of SHELF DRILLING LTD (SHLF.OL) is 2 / 10.
What is the earnings growth outlook for SHELF DRILLING LTD?
The Earnings per Share (EPS) of SHELF DRILLING LTD (SHLF.OL) is expected to grow by 346.25% in the next year.