Rowan Companies PLC

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RDC : NYSE : Basic Materials
$11.41 | %
Today's Range: 11.22 - 11.705
Avg. Daily Volume: 3578400.0
09/22/17 - 4:01 PM ET

Financial Analysis


ROWAN COMPANIES PLC's gross profit margin for the second quarter of its fiscal year 2017 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 4.90 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.57% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)320.2469.16
EBITDA ($mil)130.7235.57
EBIT ($mil)29.2135.42
Net Income ($mil)-28.7216.73


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1145.2761.42
Total Assets ($mil)8456.18619.66
Total Debt ($mil)2516.62645.37
Equity ($mil)5310.15126.79


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin47.6955.78
EBITDA Margin40.8150.2
Operating Margin9.1228.87
Sales Turnover0.170.24
Return on Assets-0.442.6
Return on Equity-0.74.37
Debt Q2 FY17 Q2 FY16
Current Ratio5.04.36
Debt/Capital0.320.34
Interest Expense38.938.25
Interest Coverage0.753.54


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)126.2125.42
Div / share0.00.0
EPS-0.231.72
Book value / share42.0840.88
Institutional Own % n/a n/a
Avg Daily Volume3914077.03211308.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.26 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 2.67. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 NM Peers 380.77   RDC 2.14 Peers 28.19

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

RDC's P/E is negative making this valuation measure meaningless.

 

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 47.06   RDC NA Peers 0.50

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RDC 0.26 Peers 2.67   RDC -117.51 Peers 31.16

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.

 

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

However, RDC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RDC 0.98 Peers 2.66   RDC -30.48 Peers -7.79

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RDC significantly trails its peers on the basis of sales growth

 

 

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