Rowan Companies PLC

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RDC : NYSE : Basic Materials
$14.52 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2895200.0
03/27/17 - 4:01 PM ET

Financial Analysis


ROWAN COMPANIES PLC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. ROWAN COMPANIES PLC is extremely liquid. Currently, the Quick Ratio is 3.22 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.15% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)351.8535.81
EBITDA ($mil)146.3272.68
EBIT ($mil)44.6170.45
Net Income ($mil)-24.4124.35


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1255.5484.23
Total Assets ($mil)8675.68347.27
Total Debt ($mil)2680.22692.42
Equity ($mil)5113.94772.46


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin48.8656.0
EBITDA Margin41.5850.89
Operating Margin12.6831.81
Sales Turnover0.20.26
Return on Assets3.691.11
Return on Equity6.261.95
Debt Q4 FY16 Q4 FY15
Current Ratio3.272.8
Debt/Capital0.340.36
Interest Expense38.940.39
Interest Coverage1.154.22


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)125.5124.82
Div / share0.00.1
EPS-0.190.99
Book value / share40.7538.24
Institutional Own % n/a n/a
Avg Daily Volume2859629.03686576.0

Valuation


HOLD. ROWAN COMPANIES PLC's P/E ratio indicates a significant discount compared to an average of 561.61 for the Energy Equipment & Services industry and a significant discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 0.36 indicates a significant discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 3.43. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ROWAN COMPANIES PLC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RDC 5.69 Peers 561.61   RDC 2.02 Peers 157.94

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RDC is trading at a significant discount to its peers.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RDC NM Peers 65.72   RDC NM Peers 0.93

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

RDC's ratio is negative making this valuation measure meaningless.

 

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.

RDC's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RDC 0.36 Peers 3.43   RDC 244.59 Peers -52.72

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.

 

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

RDC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RDC 1.07 Peers 3.18   RDC -20.43 Peers -30.72

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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