Rowan Companies PLC

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RDC : NYSE : Basic Materials
$16.08 up 0.24 | 1.52%
Today's Range: 15.52 - 16.16
Avg. Daily Volume: 3,136,400
07/26/16 - 4:01 PM ET

Financial Analysis


ROWAN COMPANIES PLC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. ROWAN COMPANIES PLC is extremely liquid. Currently, the Quick Ratio is 3.42 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 1.94% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)500.18547.04
EBITDA ($mil)268.42263.72
EBIT ($mil)169.57174.03
Net Income ($mil)122.8123.67


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)595.256.79
Total Assets ($mil)8392.138511.96
Total Debt ($mil)2676.322807.11
Equity ($mil)4900.034806.35


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin59.0553.25
EBITDA Margin53.6648.2
Operating Margin33.931.81
Sales Turnover0.250.23
Return on Assets1.1-0.59
Return on Equity1.88-1.05
Debt Q1 FY16 Q1 FY15
Current Ratio3.481.92
Debt/Capital0.350.37
Interest Expense38.9240.25
Interest Coverage4.364.32


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)125.25124.76
Div / share0.00.1
EPS0.980.99
Book value / share39.1238.52
Institutional Own % n/a n/a
Avg Daily Volume3151800.04639533.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 36.58 for the Energy Equipment & Services industry and a discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 0.43 indicates a significant discount versus the S&P 500 average of 2.81 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 23.05 Peers 36.58   RDC 2.30 Peers 11.48

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 90.97 Peers 78.27   RDC 0.17 Peers 0.17

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RDC 0.43 Peers 2.65   RDC 273.80 Peers -202.07

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 1.01 Peers 2.57   RDC 4.83 Peers -33.46

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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