Rowan Companies PLC

Find Ratings Reports
RDC : NYSE : Basic Materials
$13.60 up 0.24 | 1.80%
Today's Range: 13.17 - 13.85
Avg. Daily Volume: 3,511,900
09/26/16 - 2:03 PM ET

Financial Analysis


ROWAN COMPANIES PLC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ROWAN COMPANIES PLC is extremely liquid. Currently, the Quick Ratio is 4.26 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.88% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)469.16508.74
EBITDA ($mil)235.57223.63
EBIT ($mil)135.42128.24
Net Income ($mil)216.7384.74


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)761.42198.55
Total Assets ($mil)8619.668656.77
Total Debt ($mil)2645.372856.9
Equity ($mil)5126.794888.12


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin55.7850.08
EBITDA Margin50.243.95
Operating Margin28.8725.21
Sales Turnover0.240.24
Return on Assets2.60.01
Return on Equity4.370.02
Debt Q2 FY16 Q2 FY15
Current Ratio4.361.99
Debt/Capital0.340.37
Interest Expense38.2539.54
Interest Coverage3.543.24


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)125.42124.79
Div / share0.00.1
EPS1.720.68
Book value / share40.8839.17
Institutional Own % n/a n/a
Avg Daily Volume3520024.03595633.0

Valuation


HOLD. ROWAN COMPANIES PLC's P/E ratio indicates a significant discount compared to an average of 27.49 for the Energy Equipment & Services industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 0.34 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 2.65. 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 7.94 Peers 27.49   RDC 1.88 Peers 11.99

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 120.26   RDC 0.07 Peers 0.24

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RDC is trading at a significant discount to its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RDC 0.34 Peers 2.65   RDC NA Peers -338.13

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.

 

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

The growth rate for RDC is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RDC 0.86 Peers 2.61   RDC -1.40 Peers -35.95

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.

 

 

Latest Stock Upgrades/Downgrades