NYSE:NE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with worrying balance sheet.


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

Stable Share Price: NE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.9%

NE

19.6%

US Energy Services

9.4%

US Market


1 Year Return

-91.1%

NE

-66.9%

US Energy Services

-6.8%

US Market

Return vs Industry: NE underperformed the US Energy Services industry which returned -69.8% over the past year.

Return vs Market: NE underperformed the US Market which returned -10% over the past year.


Shareholder returns

NEIndustryMarket
7 Day8.9%19.6%9.4%
30 Day-9.6%-5.6%-3.9%
90 Day-77.6%-58.2%-16.5%
1 Year-91.1%-91.1%-65.7%-66.9%-4.8%-6.8%
3 Year-95.3%-95.3%-75.4%-78.8%23.4%15.2%
5 Year-98.4%-98.5%-78.7%-82.5%41.3%25.7%

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

Below Fair Value: NE ($0.22) is trading below our estimate of fair value ($8.59)

Significantly Below Fair Value: 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

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 (0x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Noble forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

31.4%

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 is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: NE's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Noble performed over the past 5 years?

-31.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NE is currently unprofitable.

Growing Profit Margin: NE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NE is unprofitable, and losses have increased over the past 5 years at a rate of -31.5% 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 (-34.4%).


Return on Equity

High ROE: NE has a negative Return on Equity (-23.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Noble's financial position?


Financial Position Analysis

Short Term Liabilities: NE's short term assets ($422.1M) do not cover its short term liabilities ($516.9M).

Long Term Liabilities: NE's short term assets ($422.1M) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: NE's debt to equity ratio (105%) is considered high.

Reducing Debt: NE's debt to equity ratio has increased from 66.8% to 105% over the past 5 years.


Balance Sheet


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NE has less than a year of cash runway if free cash flow continues to grow at historical rates of 3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

1.3yrs

Average management tenure


CEO

Julie Robertson (63yo)

2.25s

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's total compensation ($USD7.89M) is above average for companies of similar size in the US market ($USD615.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Julie Robertson
Executive Chairman of the Board2.25yrsUS$7.89m0.53% $346.8k
William Turcotte
Senior VP11.33yrsUS$2.40m0.073% $47.5k
Robert Eifler
President0.67yrUS$1.55m0.032% $21.1k
Richard Barker
Senior VP & CFO0.083yrno datano data
Barry Smith
Senior Vice President of Operations0.83yrno datano data
Laura Campbell
VP, Controller & Principal Accounting Officer1.67yrsno data0.0060% $3.9k
Tom Madden
VP & GM of Administrationno datano datano data
Jeffrey Chastain
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Craig Muirhead
Vice President & Treasurerno datano datano data

1.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: NE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Julie Robertson
Executive Chairman of the Board2.25yrsUS$7.89m0.53% $346.8k
Jon Marshall
Independent Director10.5yrsUS$285.56k0.093% $60.9k
Mary Ricciardello
Independent Director16.5yrsUS$309.56k0.093% $60.6k
Julie Edwards
Lead Independent Directorno dataUS$307.56k0.092% $60.0k
Gordon Hall
Independent Director10.5yrsUS$330.06k0.074% $48.2k
Scott Josey
Independent Director6.25yrsUS$293.56k0.058% $38.0k
Roger Jenkins
Independent Director1.5yrsUS$18.50k0.017% $10.9k

8.4yrs

Average Tenure

61yo

Average Age

Experienced Board: NE's board of directors are considered experienced (8.4 years average tenure).


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.


Top Shareholders

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$65.248m
  • Shares outstanding: 250.95m
  • 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 February 18, 2020, the company operated a fleet of 25 drilling rigs consisted of 12 floaters and 13 jackups. Noble Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 03:10
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.