Last Updated: 13 Nov 2024
Executive Summary
Seadrill Limited (SDRL) is an offshore drilling contractor that provides services to the oil and gas industry globally. The company has a market capitalization of $2.61 billion and trades on the NYSE. SDRL's latest stock price is $39.17.
Company Overview
Seadrill was founded in 1995 and is headquartered in Hamilton, Bermuda. The company operates a fleet of offshore drilling rigs, including jack-up rigs, semi-submersible rigs, and drillships. SDRL's customers include major oil and gas companies such as BP, Chevron, and ExxonMobil.
Fundamental Analysis
SDRL's financial performance has been mixed in recent years. The company reported a loss of $1.07 billion in 2020, but it returned to profitability in 2021 with net income of $220 million. SDRL's revenue has also been volatile, declining from $3.2 billion in 2019 to $2.5 billion in 2020, before rebounding to $2.8 billion in 2021.
SDRL's financial ratios are also mixed. The company's price-to-earnings ratio (P/E) of 6.32 is below the industry average, but its price-to-book ratio (P/B) of 0.852 is above the industry average. SDRL's debt-to-equity ratio of 0.67 is also above the industry average.
Technical Analysis
SDRL's stock price has been trading in a range between $34.74 and $56.46 over the past 52 weeks. The stock is currently trading near the bottom of this range. SDRL's 50-day moving average is $39.11 and its 200-day moving average is $46.23.
Short Term Outlook
SDRL's short-term outlook is mixed. The company's financial performance is improving, but its stock price is trading near the bottom of its 52-week range. SDRL's technical indicators are also mixed, with the stock's 50-day moving average below its 200-day moving average.
Long Term Outlook
SDRL's long-term outlook is more positive. The company's financial performance is expected to continue to improve as the oil and gas industry recovers from the COVID-19 pandemic. SDRL's stock price is also expected to rise as the company's financial performance improves.
Analyst Recommendations
Analysts are generally positive on SDRL. The consensus analyst rating is "buy" and the average analyst target price is $55.86.
Conclusion
SDRL is a risky investment, but it has the potential to generate significant returns. The company's financial performance is improving and its stock price is trading near the bottom of its 52-week range. SDRL's long-term outlook is positive and analysts are generally positive on the stock.
