It’s worth it to have a look at SeaDrill Limited (NYSE:SDRL) as there may be a chasm between the bulls and the bears as far as recent trading activity goes. Now trading with a market value of 143.47M, the company has a mix of catalysts and obstacles that spring from the nature of its operations. In light of the many issues surrounding this company, we thought it was a good time to take a close look at the numbers in order to form a realistic perspective on the fundamental picture for this stock.
SeaDrill Limited (NYSE:SDRL) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For SDRL, the company currently has 1.44 billion of cash on the books, which is offset by 3.73 billion in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 20.72 billion in total assets, balanced by 10.77 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
SeaDrill Limited (SDRL) saw 51 million in free cash flow last quarter, representing a quarterly net change in cash of -137 million. Perhaps most importantly where cash movements are concerned, the company saw about 64 million in net operating cash flow.
SeaDrill Limited (NYSE:SDRL) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 577 million in total revenues. That represents a quarterly year/year change in revenues of -0.34 in sequential terms, the SDRL saw sales decline by 0.01.
But what about the bottom line? After all, that’s what really matters in the end. SeaDrill Limited (SDRL) is intriguing when broken down to its core data. The cost of selling goods last quarter was 429 million, yielding a gross basic income of 148 million. For shareholders, given the total diluted outstanding shares of 504 million, this means overall earnings per share of -0.28.
Is SeaDrill Limited (NYSE:SDRL) Valuation Attractive
We consider a median price to earnings ratio on the stock, that corresponds with a stock price of 9,999. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on SeaDrill Limited.