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64.02 (1y: +32%)
Market Cap 14.82 B P/E(ttm) 12.60
Enterprise Value 18.6 B P/B 1.20
ESV- NYSE (USA)
Ensco PLC
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$64.02
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GuruFocus Financial Strength Rank measures how strong a companyÂ’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 : 4/10

vs
industry		 vs
history
Cash to Debt 0.101
ESV's Cash to Debt is ranked lower than
76% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.35 vs. ESV: 0.101 )
ESV' s 10-Year Cash to Debt Range
Min: 0.09   Max: 4.16
Current: 0.1
0.09
4.16
Equity to Asset 0.462
ESV's Equity to Asset is ranked lower than
60% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.51 vs. ESV: 0.462 )
ESV' s 10-Year Equity to Asset Range
Min: 0.41   Max: 0.8
Current: 0.46
0.41
0.8
Interest Coverage 15.5
ESV's Interest Coverage is ranked higher than
67% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.40 vs. ESV: 15.5 )
ESV' s 10-Year Interest Coverage Range
Min: 1   Max: No Debt
Current: 15.5
F-Score: 7
Z-Score: 2.29
M-Score: -2.76
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyÂ’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 : 6/10

vs
industry		 vs
history
Operating margin (%) 36.40
ESV's Operating margin (%) is ranked higher than
87% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.65 vs. ESV: 36.40 )
ESV' s 10-Year Operating margin (%) Range
Min: 1   Max: 57.4
Current: 36.4
1
57.4
Net-margin (%) 27.2
ESV's Net-margin (%) is ranked higher than
87% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.80 vs. ESV: 27.2 )
ESV' s 10-Year Net-margin (%) Range
Min: 1.8   Max: 47.7
Current: 27.2
1.8
47.7
ROE (%) 9.9
ESV's ROE (%) is ranked higher than
75% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.80 vs. ESV: 9.9 )
ESV' s 10-Year ROE (%) Range
Min: 0.5   Max: 26.4
Current: 9.9
0.5
26.4
ROA (%) 6.3
ESV's ROA (%) is ranked higher than
78% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 2.80 vs. ESV: 6.3 )
ESV' s 10-Year ROA (%) Range
Min: 0.3   Max: 20.1
Current: 6.3
0.3
20.1
ROC (Joel Greenblatt) (%) 11.60
ESV's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.80 vs. ESV: 11.60 )
ESV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 0.2   Max: 36
Current: 11.6
0.2
36
Revenue Growth (%) 7.8
ESV's Revenue Growth (%) is ranked higher than
63% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -3.40 vs. ESV: 7.8 )
ESV' s 10-Year Revenue Growth (%) Range
Min: -4.6   Max: 30
Current: 7.8
-4.6
30
EBITDA Growth (%) 2
ESV's EBITDA Growth (%) is ranked higher than
64% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -1.25 vs. ESV: 2 )
ESV' s 10-Year EBITDA Growth (%) Range
Min: -14.7   Max: 45.4
Current: 2
-14.7
45.4
EPS Growth (%) -2.1
ESV's EPS Growth (%) is ranked higher than
63% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -5.60 vs. ESV: -2.1 )
ESV' s 10-Year EPS Growth (%) Range
Min: -21.5   Max: 77.4
Current: -2.1
-21.5
77.4
» ESV's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

ESV Guru Trades in Q2 2012

George Soros 233,500 sh (New)
Paul Tudor Jones 348,800 sh (New)
Steven Cohen 6,024,758 sh (+18.53%)
Pioneer Investments 2,810,761 sh (+4.38%)
Steven Romick 3,590,000 sh (+2.6%)
First Pacific Advisors 7,210,077 sh (+1.72%)
David Dreman 56,857 sh (+1.08%)
PRIMECAP Management 200,507 sh (unchged)
Robert Rodriguez 1,650,800 sh (unchged)
John Hussman 2,500 sh (unchged)
Louis Moore Bacon Sold Out
David Einhorn 3,795,665 sh (-1.22%)
Ken Fisher 7,125 sh (-50.5%)
Chuck Royce 98,950 sh (-65.13%)
» More
Q3 2012

ESV Guru Trades in Q3 2012

Signature Select Canadian Fund 68,000 sh (New)
Scott Black 12,890 sh (New)
Pioneer Investments 3,891,102 sh (+38.44%)
David Dreman 56,947 sh (+0.16%)
David Einhorn 3,795,665 sh (unchged)
John Hussman 2,500 sh (unchged)
PRIMECAP Management 200,507 sh (unchged)
Steven Cohen Sold Out
George Soros Sold Out
Ken Fisher Sold Out
Robert Rodriguez 1,451,700 sh (-12.06%)
First Pacific Advisors 5,734,177 sh (-20.47%)
Steven Romick 2,530,000 sh (-29.53%)
Paul Tudor Jones 175,000 sh (-49.83%)
Chuck Royce 46,900 sh (-52.6%)
» More
Q4 2012

ESV Guru Trades in Q4 2012

David Tepper 721,149 sh (New)
Scott Black 107,950 sh (+737.47%)
Chuck Royce 60,900 sh (+29.85%)
John Hussman 2,500 sh (unchged)
David Einhorn 3,795,665 sh (unchged)
Paul Tudor Jones Sold Out
David Dreman 56,483 sh (-0.81%)
Pioneer Investments 3,323,820 sh (-14.58%)
Robert Rodriguez 1,203,200 sh (-17.12%)
First Pacific Advisors 4,416,477 sh (-22.98%)
PRIMECAP Management 150,507 sh (-24.94%)
Steven Romick 1,633,400 sh (-35.44%)
» More
Q1 2013

ESV Guru Trades in Q1 2013

Steven Cohen 486,900 sh (New)
Paul Tudor Jones 95,000 sh (New)
Louis Moore Bacon 75,000 sh (New)
George Soros 62,894 sh (New)
Jim Simons 322,622 sh (New)
Ron Baron 1,175 sh (New)
John Hussman 5,500 sh (+120%)
Chuck Royce 110,300 sh (+81.12%)
PRIMECAP Management 150,507 sh (unchged)
David Tepper Sold Out
David Einhorn Sold Out
David Dreman 53,870 sh (-4.63%)
Pioneer Investments 2,543,713 sh (-23.47%)
Robert Rodriguez 842,600 sh (-29.97%)
First Pacific Advisors 2,452,000 sh (-44.48%)
Steven Romick 470,000 sh (-71.23%)
» More
» Details

Insider Trades

Latest Guru Trades with ESV

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Robert Rodriguez 2013-03-31 Reduce -29.97%2.58%$57.08 - $65.45 $ 64.025%842600
George Soros 2013-03-31 New Buy0.04%$57.08 - $65.45 $ 64.025%62894
John Hussman 2013-03-31 Add 120%0.01%$57.08 - $65.45 $ 64.025%5500
Ron Baron 2013-03-31 New Buy$57.08 - $65.45 $ 64.025%1175
Robert Rodriguez 2012-12-31 Reduce -17.12%1.63%$53.71 - $60.33 $ 64.0212%1203200
Scott Black 2012-12-31 Add 737.47%0.83%$53.71 - $60.33 $ 64.0212%107950
PRIMECAP Management 2012-12-31 Reduce -24.94%$53.71 - $60.33 $ 64.0212%150507
George Soros 2012-09-30 Sold Out 0.16%$46.24 - $58.71 $ 64.0219%0
Scott Black 2012-09-30 New Buy0.1%$46.24 - $58.71 $ 64.0219%12890
George Soros 2012-06-30 New Buy0.16%$42.69 - $54.8 $ 64.0231%233500
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Ensco PLC

Steve Romick Comments on Ensco - Oct 30, 2012

Ensco (ESV)10 Whereas Walmart is an example of a type of "compounder" we like to buy, Ensco is an example of a "3:1" - a purchase we make when we believe the potential upside is 3x larger than the potential downside. We haveowned Ensco for a number of years, and it has also been discussed in the past, along with our investments in other oil service companies. 11 Ensco is an average business with no long-term competitive advantages. It seems that to effectively compete, a rig company only requires capital and a contract with an Asian shipyard. Such ease of market entry convinces us that a company that builds a rig and then leases it should not expect to earn more than a 10% to 12% long-term return on capital. In a tight market, demand exceeds the number of rigs available, and return on capital rises above the long-term average. At such times, one generally expects to see new orders for rigs. As those rigs come to market a few years down the road, day rates, and thus returns on capital, decline.

Earnings at Ensco and other oil service companies are currently above our expectations for normal returns on capital due to a shortage of available rigs. Capital and time will correct that. Currently, there are lots of rigs under construction. In 2013, 35 new jackup rigs will be built and delivered, an increase of 8% to the current worldwide fleet of 426. Additionally, 21 new floater rigs will be built and delivered, an increase of 7%
to the current worldwide floater fleet of 295. Worldwide oil consumption & production grows at about 1% per year so we believe this level of growth in the offshore rig fleet will ultimately reduce profitability and returns.

We have reduced our position in Ensco and other oil service companies, albeit with the recognition that this period of "excess" earnings can continue for quite some time if the price of oil remains high.

Our goal when investing in commodity businesses is to 'buy assets and sell earnings.'

Capital intensive, cyclical businesses often trade at discounts to the value of the underlying assets when their respective industry is in distress (companies are either losing money or earning less than what 's expected in a more normal environment). When earnings rebound, the market seems to forget that the businesses a recyclical. Investors begin to value them on earnings as if another downturn isn't in the cards. Our average cost in Ensco reflects rigs purchased at a discount to a fully depreciated replacement value. Since then, its stock price has increased, along with day rates (and earnings). The company is now beginning to be considered more on a P/E basis, while at the same time, the value of the underlying rigs has begun to trade through the irreplacement value, reflecting the value of existing contracts and hope for a continued robust demand environment. As our margin of safety 12 has declined, we have reduced our exposure, consistent with our initial thesis and the manner in which we invest in such industries.

From Steven Romick's third quarter letter to investors.


Check out Steven Romick latest stock trades

Top Ranked Articles about Ensco PLC

FPA Crescent Fund Steven Romick's First Quarter Sells
April 11, 2013
Steven Romick - FPA Crescent Fund Steven Romick's First Quarter Sells
The "Great Investor" Steven Romick, Investment Officer of the First Pacific Advisor’s Crescent Fund, was actively selling in first quarter 2013. Romick’s Crescent Fund is currently valued at $6.1 billion and holds 57 stocks, two of them new. The fund has a quarter-over-quarter turnover of 2%. Guru Steven Romick is in the top 1% of money managers. Read more...
Steve Romick Comments on Ensco
October 30, 2012
Ensco (ESV)10 Whereas Walmart is an example of a type of "compounder" we like to buy, Ensco is an example of a "3:1" - a purchase we make when we believe the potential upside is 3x larger than the potential downside. We haveowned Ensco for a number of years, and it has also been discussed in the past, along with our investments in other oil service companies. 11 Ensco is an average business with no long-term competitive advantages. It seems that to effectively compete, a rig company only requires capital and a contract with an Asian shipyard. Such ease of market entry convinces us that a company that builds a rig and then leases it should not expect to earn more than a 10% to 12% long-term return on capital. In a tight market, demand exceeds the number of rigs available, and return on capital rises above the long-term average. At such times, one generally expects to see new orders for rigs. As those rigs come to market a few years down the road, day rates, and thus returns on capital, decline. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 12.60
ESV's P/E(ttm) is ranked higher than
69% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 12.95 vs. ESV: 12.60 )
ESV' s 10-Year P/E(ttm) Range
Min: 3.03   Max: 308.18
Current: 12.6
3.03
308.18
P/B 1.20
ESV's P/B is ranked lower than
51% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.20 vs. ESV: 1.20 )
ESV' s 10-Year P/B Range
Min: 0.68   Max: 4.47
Current: 1.2
0.68
4.47
P/S 3.32
ESV's P/S is ranked lower than
66% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.74 vs. ESV: 3.32 )
ESV' s 10-Year P/S Range
Min: 1.39   Max: 18.03
Current: 3.32
1.39
18.03
PFCF 38.30
ESV's PFCF is ranked lower than
70% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 15.74 vs. ESV: 38.30 )
ESV' s 10-Year PFCF Range
Min: 6.79   Max: 2585.5
Current: 38.3
6.79
2585.5
EV-to-EBIT 12
ESV's EV-to-EBIT is ranked higher than
69% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 11.60 vs. ESV: 12 )
ESV' s 10-Year EV-to-EBIT Range
Min: 1.9   Max: 717.4
Current: 12
1.9
717.4
Shiller P/E 11.2
ESV's Shiller P/E is ranked higher than
78% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 11.11 vs. ESV: 11.2 )
ESV' s 10-Year Shiller P/E Range
Min: 5.62   Max: 58.03
Current: 11.2
5.62
58.03

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 2.54
ESV's Dividend Yield is ranked higher than
82% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 2.49 vs. ESV: 2.54 )
ESV' s 10-Year Dividend Yield Range
Min: 0.12   Max: 3.46
Current: 2.54
0.12
3.46
Dividend Payout 0.2979
ESV's Dividend Payout is ranked higher than
94% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.45 vs. ESV: 0.2979 )
ESV' s 10-Year Dividend Payout Range
Min: 0.01   Max: 2.06
Current: 0.3
0.01
2.06
Dividend growth (3y) 96.8
ESV's Dividend growth (3y) is ranked higher than
99% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.00 vs. ESV: 96.8 )
ESV' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 96.8
Current: 96.8
0
96.8
Yield on cost (5-Year) 145.97
ESV's Yield on cost (5-Year) is ranked higher than
99% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 2.01 vs. ESV: 145.97 )
ESV' s 10-Year Yield on cost (5-Year) Range
Min: 6.74   Max: 194.26
Current: 145.97
6.74
194.26
Share Buyback Rate -13.1
ESV's Share Buyback Rate is ranked higher than
58% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -5.50 vs. ESV: -13.1 )
ESV' s 10-Year Share Buyback Rate Range
Min: 2.1   Max: -13.1
Current: -13.1

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 16.5
ESV's Price/Net Current Asset Value is ranked higher than
79% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 8.60 vs. ESV: 16.5 )
ESV' s 10-Year Price/Net Current Asset Value Range
Min: 11.2   Max: 46.8
Current: 16.5
11.2
46.8
Price/Tangible Book 1.7
ESV's Price/Tangible Book is ranked higher than
63% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.30 vs. ESV: 1.7 )
ESV' s 10-Year Price/Tangible Book Range
Min: 0.9   Max: 3.6
Current: 1.7
0.9
3.6
Price/DCF (Projected) 1.2
ESV's Price/DCF (Projected) is ranked higher than
75% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.40 vs. ESV: 1.2 )
ESV' s 10-Year Price/DCF (Projected) Range
Min: 0.5   Max: 3.1
Current: 1.2
0.5
3.1
Price/Median PS Value 0.8
ESV's Price/Median PS Value is ranked higher than
64% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.70 vs. ESV: 0.8 )
ESV' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 2
Current: 0.8
0.4
2
Price/Graham Number 1
ESV's Price/Graham Number is ranked higher than
72% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.90 vs. ESV: 1 )
ESV' s 10-Year Price/Graham Number Range
Min: 0.4   Max: 3
Current: 1
0.4
3
Earnings Yield (Greenblatt) 8.30
ESV's Earnings Yield (Greenblatt) is ranked higher than
70% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9.45 vs. ESV: 8.30 )
ESV' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 51.3
Current: 8.3
0.1
51.3
Forward Rate of Return (Yacktman) -8.4
ESV's Forward Rate of Return (Yacktman) is ranked higher than
78% of the 67 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -2.93 vs. ESV: -8.4 )
ESV' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -9.5   Max: 60.9
Current: -8.4
-9.5
60.9

Business Description

Ensco PLC was formed as a Texas corporation in 1975 and was reincorporated in Delaware in 1987. The Company is a global offshore contract drilling company. It is a provider of offshore contract drilling services to the international oil and gas industry. It owns and operates an offshore drilling rig fleet of 77 rigs, including rigs under construction, spanning most of the strategic, high-growth markets around the globe. Its rig fleet includes seven drillships, 13 dynamically positioned semisubmersible rigs, seven moored semisubmersible rigs, 49 jackup rigs and one barge rig. The Company currently has a technologically-advanced drillship, a semisubmersible rig and three ultra-premium harsh environment jackup rigs under construction as part of its ongoing strategy to continually expand and high-grade its fleet. The Company provides drilling services on a "day rate" contract basis. Under day rate contracts, it provides a drilling rig and rig crews and receives a fixed amount per day for drilling a well. The Company's business consist of three reportable segments: Deepwater, which consists of its drillships and semisubmersible rigs capable of drilling in water depths of 4,500 feet or greater; Midwater, which consists of its semisubmersible rigs capable of drilling in water depths of 4,499 feet or less; and Jackup, which consists of its jackup rigs capable of drilling in water depths up to 400 feet. The offshore contract drilling industry is competitive with numerous industry participants. The Company's operations are affected by political developments and by laws and regulations that relate directly to the oil and gas industry, including laws and regulations that have or may impose increased financial responsibility and oil spill abatement contingency plan capability requirements.
Company Website
Industry: Oil & Gas Drilling
Compare:SDRL, PES, OMVJF, SBR, OISHY
Traded in other countries:E65A.Germany

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