DB:8SW1

Stock Analysis Report

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Executive Summary

Archer Limited, an oilfield service company, provides various oilfield products and services to the oil and gas industry.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Archer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8SW1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

8SW1

-2.6%

DE Energy Services

0.7%

DE Market


1 Year Return

-62.7%

8SW1

-53.5%

DE Energy Services

3.9%

DE Market

Return vs Industry: 8SW1 underperformed the German Energy Services industry which returned -53.5% over the past year.

Return vs Market: 8SW1 underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

8SW1IndustryMarket
7 Day-0.6%-2.6%0.7%
30 Day-5.1%-8.2%5.3%
90 Day-2.3%-4.9%17.3%
1 Year-62.7%-62.7%-52.7%-53.5%6.2%3.9%
3 Year-85.1%-85.1%-55.9%-59.5%1.8%-6.2%
5 Year-92.9%-92.9%-72.6%-84.9%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Archer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Archer undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8SW1 (€0.17) is trading below our estimate of fair value (€0.9)

Significantly Below Fair Value: 8SW1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8SW1 is unprofitable, so we can't compare its PE Ratio to the XE Energy Services industry average.

PE vs Market: 8SW1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8SW1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8SW1 is good value based on its PB Ratio (0.3x) compared to the XE Energy Services industry average (0.5x).


Next Steps

Future Growth

How is Archer forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

91.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8SW1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: 8SW1 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 8SW1's is expected to become profitable in the next 3 years.

Revenue vs Market: 8SW1's revenue (6.5% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 8SW1's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8SW1's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Archer performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8SW1 is currently unprofitable.

Growing Profit Margin: 8SW1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8SW1 is unprofitable, but has reduced losses over the past 5 years at a rate of 15% per year.

Accelerating Growth: Unable to compare 8SW1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8SW1 is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (11.1%).


Return on Equity

High ROE: 8SW1 has a negative Return on Equity (-44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Archer's financial position?


Financial Position Analysis

Short Term Liabilities: 8SW1's short term assets ($266.1M) do not cover its short term liabilities ($722.3M).

Long Term Liabilities: 8SW1's short term assets ($266.1M) exceed its long term liabilities ($99.3M).


Debt to Equity History and Analysis

Debt Level: 8SW1's debt to equity ratio (561.2%) is considered high.

Reducing Debt: 8SW1's debt to equity ratio has increased from 147.6% to 561.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 8SW1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8SW1 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 52.1% per year.


Next Steps

Dividend

What is Archer current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8SW1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8SW1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8SW1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8SW1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8SW1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure


CEO

Dag Skindlo (52yo)

0.33

Tenure

Mr. Dag Skindlo has been Chief Executive Officer of Archer Limited since March 10, 2020 and served as its Executive Vice President of Strategy until March 2020. He has been Chief Financial Officer and Exec ...


Leadership Team

NamePositionTenureCompensationOwnership
Dag Skindlo
Chief Executive Officer0.33yrno data0.17% $51.5k
Espen Joranger
Chief Financial Officer0.33yrno datano data
Adam Todd
General Counsel2.83yrsno data0.037% $11.1k
Joachim Houeland
Corporate Treasurerno datano datano data
James Ayers
Secretaryno datano datano data

0.3yrs

Average Tenure

Experienced Management: 8SW1's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James O'Shaughnessy
Independent Director1.83yrsno datano data
Kristian Melhuus
Director1.17yrsno datano data
Peter Sharpe
Independent Director0.67yrno datano data
Giovanni Dell'Orto
Independent Director9.42yrsno datano data
Kjell-Erik Østdahl
Chairman of the Board1.83yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 8SW1's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Archer Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Archer Limited
  • Ticker: 8SW1
  • Exchange: DB
  • Founded: 2007
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: kr321.269m
  • Listing Market Cap: kr30.103m
  • Shares outstanding: 148.05m
  • Website: https://www.archerwell.com

Number of Employees


Location

  • Archer Limited
  • Par la Ville Place
  • 4th Floor
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCHEROB (Oslo Bors)YesOrdinary SharesNONOKOct 2007
8SW1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
0RBALSE (London Stock Exchange)YesOrdinary SharesGBNOKOct 2007
ARHV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
ARCHEOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKOct 2007

Biography

Archer Limited, an oilfield service company, provides various oilfield products and services to the oil and gas industry. It operates through two segments, Eastern Hemisphere and Western Hemisphere. The company provides oiltools, such as plugs and abandonment (P&A), slot recovery and P&A, cementing, and well cleaning solutions; land drilling and platform drilling services; and modular drilling rigs. It also offers engineering services, such as project management, construction and installations, multidiscipline engineering, consulting, and inspection services. In addition, the company provides cased hole logging, conveyance and mechanical/slickline, and R&D and technology development services. Further, it offers fluids, guarantor, international personnel, management, and equipment rental services, as well as performs rig inspections. The company operates in Angola, Argentina, Australia, Bolivia, Brazil, Canada, Congo, Indonesia, Malaysia, Nigeria, Norway, Saudi Arabia, the United Arab Emirates, the United Kingdom, and the United States. The company was formerly known as Seawell Limited and changed its name to Archer Limited in May 2011. Archer Limited was founded in 2007 and is based in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 05:39
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.