OB:SDRL

Stock Analysis Report

Executive Summary

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Seadrill has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.0%

OB:SDRL

3.4%

NO Energy Services

1.5%

NO Market


1 Year Return

-86.9%

OB:SDRL

-41.6%

NO Energy Services

-14.8%

NO Market

SDRL underperformed the Energy Services industry which returned -41.6% over the past year.

SDRL underperformed the Market in Norway which returned -14.8% over the past year.


Share holder returns

SDRLIndustryMarket
7 Day-3.0%3.4%1.5%
30 Day-43.5%-14.6%-3.3%
90 Day-56.0%-21.9%-5.4%
1 Year-86.9%-86.9%-40.4%-41.6%-10.0%-14.8%
3 Yearn/a-3.8%-10.5%38.1%19.9%
5 Yearn/a-51.2%-65.5%38.6%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Seadrill's share price is below the future cash flow value, and at a moderate discount (> 20%).

Seadrill's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Seadrill is loss making, we can't compare its value to the NO Energy Services industry average.

Seadrill is loss making, we can't compare the value of its earnings to the Norway market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Seadrill, we can't assess if its growth is good value.


Price Based on Value of Assets

Seadrill is good value based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

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

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Seadrill's revenue is expected to grow significantly at over 20% yearly.

Seadrill is not considered high growth as it is expected to be loss making for the next 1-3 years.

Seadrill's revenue growth is expected to exceed the Norway market average.

Unable to compare Seadrill's earnings growth to the Norway market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Seadrill's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Seadrill will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Seadrill performed over the past 5 years?

-73.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Seadrill does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Seadrill's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Seadrill's 1-year growth to the NO Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Seadrill has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Seadrill has efficiently used its assets last year compared to the NO Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Seadrill improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Seadrill's financial position?


Financial Position Analysis

Seadrill is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Seadrill's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Seadrill's level of debt (266.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (126.4% vs 266.3% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x 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.

Seadrill has sufficient cash runway for more than 3 years based on current free cash flow.

Seadrill has sufficient cash runway for 2.2 years if free cash flow continues to grow at historical rates of 109.3% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Seadrill's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Seadrill's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Seadrill has not reported any payouts.

Unable to verify if Seadrill's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Seadrill has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Seadrill's dividends in 3 years as they are not expected to pay a notable one for Norway.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Anton Dibowitz (47yo)

2.1yrs

Tenure

0

Mr. Anton Dibowitz had been Chief Executive Officer and President of Seadrill Management Ltd. at SeaDrill Limited since July 1, 2017 and July 2018 respectively. Mr. Dibowitz served as the Chief Commercial  ...


CEO Compensation Analysis

Anton's remuneration is lower than average for companies of similar size in Norway.

Insufficient data for Anton to compare compensation growth.


Management Age and Tenure

2.0yrs

Average Tenure

48yo

Average Age

The tenure for the Seadrill management team is about average.


Board Age and Tenure

1.1yrs

Average Tenure

55yo

Average Age

The average tenure for the Seadrill board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$342,239,99806 Dec 18
John Fredriksen
EntityIndividual
Role
Member of the Board of Directors
Chairman of the Board
Shares3,000,000
Max PriceUS$114.08

Ownership Breakdown


Management Team

  • Stuart Jackson (59yo)

    Chief Financial Officer

    • Tenure: 0.1yrs
  • Anton Dibowitz (47yo)

    CEO & President of Seadrill Management Limited

    • Tenure: 2.1yrs
  • John Roche (39yo)

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Jose Firmo (49yo)

    Senior Vice President of Western Hemisphere

    • Tenure: 4.8yrs
  • Leif Nelson (44yo)

    COO & Senior VP of Seadrill Management Limited

    • Tenure: 4.1yrs
  • Chris Edwards (54yo)

    General Counsel & Senior VP of Seadrill Management Limited

    • Tenure: 4.5yrs
  • Torsten Sauer-Petersen

    Senior Vice President of Human Resources - Seadrill Management Ltd

    • Tenure: 2.0yrs
  • Matt Lyne

    Senior Vice President of Commercial

    • Tenure: 1.6yrs
  • Reid Warriner

    Senior Vice President of Eastern Hemisphere

    • Tenure: 0.6yrs
  • Emma Li

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • John Fredriksen (75yo)

    Chairman of the Board

    • Tenure: 14.3yrs
  • Gene Davis (64yo)

    Director

    • Tenure: 1.1yrs
  • Peter Sharpe (60yo)

    Director

    • Tenure: 1.1yrs
  • Harald Thorstein (45yo)

    Director

    • Tenure: 1.7yrs
  • Birgitte Vartdal (42yo)

    Director

    • Tenure: 1.1yrs
  • Kjell-Erik Østdahl (55yo)

    Director

    • Tenure: 1.1yrs
  • Scott Vogel (44yo)

    Director

    • Tenure: 1.1yrs

Company Information

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


Key Information

  • Name: Seadrill Limited
  • Ticker: SDRL
  • Exchange: OB
  • Founded: 2005
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$227.000m
  • Listing Market Cap: US$2.032b
  • Shares outstanding: 100.00m
  • Website: https://www.seadrill.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDRLOB (Oslo Bors)YesNew Common SharesNONOKJul 2018
SDRLNYSE (New York Stock Exchange)YesNew Common SharesUSUSDJul 2018
S9ADDB (Deutsche Boerse AG)YesNew Common SharesDEEURJul 2018
SDRLOBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBNOKJul 2018
0Z5DLSE (London Stock Exchange)YesNew Common SharesGBUSDJul 2018

Biography

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Other. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 22:01
End of Day Share Price2019/08/23 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.