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Rowan Companies PLC
RDC : NYSE : Basic Materials
$20.51 up0.09 | 0.44%
Today's Range: 19.82 - 20.98
Avg. Daily Volume: 3,057,100
11/25/15 - 4:01 PM ET

Financial Analysis

ROWAN COMPANIES PLC's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ROWAN COMPANIES PLC is extremely liquid. Currently, the Quick Ratio is 2.51 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 9.10% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)545.44467.69
EBITDA ($mil)268.12187.75
EBIT ($mil)164.01106.24
Net Income ($mil)-239.45119.6

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)290.48707.73
Total Assets ($mil)8341.688828.78
Total Debt ($mil)2806.692807.54
Equity ($mil)4644.945109.99

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin54.647.21
EBITDA Margin49.1540.14
Operating Margin30.0722.72
Sales Turnover0.260.19
Return on Assets-4.292.96
Return on Equity-7.75.04
Debt Q3 FY15 Q3 FY14
Current Ratio2.624.96
Interest Expense41.3441.16
Interest Coverage3.972.58

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)124.81124.53
Div / share0.10.1
Book value / share37.2241.04
Institutional Own % n/a n/a
Avg Daily Volume3124162.02703500.0


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.54 indicates a significant discount versus the S&P 500 average of 2.77 and a discount versus the industry average of 1.88. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, ROWAN COMPANIES PLC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RDC NM Peers 45.01   RDC 2.83 Peers 8.59

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

RDC's P/E is negative making this valuation measure meaningless.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RDC is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RDC 8.47 Peers 22.38   RDC NA Peers 1.68

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RDC is trading at a significant discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RDC 0.54 Peers 1.88   RDC -239.13 Peers -126.42

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RDC is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RDC is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RDC 1.16 Peers 1.65   RDC 29.84 Peers -12.40

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RDC is trading at a significant discount to its industry on this measurement.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RDC has a sales growth rate that significantly exceeds its peers.



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