Odfjell Drilling (OB:ODL) - Share price, News & Analysis

ODL fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

ODL Overview

Odfjell Drilling Ltd. operates as an integrated offshore drilling, well service, and engineering company worldwide.

Rewards

Trading at 68.2% below our estimate of its fair value

Earnings grew by 241.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 13.8% per year for the next 3 years

Has a high level of debt

Price History & Performance

Summary of all time highs, changes and price drops for Odfjell Drilling
Historical stock prices
Current Share Price	kr22.58
52 Week High	kr9.54
52 Week Low	kr25.32
Beta	2.58
1 Month Change	16.39%
3 Month Change	9.08%
1 Year Change	129.47%
3 Year Change	-26.93%
5 Year Change	109.07%
Change since IPO	-44.93%

Recent News & Updates

Sep 02

Returns At Odfjell Drilling (OB:ODL) Appear To Be Weighed Down

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Jul 13

Here's Why Odfjell Drilling (OB:ODL) Is Weighed Down By Its Debt Load

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jun 16

It's Probably Less Likely That Odfjell Drilling Ltd.'s (OB:ODL) CEO Will See A Huge Pay Rise This Year

The underwhelming share price performance of Odfjell Drilling Ltd. ( OB:ODL ) in the past three years would have...

Shareholder Returns

	ODL	NO Energy Services	NO Market
7D	0.8%	0.8%	0.9%
1Y	129.5%	6.5%	38.0%

Return vs Industry: ODL exceeded the Norwegian Energy Services industry which returned 8.6% over the past year.

Return vs Market: ODL exceeded the Norwegian Market which returned 37.1% over the past year.

Price Volatility

Is ODL's price volatile compared to industry and market?
ODL volatility
ODL Beta	2.58
Industry Beta	2
Market Beta	1

Stable Share Price: ODL is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ODL's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1914	2,803	Simen Lieungh	https://www.odfjelldrilling.com

Odfjell Drilling Ltd. operates as an integrated offshore drilling, well service, and engineering company worldwide. The company operates through three segments: Mobile Offshore Drilling Units, Drilling & Technology, and Well Services. It operates drilling units and offers management services to owners of semisubmersibles and drill ships; and project management and follow-up during construction, management of regulatory requirements, marketing and client relations, preparations for operation, and drilling operations.

Odfjell Drilling Fundamentals Summary

How do Odfjell Drilling's earnings and revenue compare to its market cap?
ODL fundamental statistics
Market Cap	US$645.94m
Earnings (TTM)	US$134.74m
Revenue (TTM)	US$980.76m

4.7x

P/E Ratio

0.7x

P/S Ratio

Is ODL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ODL income statement (TTM)
Revenue	US$980.76m
Cost of Revenue	US$0
Gross Profit	US$980.76m
Expenses	US$846.01m
Earnings	US$134.74m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 25, 2021

Earnings per share (EPS)	0.57
Gross Margin	100.00%
Net Profit Margin	13.74%
Debt/Equity Ratio	93.2%

How did ODL perform over the long term?

See historical performance and comparison

Valuation

Is Odfjell Drilling 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: ODL (NOK22.8) is trading below our estimate of fair value (NOK71.8)

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

Price To Earnings Ratio

PE vs Industry: ODL is good value based on its PE Ratio (4.8x) compared to the Norwegian Energy Services industry average (4.9x).

PE vs Market: ODL is good value based on its PE Ratio (4.8x) compared to the Norwegian market (13.7x).

Price to Earnings Growth Ratio

PEG Ratio: ODL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: ODL is good value based on its PB Ratio (0.5x) compared to the NO Energy Services industry average (0.7x).

Future Growth

How is Odfjell Drilling forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-13.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ODL's earnings are forecast to decline over the next 3 years (-13.8% per year).

Earnings vs Market: ODL's earnings are forecast to decline over the next 3 years (-13.8% per year).

High Growth Earnings: ODL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ODL's revenue is expected to decline over the next 3 years (-3.9% per year).

High Growth Revenue: ODL's revenue is forecast to decline over the next 3 years (-3.9% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ODL's Return on Equity is forecast to be low in 3 years time (4.3%).

Past Performance

How has Odfjell Drilling performed over the past 5 years?

58.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ODL has high quality earnings.

Growing Profit Margin: ODL's current net profit margins (13.7%) are higher than last year (4.9%).

Past Earnings Growth Analysis

Earnings Trend: ODL has become profitable over the past 5 years, growing earnings by 58.7% per year.

Accelerating Growth: ODL's earnings growth over the past year (241.5%) exceeds its 5-year average (58.7% per year).

Earnings vs Industry: ODL earnings growth over the past year (241.5%) exceeded the Energy Services industry 36.5%.

Return on Equity

High ROE: ODL's Return on Equity (11.8%) is considered low.

Financial Health

How is Odfjell Drilling's financial position?

Financial Position Analysis

Short Term Liabilities: ODL's short term assets ($355.4M) exceed its short term liabilities ($331.1M).

Long Term Liabilities: ODL's short term assets ($355.4M) do not cover its long term liabilities ($1.0B).

Debt to Equity History and Analysis

Debt Level: ODL's debt to equity ratio (93.2%) is considered high.

Reducing Debt: ODL's debt to equity ratio has reduced from 189.2% to 93.2% over the past 5 years.

Debt Coverage: ODL's debt is well covered by operating cash flow (26.6%).

Interest Coverage: ODL's interest payments on its debt are well covered by EBIT (3.3x coverage).

Balance Sheet

Dividend

What is Odfjell Drilling current dividend yield, its reliability and sustainability?

0.31%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ODL'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 ODL's dividends per share have been stable in the past.

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

Current Payout to Shareholders

Dividend Coverage: ODL is not paying a notable dividend for the Norwegian market.

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Energy industry.

Management

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

3.8yrs

Average management tenure

CEO

Simen Lieungh (61 yo)

11.75yrs

Tenure

US$1,124,000

Compensation

Mr. Simen Lieungh was Director at Multiconsult ASA since April 25, 2019 until 2021. He has been the Chief Executive Officer and President of Odfjell Drilling AS since October 1, 2010 and Odfjell Drilling L...

CEO Compensation Analysis

Compensation vs Market: Simen's total compensation ($USD1.12M) is above average for companies of similar size in the Norwegian market ($USD693.29K).

Compensation vs Earnings: Simen's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ODL's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: ODL's board of directors are not considered experienced ( 2.8 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.

Data	Last Updated (UTC time)
Company Analysis	2021/10/27 16:20
End of Day Share Price	2021/10/27 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data