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 $173.9 million.
- SDRL traded 70,670 shares today in the pre-market hours as of 7:35 AM.
- SDRL is down 3% 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 17.5%. SDRL has a PE ratio of 4.2. 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 7.4 million shares per day over the past 30 days. Seadrill has a market cap of $10.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.61 and a short float of 8.1% with 3.64 days to cover. Shares are down 43.3% year-to-date as of the close of trading on Tuesday.
rates Seadrill as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.
Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
- The gross profit margin for SEADRILL LTD is rather high; currently it is at 58.59%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 49.50% significantly outperformed against the industry average.
- SDRL, with its decline in revenue, underperformed when compared the industry average of 9.9%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 65.0% when compared to the same quarter one year ago, falling from $1,727.00 million to $605.00 million.
- The debt-to-equity ratio of 1.30 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, SDRL maintains a poor quick ratio of 0.70, which illustrates the inability to avoid short-term cash problems.
- You can view the full Seadrill Ratings Report.