NYSE:RDC

Stock Analysis Report

Executive Summary

Rowan Companies plc provides offshore contract drilling services to the oil and gas industry.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

RDC

-2.5%

US Energy Services

0.4%

US Market


1 Year Return

-26.5%

RDC

-46.1%

US Energy Services

6.9%

US Market


Shareholder returns

RDCIndustryMarket
7 Day-1.8%-2.5%0.4%
30 Day-6.9%-12.7%-1.1%
90 Day4.3%-17.1%-0.5%
1 Year-26.5%-26.5%-44.6%-46.1%9.3%6.9%
3 Year-29.3%-29.3%-54.7%-60.2%45.8%36.4%
5 Year-62.9%-64.0%-66.2%-71.2%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rowan Companies undervalued compared to its fair value and its price relative to the market?

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RDC ($10.93) is trading below our estimate of fair value ($18.43)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RDC is good value based on its PB Ratio (0.3x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Rowan Companies forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RDC's revenue (8.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: RDC's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Rowan Companies performed over the past 5 years?

-32.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RDC is unprofitable, and losses have increased over the past 5 years at a rate of -32.3% per year.

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

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


Return on Equity

High ROE: RDC has a negative Return on Equity (-6.9%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Rowan Companies's financial position?


Financial Position Analysis

Short Term Liabilities: RDC's short term assets ($1.3B) exceeds its short term liabilities ($453.6M)

Long Term Liabilities: RDC's short term assets (1.3B) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: RDC's debt to equity ratio (49.9%) is considered high

Reducing Debt: RDC's debt to equity ratio has increased from 41.2% to 49.9% over the past 5 years.

Debt Coverage: RDC's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.0yrs

Average management tenure


CEO

Tom Burke (51yo)

5yrs

Tenure

US$13,370,280

Compensation

Dr. Thomas P. Burke, also known as Tom, has been the Chief Executive Officer of Rowan Companies Plc since April 25, 2014 and has been its President since March 7, 2013. Dr. Burke has been President and Chi ...


CEO Compensation Analysis

Information is not available.

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


Management Age and Tenure

2.0yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

5.0yrs

Average Tenure

65yo

Average Age

Experienced Board: RDC's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$18,85405 Mar 19
Richard Anderson
EntityIndividual
Shares1,617
Max PriceUS$11.66
SellUS$9,58202 Mar 19
Richard Anderson
EntityIndividual
Shares842
Max PriceUS$11.38
SellUS$11,02028 Feb 19
Richard Anderson
EntityIndividual
Shares950
Max PriceUS$11.60
SellUS$16,931,73901 Feb 19
Odey Asset Management LLP
EntityCompany
Shares1,359,979
Max PriceUS$12.45
BuyUS$32,988,98401 Feb 19
Odey Asset Management LLP
EntityCompany
Shares2,647,591
Max PriceUS$12.46
BuyUS$19,988,45930 Nov 18
Canyon Capital Advisors, LLC
EntityCompany
Shares1,401,500
Max PriceUS$14.78
BuyUS$90,189,56307 Nov 18
Canyon Capital Advisors, LLC
EntityCompany
Shares4,607,338
Max PriceUS$19.58

Ownership Breakdown


Management Team

  • Dennis Baldwin (57yo)

    Chief Accounting Officer

    • Tenure: 3yrs
  • Stephen Butz (46yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$4.43m
  • Alan Quintero (55yo)

    Senior Vice President of Business Development

    • Tenure: 1.3yrs
  • Mark Mai (57yo)

    Executive VP

    • Tenure: 1.9yrs
    • Compensation: US$1.40m
  • Travis Brooks (60yo)

    Executive Vice President of Operations & Engineering

    • Tenure: 2.2yrs
    • Compensation: US$2.24m
  • Tom Burke (51yo)

    President

    • Tenure: 5yrs
    • Compensation: US$13.37m
  • Kelly McHenry (46yo)

    Chief Executive Officer of ARO Drilling

    • Tenure: 1.9yrs
  • Jason Anderson (42yo)

    Vice President of Human Resources

    • Tenure: 1.9yrs
  • Carrie Prati

    Director of Investor Relations

    • Tenure: 0yrs
  • Brian Jackson

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tom Hix (70yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$287.08k
  • Charlie Szews (61yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$273.33k
  • Jack Moore (65yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$273.33k
  • Tore Sandvold (70yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$273.33k
  • Thierry Pilenko (60yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$244.68k
  • Bill Albrecht (66yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$362.69k
  • Suzanne Nimocks (59yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$282.49k
  • John Quicke (69yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$287.08k
  • Tom Burke (51yo)

    President

    • Tenure: 5yrs
    • Compensation: US$13.37m

Company Information

Rowan Companies plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rowan Companies plc
  • Ticker: RDC
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$1.391b
  • Shares outstanding: 127.29m
  • Website: https://www.rowan.com

Number of Employees


Location

  • Rowan Companies plc
  • 2800 Post Oak Boulevard
  • Suite 5450
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDCNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDJan 1968
RC0DB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJan 1968

Biography

Rowan Companies plc provides offshore contract drilling services to the oil and gas industry. The company operates through three segments: Deepwater, Jack-ups, and ARO. The Deepwater segment operates 4 ult ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/12 01:41
End of Day Share Price2019/04/10 00:00
Earnings2018/12/31
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.