NYSE:DO

Stock Analysis Report

Diamond Offshore Drilling

Executive Summary

Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry worldwide.

Snowflake

Fundamentals

Fair value with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.1%

DO

2.8%

US Energy Services

1.3%

US Market


1 Year Return

-71.1%

DO

-47.2%

US Energy Services

5.9%

US Market

Return vs Industry: DO underperformed the US Energy Services industry which returned -47.2% over the past year.

Return vs Market: DO underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

DOIndustryMarket
7 Day11.1%2.8%1.3%
30 Day-26.9%-10.5%-1.9%
90 Day-32.8%-16.3%-1.8%
1 Year-71.1%-71.1%-45.7%-47.2%8.3%5.9%
3 Year-67.8%-67.8%-53.2%-58.9%45.6%36.2%
5 Year-84.5%-85.1%-64.9%-70.1%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Diamond Offshore 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

Undervalued: DO ($5.62) is trading below our estimate of fair value ($21.18)

Significantly Undervalued: DO is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DO is good value based on its PB Ratio (0.2x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Diamond Offshore Drilling forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: DO's revenue (6.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DO's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Diamond Offshore Drilling performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DO is unprofitable, and losses have increased over the past 5 years at a rate of -33.9% per year.

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

Earnings vs Industry: DO is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-13.1%).


Return on Equity

High ROE: DO has a negative Return on Equity (-9.35%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Diamond Offshore Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: DO's short term assets ($590.7M) exceeds its short term liabilities ($269.4M)

Long Term Liabilities: DO's short term assets (590.7M) do not cover its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: DO's debt to equity ratio (58.1%) is considered high

Reducing Debt: DO's debt to equity ratio has increased from 54.8% to 58.1% over the past 5 years.

Debt Coverage: DO's debt is not well covered by operating cash flow (5%).

Interest Coverage: Insufficient data to determine if DO's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: DO's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

Dividend Coverage: DO is not paying a notable dividend for .


Future Payout to Shareholders

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


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Marc Gerard Edwards (58yo)

5.6yrs

Tenure

US$5,732,083

Compensation

Mr. Marc Gerard Rex Edwards has been the Chief Executive Officer, President and Director of Diamond Offshore Drilling, Inc. since March 3, 2014. Mr. Edwards served as Senior Vice President of Completion an ...


CEO Compensation Analysis

Compensation vs. Market: Marc Gerard's total compensation ($USD5.73M) is about average for companies of similar size in the US market ($USD2.76M).

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


Management Age and Tenure

5.1yrs

Average Tenure

57yo

Average Age

Experienced Management: DO's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: DO's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: DO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$50,56717 Sep 19
Scott Kornblau
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares5,819
Max PriceUS$8.69
SellUS$7,72012 Sep 19
Paul Gaffney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$7.72
BuyUS$39,64026 Feb 19
Paul Gaffney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$9.91

Ownership Breakdown


Management Team

  • David Roland (57yo)

    Senior VP

    • Tenure: 5.1yrs
    • Compensation: US$827.26k
  • Marc Gerard Edwards (58yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$5.73m
  • Karl Sellers

    Senior Vice President of Technical Services

    • Tenure: 0yrs
  • Scott Kornblau (48yo)

    Senior VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$817.77k
  • Ron Woll (51yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.76m
  • Stephen Elwood

    Senior Vice President of Tax

    • Tenure: 0yrs
  • Tim Osburn

    Chief Information Officer

    • Tenure: 0yrs
  • Aaron Sobel

    Vice President of Human Resources

    • Tenure: 0yrs
  • Thomas Roth (63yo)

    Senior Vice President of Worldwide Operations

    • Tenure: 2.8yrs
    • Compensation: US$797.62k
  • Samir Ali

    Vice President of Investor Relations & Corporate Development

    • Tenure: 0yrs

Board Members

  • Andrew Tisch (70yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$29.15k
  • Clifford Sobel (69yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$86.65k
  • James Tisch (66yo)

    Chairman of the Board

    • Tenure: 23.9yrs
    • Compensation: US$75.01k
  • Ed Grebow (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$124.15k
  • Anatol Feygin (51yo)

    Independent Director

    • Tenure: 0.4yrs
  • Paul Gaffney (72yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$104.15k
  • Marc Gerard Edwards (58yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$5.73m
  • Kenneth Siegel (62yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$29.15k

Company Information

Diamond Offshore Drilling, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Diamond Offshore Drilling, Inc.
  • Ticker: DO
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$773.842m
  • Shares outstanding: 137.69m
  • Website: https://www.diamondoffshore.com

Number of Employees


Location

  • Diamond Offshore Drilling, Inc.
  • 15415 Katy Freeway
  • Suite 100
  • Houston
  • Texas
  • 77094
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DONYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1995
DO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1995
DO1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1995
0I92LSE (London Stock Exchange)YesCommon StockGBUSDOct 1995

Biography

Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry worldwide. The company operates a fleet of 17 offshore drilling rigs, including 4 drillships and 13 semisubmersibl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:33
End of Day Share Price2019/10/14 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.