Seadrill (SDRL) Flagged As Today's Pre-Market Laggard
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Seadrill as such a stock due to the following factors:
- SDRL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $150.7 million.
- SDRL traded 88,158 shares today in the pre-market hours as of 7:42 AM.
- SDRL is down 2.4% today from yesterday's close.
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More details on SDRL:
Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. The stock currently has a dividend yield of 28.7%. SDRL has a PE ratio of 2.1. Currently there are 2 analysts that rate Seadrill a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Seadrill has been 16.5 million shares per day over the past 30 days. Seadrill has a market cap of $5.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.31 and a short float of 11.8% with 3.07 days to cover. Shares are down 4% year-to-date as of the close of trading on Thursday.
Analysis:
rates Seadrill as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, SEADRILL LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
- SDRL, with its decline in revenue, underperformed when compared the industry average of 14.4%. Since the same quarter one year prior, revenues fell by 14.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.35 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, SDRL has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $287.00 million or 41.66% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Seadrill Ratings Report.
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