Shelf Drilling (North Sea), Ltd.

OB:SDNS Stock Report

Market Cap: NOK 2.9b

Shelf Drilling (North Sea) Valuation

Is SDNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SDNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SDNS (NOK21) is trading below our estimate of fair value (NOK153.23)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SDNS?

Key metric: As SDNS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SDNS. This is calculated by dividing SDNS's market cap by their current revenue.
What is SDNS's PS Ratio?
PS Ratio1.7x
SalesUS$116.90m
Market CapUS$268.72m

Price to Sales Ratio vs Peers

How does SDNS's PS Ratio compare to its peers?

The above table shows the PS ratio for SDNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
SHLF Shelf Drilling
0.3x2.7%NOK 3.6b
NOL Northern Ocean
0.7x-1.6%NOK 2.3b
OTL Odfjell Technology
0.4x3.1%NOK 1.9b
DVD Deep Value Driller
2.5x-1.6%NOK 1.5b
SDNS Shelf Drilling (North Sea)
1.7x34.5%NOK 2.9b

Price-To-Sales vs Peers: SDNS is expensive based on its Price-To-Sales Ratio (1.7x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

How does SDNS's PS Ratio compare vs other companies in the NO Energy Services Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
ARCH Archer
0.1x8.9%US$135.50m
DWELLOP Dwellop
0.09xn/aUS$2.55m
No more companies available in this PS range
SDNS 1.7xIndustry Avg. 1.0xNo. of Companies5PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SDNS is expensive based on its Price-To-Sales Ratio (1.7x) compared to the Norwegian Energy Services industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is SDNS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SDNS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: SDNS is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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