Seadrill Limited
Find Ratings ReportsSEADRILL LTD's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SEADRILL LTD is extremely liquid. Currently, the Quick Ratio is 2.44 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 greatly increased by 75.26% 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 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 408.0 | 228.0 |
EBITDA ($mil) | 98.0 | 38.0 |
EBIT ($mil) | 55.0 | -7.0 |
Net Income ($mil) | 73.0 | 249.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 728.0 | 524.0 |
Total Assets ($mil) | 4218.0 | 2801.0 |
Total Debt ($mil) | 608.0 | 527.0 |
Equity ($mil) | 2983.0 | 1702.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 30.39 | 21.93 |
EBITDA Margin | 24.01 | 16.66 |
Operating Margin | 13.48 | -3.07 |
Sales Turnover | 0.36 | 0.36 |
Return on Assets | 7.11 | 139.48 |
Return on Equity | 10.06 | 215.39 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.98 | 2.12 |
Debt/Capital | 0.17 | 0.24 |
Interest Expense | 0.0 | 24.0 |
Interest Coverage | 0.0 | -0.29 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 74.05 | 50.0 |
Div / share | 0.0 | 0.0 |
EPS | 0.95 | -0.46 |
Book value / share | 40.28 | 34.04 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 750959.0 | 762133.0 |
HOLD. SEADRILL LTD's P/E ratio indicates a significant discount compared to an average of 27.70 for the Support Activities for Mining subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.21 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 3.28. The price-to-sales ratio is below the S&P 500 average, but well above the subsector average. Upon assessment of these and other key valuation criteria, SEADRILL LTD proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SDRL 12.05 | Peers 27.70 | SDRL 12.56 | Peers 11.61 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. SDRL is trading at a significant discount to its peers. |
Average. 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. SDRL is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SDRL 7.31 | Peers 11.65 | SDRL NM | Peers 0.97 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. SDRL is trading at a significant premium to its peers. |
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. SDRL's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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SDRL 1.21 | Peers 3.28 | SDRL -94.16 | Peers 216.78 | |||||||||||||||||||||
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. SDRL 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, SDRL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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SDRL 2.40 | Peers 1.79 | SDRL 48.41 | Peers 21.15 | |||||||||||||||||||||
Premium. 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. SDRL is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. SDRL has a sales growth rate that significantly exceeds its peers. |
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