NEW YORK (TheStreet) -- Shares of Seadrill Ltd. are higher by 2.44% to $12.62 in mid-afternoon trading on Tuesday, as oil prices move into the green this afternoon following a round of declines earlier in the day. Crude oil (WTI) is advancing by 1.57% to $53.61 per barrel and Brent crude is climbing by 1.94% to $62.59 per barrel this afternoon, according to the Bloomberg index. Oil is rising off of threats in the Middle East and a drop in U.S. oil rig counts. U.S crude oil futures options are set to expire today, which could also be giving oil a boost this afternoon, Reuters reports. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Oil was lower this morning on concerns regarding the global oversupply, with particular emphasis in the U.S. For five straight weeks U.S. stockpiles have been rising to a record high of 417.9 million barrels as of February 6, the Wall Street Journal reports. Separately, TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate SEADRILL LTD (SDRL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: SDRL's revenue growth trails the industry average of 11.1%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, SEADRILL LTD's return on equity significantly exceeds that of both the industry average and the S&P 500. The gross profit margin for SEADRILL LTD is rather high; currently it is at 55.61%. Regardless of SDRL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SDRL's net profit margin of 11.52% compares favorably to the industry average. The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, SDRL maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems. Net operating cash flow has decreased to $397.00 million or 25.51% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. You can view the full analysis from the report here: SDRL Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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