NEW YORK (TheStreet) -- Noble Corp. (NE) - Get Report shares are gaining 0.5% to $11.01 on Wednesday along with rising oil prices as the Energy Information Administration (EIA) released positive data.
Crude oil (WTI) is increasing 0.35% to $45.39 per barrel and brent crude is up 0.64% to $48.54 per barrel, according to the CNBC.com index.
Crude stocks at the Cushing, OK location dropped by 1.068 million barrels last week, EIA stated.
U.S. oil inventories however, increased by 4 million barrels to 457.92 million barrels last week, causing oil futures to drop earlier today.
Overall, investors are concerned about the global oversupply of oil.
Based in London, Noble Corp. operates as an offshore drilling contractor for the oil and gas industry worldwide.
Separately, TheStreet Ratings team rates NOBLE CORP PLC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate NOBLE CORP PLC (NE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for NOBLE CORP PLC is rather high; currently it is at 57.55%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.04% significantly outperformed against the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, NOBLE CORP PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $399.30 million or 24.09% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, NOBLE CORP PLC has marginally lower results.
- You can view the full analysis from the report here: NE