Rowan Companies PLC

Find Ratings Reports
RDC : NYSE : Basic Materials
$11.62 | %
Today's Range: 11.6 - 12.25
Avg. Daily Volume: 3912900.0
07/28/17 - 4:01 PM ET

Financial Analysis


ROWAN COMPANIES PLC's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. ROWAN COMPANIES PLC is extremely liquid. Currently, the Quick Ratio is 4.39 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 8.81% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)374.3500.18
EBITDA ($mil)180.3268.42
EBIT ($mil)81.2169.57
Net Income ($mil)10.3122.8


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1173.2595.2
Total Assets ($mil)8553.38392.13
Total Debt ($mil)2552.52676.32
Equity ($mil)5331.84900.03


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin54.5859.05
EBITDA Margin48.1653.66
Operating Margin21.6933.9
Sales Turnover0.180.25
Return on Assets2.431.1
Return on Equity3.91.88
Debt Q1 FY17 Q1 FY16
Current Ratio4.463.48
Debt/Capital0.320.35
Interest Expense39.638.92
Interest Coverage2.054.36


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)126.1125.25
Div / share0.00.0
EPS0.070.98
Book value / share42.2839.12
Institutional Own % n/a n/a
Avg Daily Volume3859419.03019454.0

Valuation


HOLD. ROWAN COMPANIES PLC's P/E ratio indicates a significant discount compared to an average of 92.71 for the Energy Equipment & Services industry and a significant discount compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 0.27 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 2.82. 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 6.94 Peers 92.71   RDC 1.74 Peers 22.74

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 48.78   RDC NM Peers 0.28

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 0.27 Peers 2.82   RDC 124.65 Peers -76.31

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 0.91 Peers 2.90   RDC -24.67 Peers -20.53

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

 

 

Latest Stock Upgrades/Downgrades