SeaDrill (SDRL) stock popped: what can you expect in the future?

10:48 am ET, 12 Aug 2018

Seadrill Limited (SDRL) shares are trading at 19.16, down -3%. What's driving SDRL stock price? What's SDRL stock price forecast?

Seadrill Partners, amongst other offshore drillers, has seen a stock price hike, mostly as a result of the increase in the price of crude oil.  The company emerged from Chapter 11 and provided just a few data points around its financial health.   Most notably:

  • Its cash is $2.1 billion;
  • Secured bank debt is $5.7 billion.  The maturity of the first loan is in 2022;
  • New secured notes total $880 million, and their first maturity is in 2025;
  • The backlog is $2.3 billion (excluding SeaMex and Seadrill Partners).

Based on these numbers, it's clear that backlog is going down, and new contracts are coming in at much lower rates.  It's encouraging to see the company has a good cushion of cash.

This offshore drilling industry has gone through its worst financial crises, which was caused by exuberant optimism that resulted in large ordering activities, combined with a poor judgment of how the customers would react to a severe market deterioration.

What is the sentiment towards the SDRL stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is positive. 

Over the last month, Seadrill Limited (SDRL) returned +6.16%.

For the latest price and information on Seadrill Limited, please visit Finstead and search for "SDRL price" or "SDRL news".

Seadrill Limited (SDRL) Stock Guide

Updated at: 1:51 pm ET, 18 Sep 2020

Before we start: if you're looking for SDRL stock price, you can quickly find it out by visiting Finny and typing "SDRL quote". If you're looking for a quick scoop on SDRL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "SDRL". You'll get all this info in one place. Or you can just type "SDRL news" to get the latest stock news.

Looking to buy or sell Seadrill Limited (SDRL)? Interested in getting the full scoop on SDRL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this SDRL stock guide, we'll address key questions about SDRL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are SDRL earnings?
2. What is SDRL stock forecast (i.e., prediction)?
3. SDRL buy or sell? What is SDRL Finny Score?
4. What are the reasons to buy SDRL? Why should I buy SDRL stock?
5. What are the reasons to sell SDRL? Why should I sell SDRL stock?
6. What are SDRL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are SDRL earnings?

SDRL trailing 12-month earnings per share (EPS) is -$12.19.

Analyst Predictions

2. What is SDRL stock forecast (i.e., prediction)?

Based on SDRL analyst price targets, SDRL stock forecast is $5.17 (for a year from now). That means the average analyst price target for SDRL stock is $5.17. The prediction is based on 2 analyst estimates.

The low price target for SDRL is $2.50, while the high price target is $10.00.

SDRL analyst rating is Hold.

Analysis

3. SDRL buy or sell? What is SDRL Finny Score?

#{finnyScore:56}Our quantitative analysis shows 5 reasons to buy and 4 reasons to sell SDRL, resulting in Finny Score of 56.

4. What are the reasons to buy SDRL? Why should I buy SDRL stock?

Here are the reasons to buy SDRL stock:

5. What are the reasons to sell SDRL? Why should I sell SDRL stock?

Let's look at the reasons to sell SDRL stock (i.e., the bear case):

  • SDRL quarterly revenue growth was -1.50%, lower than the industry and sector average revenue growth (0.15% and -0.04%, respectively). See SDRL revenue growth chart.
  • SDRL short share of float is 10.12%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See SDRL short share of float chart.
  • SDRL short interest (days to cover the shorts) ratio is 3.52. The stock garners more short interest than the average industry, sector or S&P 500 stock. See SDRL short interest ratio chart.
  • SDRL Enterprise Value/Revenue multiple is 5.42, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See SDRL Enterprise Value/Revenue chart.

Key Stats

6. What are SDRL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for SDRL:

Metrics SDRL
Price $0.52
Average Price Target / Upside $5.17 / 903.88%
Average Analyst Rating Sell
Forward Dividend Yield 0.00%
Industry Oil & Gas Drilling
Sector Energy
Number of Employees N/A
Market Cap $47.42M
Forward P/E Ratio -0.07
Price/Book Ratio 0.04
Revenue (TTM) $1.11B
YoY Quarterly Revenue Growth -1.50%
Profit Margin -109.52%

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