OB:NODL

Stock Analysis Report

Northern Drilling

Executive Summary

Northern Drilling Ltd., a drilling contractor, focuses on acquiring and operating offshore drilling rigs for oil and gas industry.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

NODL

3.4%

NO Energy Services

1.7%

NO Market


1 Year Return

-66.7%

NODL

-34.1%

NO Energy Services

-8.2%

NO Market

Return vs Industry: NODL underperformed the Norwegian Energy Services industry which returned -34.1% over the past year.

Return vs Market: NODL underperformed the Norwegian Market which returned -8.2% over the past year.


Share holder returns

NODLIndustryMarket
7 Day1.9%3.4%1.7%
30 Day-20.9%-5.6%-0.09%
90 Day-34.1%-7.9%-0.7%
1 Year-66.7%-66.7%-32.9%-34.1%-3.2%-8.2%
3 Yearn/a2.5%-4.6%40.8%22.5%
5 Yearn/a-31.1%-51.6%63.9%26.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Northern Drilling undervalued based on future cash flows and its price relative to the stock market?

0.4x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: NODL (NOK24.1) is trading above our estimate of fair value (NOK0.39)

Significantly Undervalued: NODL is trading above our estimate of fair value.


Price Based on Earnings

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

PE vs Market: NODL is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: NODL is good value based on its PB Ratio (0.4x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Northern Drilling expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

52.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: NODL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NODL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NODL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if NODL's revenue is forecast to grow faster than the Norwegian market.

High Growth Revenue: Insufficient data to determine if NODL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: NODL's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Northern Drilling performed over the past 5 years?

-41.5%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if NODL's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: NODL is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (5%).


Return on Equity

High ROE: NODL has a negative Return on Equity (-0.18%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NODL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NODL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Northern Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: NODL's short term assets ($47.7M) do not cover its short term liabilities ($58.0M)

Long Term Liabilities: NODL's short term assets (47.7M) do not cover its long term liabilities (365.2M)


Debt to Equity History and Analysis

Debt Level: NODL's debt to equity ratio (55.5%) is considered high

Reducing Debt: Insufficient data to determine if NODL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: NODL has a high level of physical assets or inventory.

Debt Coverage by Assets: NODL's debt is not covered by short term assets (assets are 0.1x debt).


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: NODL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NODL has sufficient cash runway for 1.083150 years if free cash flow continues to reduce at historical rates of -41.5% each year.


Next Steps

Dividend

What is Northern Drilling's current dividend yield, its reliability and sustainability?

0.14%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.6%markettop25%6.3%industryaverage6.4%forecastin3Years0.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Growing Dividend: Insufficient data to determine if NODL'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 NODL's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

What is the CEO of Northern Drilling's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average board tenure


CEO

Scott McReaken (41yo)

0.8yrs

Tenure

0

Mr. Scott McReaken has been the Chief Executive Officer at Sevan Drilling Limited since November 15, 2013. Mr. McReaken has been the Chief Financial Officer of North Atlantic Management AS at North Atlanti ...


Board Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: NODL's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$19,463,78003 Jun 19
Greenwich Holdings Ltd.
EntityCompany
Shares452,646
Max PriceUS$43.00
BuyUS$2,865,03003 Jan 19
Greenwich Holdings Ltd.
EntityCompany
Shares53,195
Max PriceUS$53.86
BuyUS$8,581,58421 Dec 18
Greenwich Holdings Ltd.
EntityCompany
Shares165,000
Max PriceUS$52.01
BuyUS$19,535,76420 Dec 18
Greenwich Holdings Ltd.
EntityCompany
Shares390,000
Max PriceUS$50.09
BuyUS$4,479,99517 Dec 18
Greenwich Holdings Ltd.
EntityCompany
Shares88,678
Max PriceUS$50.52
BuyUS$12,436,87214 Dec 18
Greenwich Holdings Ltd.
EntityCompany
Shares240,000
Max PriceUS$51.82

Ownership Breakdown


Management Team

  • Scott McReaken (41yo)

    Chief Executive Officer

    • Tenure: 0.8yrs

Board Members

  • Gary Casswell (66yo)

    Chairman of the Board

    • Tenure: 2.1yrs
  • Jon Østhus (66yo)

    Director

    • Tenure: 1.4yrs
  • Gunnar Eliassen (33yo)

    Director

    • Tenure: 0.7yrs
  • Keesjan Cordia (44yo)

    Director

    • Tenure: 1.1yrs

Company Information

Northern Drilling Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northern Drilling Ltd.
  • Ticker: NODL
  • Exchange: OB
  • Founded: 2017
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: kr2.592b
  • Shares outstanding: 107.56m
  • Website: https://www.northerndrillingltd.com

Number of Employees


Location

  • Northern Drilling Ltd.
  • Par La Ville Place
  • 14th Par La Ville Road
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NODLOB (Oslo Bors)YesCommon SharesNONOKMar 2017
ND6DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2017
NODLOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKMar 2017

Biography

Northern Drilling Ltd., a drilling contractor, focuses on acquiring and operating offshore drilling rigs for oil and gas industry. It owns a one semi-submersible drilling rig and one semi-submersible under ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 23:16
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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