NYSE:NE

Stock Analysis Report

Executive Summary

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide.

Snowflake

Fundamentals

Fair value with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.2%

NE

0.4%

US Energy Services

1.8%

US Market


1 Year Return

-79.4%

NE

-46.0%

US Energy Services

7.3%

US Market

Return vs Industry: NE underperformed the US Energy Services industry which returned -46% over the past year.

Return vs Market: NE underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

NEIndustryMarket
7 Day9.2%0.4%1.8%
30 Day-28.6%-13.3%-0.7%
90 Day-31.9%-16.2%0.06%
1 Year-79.4%-79.4%-44.5%-46.0%9.7%7.3%
3 Year-78.4%-78.4%-55.2%-60.6%46.3%36.9%
5 Year-92.9%-93.7%-66.3%-71.2%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Noble 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: NE ($1.3) is trading below our estimate of fair value ($18.47)

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


Price To Earnings Ratio

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

PE vs Market: NE 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 NE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NE is good value based on its PB Ratio (0.1x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Noble forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NE's revenue (8.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NE's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Noble performed over the past 5 years?

-44.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NE is unprofitable, and losses have increased over the past 5 years at a rate of -44.7% per year.

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

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


Return on Equity

High ROE: NE has a negative Return on Equity (-7.25%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Noble's financial position?


Financial Position Analysis

Short Term Liabilities: NE's short term assets ($462.1M) do not cover its short term liabilities ($734.8M)

Long Term Liabilities: NE's short term assets (462.1M) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: NE's debt to equity ratio (87%) is considered high

Reducing Debt: NE's debt to equity ratio has increased from 63.2% to 87% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NE'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: NE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.43%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.7%industryaverage4.5%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

Dividend Coverage: NE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NE'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 Noble's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Julie Robertson (63yo)

1.8yrs

Tenure

US$7,894,955

Compensation

Ms. Julie Johnson Robertson has been Chairman of the Board, President and Chief Executive Officer of Noble Corporation plc since January 11, 2018 and served as its Executive Vice President from February 10 ...


CEO Compensation Analysis

Compensation vs. Market: Julie has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Julie's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

Experienced Management: NE's management team is considered experienced (2 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

61yo

Average Age

Experienced Board: NE's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: NE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$30,99001 Oct 19
Julie Edwards
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$1.24

Ownership Breakdown


Management Team

  • Julie Robertson (63yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$7.89m
  • Jeff Chastain

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • William Turcotte (55yo)

    Senior VP

    • Tenure: 10.8yrs
    • Compensation: US$2.40m
  • Barry Smith (60yo)

    Senior Vice President of Operations

    • Tenure: 0.3yrs
  • Scott Marks (59yo)

    Senior Vice President of Engineering

    • Tenure: 12.8yrs
    • Compensation: US$1.66m
  • Craig Muirhead

    Vice President & Treasurer

    • Tenure: 0yrs
  • Robert Eifler (39yo)

    Senior Vice President of Marketing & Contracts

    • Tenure: 2.3yrs
    • Compensation: US$1.55m
  • Laura Campbell (46yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 1.2yrs

Board Members

  • Jon Marshall (67yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$285.56k
  • Mary Ricciardello (64yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$309.56k
  • Julie Robertson (63yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$7.89m
  • Julie Edwards (60yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$307.56k
  • Gordon Hall (60yo)

    Lead Director

    • Tenure: 6.5yrs
    • Compensation: US$330.06k
  • Scott Josey (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$293.56k
  • Roger Jenkins (57yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$18.50k

Company Information

Noble Corporation plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Noble Corporation plc
  • Ticker: NE
  • Exchange: NYSE
  • Founded: 1921
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$323.937m
  • Shares outstanding: 249.18m
  • Website: https://www.noblecorp.com

Number of Employees


Location

  • Noble Corporation plc
  • 10 Brook Street
  • London
  • Greater London
  • W1S 1BG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NENYSE (New York Stock Exchange)YesRegistered SharesUSUSDSep 1985
NLCDB (Deutsche Boerse AG)YesRegistered SharesDEEURSep 1985

Biography

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of December 31, 201 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:46
End of Day Share Price2019/10/17 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.