Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.05
ATW's Cash to Debt is ranked higher than
59% of the 197 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.28 vs. ATW: 0.05 )
ATW' s 10-Year Cash to Debt Range
Min: 0.05   Max: 5.58
Current: 0.05

0.05
5.58
Equity to Asset 0.57
ATW's Equity to Asset is ranked higher than
80% of the 181 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.53 vs. ATW: 0.57 )
ATW' s 10-Year Equity to Asset Range
Min: 0.5   Max: 0.86
Current: 0.57

0.5
0.86
Interest Coverage 10.50
ATW's Interest Coverage is ranked higher than
74% of the 130 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9.05 vs. ATW: 10.50 )
ATW' s 10-Year Interest Coverage Range
Min: 1.29   Max: 173.48
Current: 10.5

1.29
173.48
F-Score: 4
Z-Score: 1.96
M-Score: -2.42
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 37.38
ATW's Operating margin (%) is ranked higher than
94% of the 185 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.64 vs. ATW: 37.38 )
ATW' s 10-Year Operating margin (%) Range
Min: 4.48   Max: 50.95
Current: 37.38

4.48
50.95
Net-margin (%) 29.03
ATW's Net-margin (%) is ranked higher than
94% of the 185 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.51 vs. ATW: 29.03 )
ATW' s 10-Year Net-margin (%) Range
Min: -8.84   Max: 42.75
Current: 29.03

-8.84
42.75
ROE (%) 14.34
ATW's ROE (%) is ranked higher than
93% of the 199 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.47 vs. ATW: 14.34 )
ATW' s 10-Year ROE (%) Range
Min: -4.74   Max: 29.52
Current: 14.34

-4.74
29.52
ROA (%) 8.34
ATW's ROA (%) is ranked higher than
94% of the 205 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.23 vs. ATW: 8.34 )
ATW' s 10-Year ROA (%) Range
Min: -2.65   Max: 23.7
Current: 8.34

-2.65
23.7
ROC (Joel Greenblatt) (%) 11.55
ATW's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 203 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.52 vs. ATW: 11.55 )
ATW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 1.5   Max: 33.06
Current: 11.55

1.5
33.06
Revenue Growth (3Y)(%) 22.30
ATW's Revenue Growth (3Y)(%) is ranked higher than
88% of the 134 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 12.10 vs. ATW: 22.30 )
ATW' s 10-Year Revenue Growth (3Y)(%) Range
Min: -1.3   Max: 42.5
Current: 22.3

-1.3
42.5
EBITDA Growth (3Y)(%) 16.50
ATW's EBITDA Growth (3Y)(%) is ranked higher than
85% of the 121 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.70 vs. ATW: 16.50 )
ATW' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -20.4   Max: 64.3
Current: 16.5

-20.4
64.3
EPS Growth (3Y)(%) 8.10
ATW's EPS Growth (3Y)(%) is ranked higher than
83% of the 121 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.40 vs. ATW: 8.10 )
ATW' s 10-Year EPS Growth (3Y)(%) Range
Min: -34.1   Max: 149.7
Current: 8.1

-34.1
149.7
» ATW's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

ATW Guru Trades in Q4 2013

First Pacific Advisors 1,532,606 sh (+185.49%)
FPA Capital Fund 719,606 sh (+159.59%)
Jim Simons 771,900 sh (+129.87%)
Chuck Royce 1,300,204 sh (+102.89%)
Jeremy Grantham 8,500 sh (+41.67%)
David Dreman 177,241 sh (+36.18%)
Scott Black 179,048 sh (+5.51%)
Paul Tudor Jones 13,183 sh (+3.8%)
RS Investment Management Sold Out
Columbia Wanger 3,816,398 sh (-18.47%)
Steven Cohen 19,853 sh (-34.67%)
» More
Q1 2014

ATW Guru Trades in Q1 2014

FPA Capital Fund 991,306 sh (+37.76%)
First Pacific Advisors 2,086,806 sh (+36.16%)
David Dreman 207,266 sh (+16.94%)
Scott Black 200,293 sh (+11.87%)
Chuck Royce 1,349,004 sh (+3.75%)
Steven Cohen Sold Out
Jeremy Grantham Sold Out
Paul Tudor Jones 7,100 sh (-46.14%)
Columbia Wanger 1,970,609 sh (-48.36%)
Jim Simons 159,718 sh (-79.31%)
» More
Q2 2014

ATW Guru Trades in Q2 2014

Arnold Van Den Berg 290,880 sh (New)
George Soros 117,014 sh (New)
First Pacific Advisors 2,400,400 sh (+15.03%)
FPA Capital Fund 1,079,800 sh (+8.93%)
Jim Simons Sold Out
David Dreman 203,196 sh (-1.96%)
Scott Black 156,096 sh (-22.07%)
Columbia Wanger 1,477,202 sh (-25.04%)
Chuck Royce 864,892 sh (-35.89%)
Paul Tudor Jones 3,900 sh (-45.07%)
» More
Q3 2014

ATW Guru Trades in Q3 2014

Steven Cohen 153,200 sh (New)
Paul Tudor Jones 11,000 sh (+182.05%)
Arnold Van Den Berg 560,680 sh (+92.75%)
Chuck Royce 1,506,241 sh (+74.15%)
First Pacific Advisors 2,786,900 sh (+16.1%)
FPA Capital Fund 1,242,600 sh (+15.08%)
David Dreman 206,006 sh (+1.38%)
George Soros Sold Out
Columbia Wanger Sold Out
Scott Black 155,786 sh (-0.2%)
» More
» Details

Insider Trades

Latest Guru Trades with ATW

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Arnold Van Den Berg 2014-09-30 Add 92.75%1.15%$42.98 - $52.1 $ 29.35-39%560680
FPA Capital Fund 2014-09-30 Add 15.08%0.77%$42.98 - $52.1 $ 29.35-39%1242600
George Soros 2014-09-30 Sold Out 0.05%$42.98 - $52.1 $ 29.35-39%0
Arnold Van Den Berg 2014-06-30 New Buy1.3%$45.7 - $53.79 $ 29.35-40%290880
FPA Capital Fund 2014-06-30 Add 8.93%0.45%$45.7 - $53.79 $ 29.35-40%1079800
Scott Black 2014-06-30 Reduce -22.07%0.24%$45.7 - $53.79 $ 29.35-40%156096
George Soros 2014-06-30 New Buy0.05%$45.7 - $53.79 $ 29.35-40%117014
FPA Capital Fund 2014-03-31 Add 37.76%1.48%$45.35 - $53.39 $ 29.35-40%991306
Scott Black 2014-03-31 Add 11.87%0.12%$45.35 - $53.39 $ 29.35-40%200293
David Dreman 2014-03-31 Add 16.94%0.12%$45.35 - $53.39 $ 29.35-40%207266
FPA Capital Fund 2013-12-31 Add 159.59%2.77%$50.7 - $58.04 $ 29.35-46%719606
David Dreman 2013-12-31 Add 36.18%0.19%$50.7 - $58.04 $ 29.35-46%177241
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Atwood Oceanics Inc

FPA Capital Fund Comments on Atwood Oceanics - Jul 23, 2014

We added to a number of existing positions in the quarter and started one new position, which is too small of a position to talk about at this point. Among the stocks that we added to in the quarter were Atwood Oceanics (ATW) and Titan International (TWI).

Although ATW appreciated roughly 4% in the June quarter, in early April the stock was down 10% from its closing first quarter price. As we mentioned last quarter, when we also added to the position, investors are concerned about the prices the company can charge to rent out its equipment to its customers. Atwood owns off-shore drilling rigs, some of which cost upwards of $600 million apiece to construct today.

These $600 million rigs, typically very sophisticated drill ships, allow ATW’s oil & gas exploration customers to drill in the ultra-deep waters (UDW) of the Gulf of Mexico, off the coast of western Africa, or in the deep waters of Brazil. These deep water basins, and other basins, hold the potential to extract over a hundred billion barrels of oil over the next few decades. However, these are very expensive and long- term projects, which not every oil company has access to or the capital to risk. Hence, ATW’s drill ships can potentially be rented out to a narrower group of customers than rigs for shallow water drilling (typically four-hundred feet of water depth), where the company’s jack-up drilling rigs operate.

While there are a number of potentially large oil & gas reserves in the ultra-deep waters, generally 7,500 feet of water or deeper, the timing of when these projects get started can be lumpy. Additionally, ATW is not the only drilling rig operator that sees this very large opportunity, so the company’s competitors have also ordered new UDW drill ships. Thus, the market is concerned about a temporary supply and demand imbalance for UDW drill ships.

In our conservative analysis, we think UDW drill ship rental rates may fall from roughly $600,000 a day, which is where day rates were in late 2013, to roughly $500,000 a day. In this downside scenario, we estimate that ATW could earn close to $5.00 a share this year and over $7.00 a share in 2015 and 2016. This also assumes one of the company’s semi-submersible rigs is idled later this year. With ATW trading below $50, we believe the risk-to-reward ratio warranted additional capital being deployed in the stock. Subsequent to our additional purchases in the second quarter, two of ATW’s competitors announced new UDW drill ship contracts at much higher rates than many investors and Wall Street analysts expected. We think these recent higher day rate contracts, which were also higher than our conservative case expectations, bode well for Atwood’s two remaining un-contracted UDW drill ships.

From FPA Capital Fund (Trades, Portfolio)’s Second Quarter 2014 Commentary.

Check out FPA Capital Fund latest stock trades

FPA Capital Comments on Atwood Oceanics - May 02, 2014

ATW (ATW) decreased almost 6% in the quarter as the market became increasingly concerned about the prices the company can charge to rent out its equipment to its customers. Atwood owns off-shore drilling rigs, some of which cost upwards of $600 million apiece to construct today. These $600 million rigs, typically very sophisticated drill ships, allow ATW's oil & gas exploration customers to drill in the ultra-deep waters (UDW) of the Gulf of Mexico, off the coast of western Africa, or in the deep waters of Brazil. These deep water basins, and other basins, hold the potential to extract over a hundred billion barrels of oil over the next few decades. However, these are very expensive and long-term projects, which not every oil company has access to or the capital to risk. Hence, ATW's drillships can potentially be rented out to a narrower group of customers than rigs for shallow water drilling (typically four-hundred feet of water depth), where the company's jack-up drilling rigs operate.



While there are a number of potentially large oil & gas reserves in the UDW, generally 7,500 feet of water or deeper, the timing of when these projects get started can be lumpy. Additionally, ATW is not the only drilling rig operator that sees this very large opportunity, so the company's competitors have also ordered new UDW drill ships. Thus, the market is concerned about a temporary supply and demand imbalance for UDW drill ships.



In our conservative analysis, we think UDW drill ship rental rates may fall from roughly $600,000/day, which is where day rates were in late 2013, to roughly $500,000 a day. In this downside scenario, ATW would earn close to $5.00 a share this year and over $7.00 a share in 2015 and 2016. This also assumes one of the company's semi-submersible rigs is idled later this year. With ATW trading in the mid $40s, we believe the risk-to-reward ratio warrants additional capital being deployed in the stock.



From FPA Capital's first quarter 2014 commentary.



Check out FPA Capital latest stock trades

Top Ranked Articles about Atwood Oceanics Inc

FPA Capital Fund Second Quarter 2014 Commentary
Introduction Read more...
FPA Capital Fund Comments on Atwood Oceanics
We added to a number of existing positions in the quarter and started one new position, which is too small of a position to talk about at this point. Among the stocks that we added to in the quarter were Atwood Oceanics (ATW) and Titan International (TWI). Read more...
Investor Arnold Van Den Berg's Top 5 New Second-Quarter Stocks
Arnold Van Den Berg (Trades, Portfolio), founder of Century Management, told investors at the 11th Annual Value Investor Conference in Omaha, Nebraska in May that he was greatly concerned about the economic consequences of ending quantitative easing. He envisioned that it could be “a repeat of the 1970s” due to the risk of inflation and multiple declines. Even if this happens, he still has faith in U.S. investing. Read more...
FPA Capital Comments on Atwood Oceanics
ATW (ATW) decreased almost 6% in the quarter as the market became increasingly concerned about the prices the company can charge to rent out its equipment to its customers. Atwood owns off-shore drilling rigs, some of which cost upwards of $600 million apiece to construct today. These $600 million rigs, typically very sophisticated drill ships, allow ATW's oil & gas exploration customers to drill in the ultra-deep waters (UDW) of the Gulf of Mexico, off the coast of western Africa, or in the deep waters of Brazil. These deep water basins, and other basins, hold the potential to extract over a hundred billion barrels of oil over the next few decades. However, these are very expensive and long-term projects, which not every oil company has access to or the capital to risk. Hence, ATW's drillships can potentially be rented out to a narrower group of customers than rigs for shallow water drilling (typically four-hundred feet of water depth), where the company's jack-up drilling rigs operate. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 5.60
ATW's P/E(ttm) is ranked higher than
94% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. ATW: 5.60 )
ATW' s 10-Year P/E(ttm) Range
Min: 3.24   Max: 98.14
Current: 5.6

3.24
98.14
P/B 0.70
ATW's P/B is ranked higher than
75% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.70 vs. ATW: 0.70 )
ATW' s 10-Year P/B Range
Min: 0.68   Max: 5.09
Current: 0.7

0.68
5.09
P/S 1.60
ATW's P/S is ranked higher than
75% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.28 vs. ATW: 1.60 )
ATW' s 10-Year P/S Range
Min: 1.44   Max: 8.5
Current: 1.6

1.44
8.5
EV-to-EBIT 8.13
ATW's EV-to-EBIT is ranked higher than
89% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 22.16 vs. ATW: 8.13 )
ATW' s 10-Year EV-to-EBIT Range
Min: 3   Max: 83.2
Current: 8.13

3
83.2
PEG 0.39
ATW's PEG is ranked higher than
95% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. ATW: 0.39 )
ATW' s 10-Year PEG Range
Min: 0.06   Max: 12.91
Current: 0.39

0.06
12.91
Shiller P/E 6.30
ATW's Shiller P/E is ranked higher than
96% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. ATW: 6.30 )
ATW' s 10-Year Shiller P/E Range
Min: 5.86   Max: 80
Current: 6.3

5.86
80
Current Ratio 2.97
ATW's Current Ratio is ranked higher than
91% of the 205 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.57 vs. ATW: 2.97 )
ATW' s 10-Year Current Ratio Range
Min: 1.52   Max: 5.12
Current: 2.97

1.52
5.12
Quick Ratio 2.18
ATW's Quick Ratio is ranked higher than
86% of the 205 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.48 vs. ATW: 2.18 )
ATW' s 10-Year Quick Ratio Range
Min: 1.27   Max: 4.49
Current: 2.18

1.27
4.49

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.74
ATW's Price/Tangible Book is ranked higher than
81% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.81 vs. ATW: 0.74 )
ATW' s 10-Year Price/Tangible Book Range
Min: 1.11   Max: 6.17
Current: 0.74

1.11
6.17
Price/Median PS Value 0.40
ATW's Price/Median PS Value is ranked higher than
83% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.59 vs. ATW: 0.40 )
ATW' s 10-Year Price/Median PS Value Range
Min: 0.47   Max: 2.11
Current: 0.4

0.47
2.11
Price/Peter Lynch Fair Value 0.42
ATW's Price/Peter Lynch Fair Value is ranked higher than
96% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. ATW: 0.42 )
ATW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.31   Max: 2.05
Current: 0.42

0.31
2.05
Price/Graham Number 0.42
ATW's Price/Graham Number is ranked higher than
93% of the 224 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. ATW: 0.42 )
ATW' s 10-Year Price/Graham Number Range
Min: 0.64   Max: 3.66
Current: 0.42

0.64
3.66
Earnings Yield (Greenblatt) 12.30
ATW's Earnings Yield (Greenblatt) is ranked higher than
88% of the 204 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.70 vs. ATW: 12.30 )
ATW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.2   Max: 33.3
Current: 12.3

1.2
33.3
Forward Rate of Return (Yacktman) -1.63
ATW's Forward Rate of Return (Yacktman) is ranked higher than
78% of the 96 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.54 vs. ATW: -1.63 )
ATW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -20.3   Max: 50.5
Current: -1.63

-20.3
50.5

Analyst Estimate

Sep15 Sep16
Revenue(Mil) 1,386 1,483
EPS($) 6.57 4.68
EPS without NRI($) 6.57 4.68

Business Description

Industry: Oil & Gas - Drilling » Oil & Gas Drilling
Compare:SDRL, ESV, PES, OMVJF, SBR » details
Traded in other countries:AWZ.Germany,
Atwood Oceanics, Inc., was organized in 1968 as a Texas corporation and commenced operations in 1970. It is headquartered in Houston, Texas with support offices in Australia, Malaysia, Singapore and the United Kingdom. The Company is an offshore drilling contractor, engaged in drilling and completion of exploratory and developmental oil and gas wells. It owns 13 mobile offshore drilling units located in the U.S. Gulf of Mexico, the Mediterranean Sea, offshore West Africa, offshore Southeast Asia and offshore Australia, is constructing three ultra-deepwater drillships. Its various types of drilling rigs are Ultra-Deep-water Drill-ships, Semisubmersible Rigs, Semisubmersible Tender Assist Rigs and Jack-up Drilling Rigs. The Ultra-Deepwater Drillships are self-propelled vessels, shaped like conventional ships, and are mobile of the major rig types. Semisubmersible rigs have two hulls, the lower of which is capable of being flooded. Semisubmersible tender assist rigs operate similar to semisubmersible rigs except that their drilling equipment is temporarily installed on permanently constructed offshore support platforms. A jack-up drilling rig consists of a single hull supported by at least three legs positioned on the sea floor. It is typically towed to the well site and once on location, its legs are lowered to the sea floor and the unit is raised out of the water by jacking the hull up the legs. It competes with several international offshore drilling contractors. Its competitors include Diamond Offshore Drilling, Inc., Ensco PLC, Noble Corporation, Rowan Companies PLC, Seadrill Limited, and Transocean Ltd. It complies with extensive government regulation in the form of international conventions, federal, state and local laws and regulations in jurisdictions where its vessels operate and are registered. The Company is subject to changing tax laws, treaties and regulations in and between countries in which it operates.
» More Articles for ATW

Headlines

Articles On GuruFocus.com

More From Other Websites
Atwood Oceanics, Inc. -- Moody's changes Atwood's outlook to stable, affirms Ba2 CFR Dec 16 2014
No, It's Not Time to Buy the Offshore Drillers Dec 03 2014
ATWOOD OCEANICS INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits Dec 01 2014
After Seadrill, Who's Next? Nov 26 2014
ATWOOD OCEANICS INC Financials Nov 21 2014
This Offshore Drilling Stock May Thrive Despite Falling Oil Prices Nov 20 2014
10-K for Atwood Oceanics, Inc. Nov 15 2014
ATWOOD OCEANICS INC Files SEC form 10-K, Annual Report Nov 13 2014
Atwood Oceanics Announces 2014 Fourth Quarter and Fiscal Year End Earnings Nov 13 2014
ATWOOD OCEANICS TO PRESENT AT THE JEFFERIES 2014 ENERGY CONFERENCE Nov 13 2014
Atwood Oceanics Announces Fourth Quarter and Fiscal Year End Earnings Conference Call Nov 13 2014
Atwood Oceanics (ATW) Stock Is Gaining in After-Hours Trading Today Nov 10 2014
Atwood Oceanics beats Street 4Q forecasts Nov 10 2014
Atwood Oceanics beats Street 4Q forecasts Nov 10 2014
ATWOOD OCEANICS INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial... Nov 10 2014
Atwood Oceanics Announces 2014 Fourth Quarter and Fiscal Year End Earnings Nov 10 2014
ATWOOD OCEANICS TO PRESENT AT THE JEFFERIES 2014 ENERGY CONFERENCE Nov 10 2014
Q4 2014 Atwood Oceanics Inc Earnings Release - After Market Close Nov 10 2014
Offshore Drillers: Falling Oil Prices, Declining Capex to Keep the Pressure On Nov 04 2014
Atwood (ATW) in Focus: Stock Falls 5.9% Nov 04 2014

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK