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 new lifetime high 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 $71.6 million.
- SDRL has traded 1.3 million shares today.
- SDRL is trading at a new lifetime high.
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More details on SDRL:
Seadrill Limited 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 8.1%. SDRL has a PE ratio of 18.6. Currently there are 3 analysts that rate Seadrill a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Seadrill has been 2.3 million shares per day over the past 30 days. Seadrill has a market cap of $20.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.68 and a short float of 3.7% with 8.72 days to cover. Shares are up 19.5% year to date as of the close of trading on Monday.
rates Seadrill as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 20.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, SEADRILL LTD's return on equity 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 57.23%. Regardless of SDRL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SDRL's net profit margin of 32.33% significantly outperformed against the industry.
- SEADRILL LTD' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SEADRILL LTD reported lower earnings of $2.32 versus $2.92 in the prior year. This year, the market expects an improvement in earnings ($2.81 versus $2.32).
- In its most recent trading session, SDRL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- You can view the full Seadrill Ratings Report.