SHELF DRILLING LTD (SHLF.OL) Stock Fundamental Analysis
OSL:SHLF - Euronext Oslo - KYG236271055 - Common Stock - Currency: NOK
We assign a fundamental rating of 3 out of 10 to SHLF. SHLF was compared to 35 industry peers in the Energy Equipment & Services industry. SHLF has a bad profitability rating. Also its financial health evaluation is rather negative. SHLF is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHLF has reported negative net income.
In the past year SHLF had a positive cash flow from operations.
SHLF had negative earnings in each of the past 5 years.
In multiple years SHLF reported negative operating cash flow during the last 5 years.
1.2 Ratios
SHLF has a Return On Assets of 1.88%. This is in the lower half of the industry: SHLF underperforms 74.29% of its industry peers.
Looking at the Return On Equity, with a value of 10.31%, SHLF is in line with its industry, outperforming 48.57% of the companies in the same industry.
SHLF has a Return On Invested Capital (8.37%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SHLF is significantly below the industry average of 14.59%.
The last Return On Invested Capital (8.37%) for SHLF is above the 3 year average (5.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.31% | ||
| ROIC | 8.37% |
ROA(3y)-2.21%
ROA(5y)-6.71%
ROE(3y)-17.11%
ROE(5y)-34.61%
ROIC(3y)5.33%
ROIC(5y)4.12%
1.3 Margins
With a Profit Margin value of 4.06%, SHLF is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
SHLF's Operating Margin of 19.49% is fine compared to the rest of the industry. SHLF outperforms 74.29% of its industry peers.
SHLF's Operating Margin has improved in the last couple of years.
SHLF's Gross Margin of 44.04% is fine compared to the rest of the industry. SHLF outperforms 77.14% of its industry peers.
SHLF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.49% | ||
| PM (TTM) | 4.06% | ||
| GM | 44.04% |
OM growth 3Y14.02%
OM growth 5Y38.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.47%
GM growth 5Y0.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLF is destroying value.
The number of shares outstanding for SHLF has been increased compared to 1 year ago.
SHLF has more shares outstanding than it did 5 years ago.
SHLF has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.41, we must say that SHLF is in the distress zone and has some risk of bankruptcy.
SHLF has a Altman-Z score of 0.41. This is in the better half of the industry: SHLF outperforms 68.57% of its industry peers.
SHLF has a debt to FCF ratio of 29.55. This is a negative value and a sign of low solvency as SHLF would need 29.55 years to pay back of all of its debts.
With a Debt to FCF ratio value of 29.55, SHLF is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
SHLF has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
SHLF has a Debt to Equity ratio of 3.26. This is amonst the worse of the industry: SHLF underperforms 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 29.55 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.96
WACC8.75%
2.3 Liquidity
SHLF has a Current Ratio of 1.45. 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 Current ratio (1.45) which is in line with its industry peers.
SHLF has a Quick Ratio of 1.45. This is a normal value and indicates that SHLF is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SHLF (1.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
SHLF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -155.56%.
The Revenue has grown by 12.43% in the past year. This is quite good.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)-155.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)12.43%
Revenue growth 3Y15.77%
Revenue growth 5Y8.16%
Sales Q2Q%-2.5%
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 57.03% on average per year.
Based on estimates for the next years, SHLF will show a quite strong growth in Revenue. The Revenue will grow by 8.62% on average per year.
EPS Next Y378.81%
EPS Next 2Y179.09%
EPS Next 3Y117.28%
EPS Next 5Y57.03%
Revenue Next Year9.21%
Revenue Next 2Y6.15%
Revenue Next 3Y5.67%
Revenue Next 5Y8.62%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SHLF. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 2.35, the valuation of SHLF can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHLF indicates a rather cheap valuation: SHLF is cheaper than 100.00% of the companies listed in the same industry.
SHLF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLF indicates a somewhat cheap valuation: SHLF is cheaper than 74.29% of the companies listed in the same industry.
SHLF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SHLF is cheaper than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.7 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
SHLF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SHLF's earnings are expected to grow with 117.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y179.09%
EPS Next 3Y117.28%
5. Dividend
5.1 Amount
No dividends for SHLF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OSL:SHLF (3/7/2025, 7:00:00 PM)
7.355
+0.21 (+2.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners31.34%
Inst Owner ChangeN/A
Ins Owners1.39%
Ins Owner ChangeN/A
Market Cap1.89B
Analysts86
Price Target25.84 (251.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)359.48%
Min EPS beat(2)-557.52%
Max EPS beat(2)1276.47%
EPS beat(4)1
Avg EPS beat(4)-11.19%
Min EPS beat(4)-688.23%
Max EPS beat(4)1276.47%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)19.5%
Min Revenue beat(2)5.72%
Max Revenue beat(2)33.28%
Revenue beat(4)4
Avg Revenue beat(4)13.08%
Min Revenue beat(4)4.48%
Max Revenue beat(4)33.28%
Revenue beat(8)8
Avg Revenue beat(8)16.1%
Revenue beat(12)9
Avg Revenue beat(12)10.2%
Revenue beat(16)10
Avg Revenue beat(16)6.76%
PT rev (1m)2.7%
PT rev (3m)-14.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-111.76%
EPS NY rev (1m)2.51%
EPS NY rev (3m)-4.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)3.6%
Revenue NY rev (3m)5.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.35 | ||
| P/S | 0.17 | ||
| P/FCF | 3.7 | ||
| P/OCF | 1.55 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)-0.22
EYN/A
EPS(NY)3.14
Fwd EY42.63%
FCF(TTM)1.99
FCFY27.05%
OCF(TTM)4.75
OCFY64.61%
SpS42.18
BVpS16.6
TBVpS16.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.31% | ||
| ROCE | 10.86% | ||
| ROIC | 8.37% | ||
| ROICexc | 9.54% | ||
| ROICexgc | 9.54% | ||
| OM | 19.49% | ||
| PM (TTM) | 4.06% | ||
| GM | 44.04% | ||
| FCFM | 4.72% |
ROA(3y)-2.21%
ROA(5y)-6.71%
ROE(3y)-17.11%
ROE(5y)-34.61%
ROIC(3y)5.33%
ROIC(5y)4.12%
ROICexc(3y)5.8%
ROICexc(5y)4.45%
ROICexgc(3y)5.8%
ROICexgc(5y)4.45%
ROCE(3y)6.92%
ROCE(5y)5.35%
ROICexcg growth 3Y20.88%
ROICexcg growth 5Y44.85%
ROICexc growth 3Y20.88%
ROICexc growth 5Y44.85%
OM growth 3Y14.02%
OM growth 5Y38.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.47%
GM growth 5Y0.89%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 29.55 | ||
| Debt/EBITDA | 4.57 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 6.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.08% | ||
| Profit Quality | 116.3% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.41 |
F-Score7
WACC8.75%
ROIC/WACC0.96
Cap/Depr(3y)312.25%
Cap/Depr(5y)241.5%
Cap/Sales(3y)28.86%
Cap/Sales(5y)24.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-155.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y378.81%
EPS Next 2Y179.09%
EPS Next 3Y117.28%
EPS Next 5Y57.03%
Revenue 1Y (TTM)12.43%
Revenue growth 3Y15.77%
Revenue growth 5Y8.16%
Sales Q2Q%-2.5%
Revenue Next Year9.21%
Revenue Next 2Y6.15%
Revenue Next 3Y5.67%
Revenue Next 5Y8.62%
EBIT growth 1Y8.99%
EBIT growth 3Y32.01%
EBIT growth 5Y49.98%
EBIT Next Year80.39%
EBIT Next 3Y38.53%
EBIT Next 5Y21.17%
FCF growth 1Y134.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y668.96%
OCF growth 3Y16.67%
OCF growth 5Y17.96%