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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 : 7/10

vs
industry
vs
history
Cash to Debt 0.12
RDC's Cash to Debt is ranked higher than
75% of the 189 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.28 vs. RDC: 0.12 )
RDC' s 10-Year Cash to Debt Range
Min: 0.09   Max: 1.1
Current: 0.12

0.09
1.1
Equity to Asset 0.56
RDC's Equity to Asset is ranked higher than
84% of the 179 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.52 vs. RDC: 0.56 )
RDC' s 10-Year Equity to Asset Range
Min: 0.52   Max: 0.66
Current: 0.56

0.52
0.66
F-Score: 5
Z-Score: 1.25
M-Score: -2.35
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 : 4/10

vs
industry
vs
history
Operating margin (%) -10.76
RDC's Operating margin (%) is ranked higher than
86% of the 181 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 6.27 vs. RDC: -10.76 )
RDC' s 10-Year Operating margin (%) Range
Min: -9.14   Max: 37.17
Current: -10.76

-9.14
37.17
Net-margin (%) -7.52
RDC's Net-margin (%) is ranked higher than
92% of the 181 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.51 vs. RDC: -7.52 )
RDC' s 10-Year Net-margin (%) Range
Min: -6.3   Max: 78.45
Current: -7.52

-6.3
78.45
ROE (%) -2.83
RDC's ROE (%) is ranked higher than
82% of the 192 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 3.87 vs. RDC: -2.83 )
RDC' s 10-Year ROE (%) Range
Min: -2.53   Max: 25.51
Current: -2.83

-2.53
25.51
ROA (%) -1.63
RDC's ROA (%) is ranked higher than
83% of the 197 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.62 vs. RDC: -1.63 )
RDC' s 10-Year ROA (%) Range
Min: -1.47   Max: 14.5
Current: -1.63

-1.47
14.5
ROC (Joel Greenblatt) (%) -2.75
RDC's ROC (Joel Greenblatt) (%) is ranked higher than
79% of the 197 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.52 vs. RDC: -2.75 )
RDC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.47   Max: 25.05
Current: -2.75

-2.47
25.05
Revenue Growth (3Y)(%) 27.80
RDC's Revenue Growth (3Y)(%) is ranked higher than
65% of the 123 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 8.70 vs. RDC: 27.80 )
RDC' s 10-Year Revenue Growth (3Y)(%) Range
Min: -26.6   Max: 47.7
Current: 27.8

-26.6
47.7
EBITDA Growth (3Y)(%) -21.90
RDC's EBITDA Growth (3Y)(%) is ranked higher than
72% of the 111 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.20 vs. RDC: -21.90 )
RDC' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -26.9   Max: 79.2
Current: -21.9

-26.9
79.2
» RDC's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2014

RDC Guru Trades in Q1 2014

Jim Simons 102,800 sh (New)
Louis Moore Bacon 47,438 sh (New)
Richard Pzena 128,496 sh (New)
First Pacific Advisors 4,387,200 sh (+4.47%)
FPA Capital Fund 2,065,700 sh (unchged)
Chuck Royce Sold Out
Mario Gabelli 660,250 sh (-4.51%)
Paul Tudor Jones 8,632 sh (-40.36%)
Columbia Wanger 1,607,573 sh (-42.56%)
Steven Cohen 18,354 sh (-98.24%)
» More
Q2 2014

RDC Guru Trades in Q2 2014

RS Investment Management 402,228 sh (New)
Paul Tudor Jones 32,521 sh (+276.75%)
Richard Pzena 355,650 sh (+176.78%)
Jim Simons 209,400 sh (+103.7%)
First Pacific Advisors 4,701,000 sh (+7.15%)
FPA Capital Fund 2,119,700 sh (+2.61%)
Steven Cohen 50 sh (unchged)
Louis Moore Bacon Sold Out
Mario Gabelli 619,350 sh (-6.19%)
Columbia Wanger 1,412,764 sh (-12.12%)
» More
Q3 2014

RDC Guru Trades in Q3 2014

Ray Dalio 75,863 sh (New)
HOTCHKIS & WILEY 1,405,499 sh (New)
George Soros 1,201,011 sh (New)
Steven Cohen 540,500 sh (+1080900%)
Richard Pzena 628,825 sh (+76.81%)
RS Investment Management 625,980 sh (+55.63%)
First Pacific Advisors 5,362,200 sh (+14.07%)
FPA Capital Fund 2,360,300 sh (+11.35%)
Mario Gabelli 619,907 sh (+0.09%)
Columbia Wanger 1,412,764 sh (unchged)
George Soros 540,000 sh (unchged)
Louis Moore Bacon 300,000 sh (unchged)
Jim Simons Sold Out
Paul Tudor Jones 25,584 sh (-21.33%)
» More
Q4 2014

RDC Guru Trades in Q4 2014

Steven Cohen 2,305,900 sh (+326.62%)
HOTCHKIS & WILEY 2,622,699 sh (+86.6%)
RS Investment Management 733,170 sh (+17.12%)
Richard Pzena 730,525 sh (+16.17%)
First Pacific Advisors 6,102,500 sh (+13.81%)
FPA Capital Fund 2,678,900 sh (+13.5%)
Paul Tudor Jones Sold Out
George Soros Sold Out
Ray Dalio Sold Out
Columbia Wanger 1,405,066 sh (-0.54%)
Mario Gabelli 545,171 sh (-12.06%)
» More
» Details

Insider Trades

Latest Guru Trades with RDC

(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
FPA Capital Fund 2014-12-31 Add 13.5%0.84%$19.81 - $24.86 $ 20.55-11%2678900
George Soros 2014-12-31 Sold Out 0.23%$19.81 - $24.86 $ 20.55-11%0
HOTCHKIS & WILEY 2014-12-31 Add 86.6%0.1%$19.81 - $24.86 $ 20.55-11%2622699
Ray Dalio 2014-12-31 Sold Out 0.02%$19.81 - $24.86 $ 20.55-11%0
FPA Capital Fund 2014-09-30 Add 11.35%0.66%$25.22 - $31.97 $ 20.55-30%2360300
George Soros 2014-09-30 New Buy0.23%$25.22 - $31.97 $ 20.55-30%1201011
HOTCHKIS & WILEY 2014-09-30 New Buy0.13%$25.22 - $31.97 $ 20.55-30%1405499
Richard Pzena 2014-09-30 Add 76.81%0.04%$25.22 - $31.97 $ 20.55-30%628825
Ray Dalio 2014-09-30 New Buy0.02%$25.22 - $31.97 $ 20.55-30%75863
FPA Capital Fund 2014-06-30 Add 2.61%0.17%$29.64 - $33.38 $ 20.55-34%2119700
Richard Pzena 2014-06-30 Add 176.78%0.04%$29.64 - $33.38 $ 20.55-34%355650
Richard Pzena 2014-03-31 New Buy0.03%$31.31 - $35.36 $ 20.55-37%128496
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Rowan Companies PLC

FPA Capital Fund Comments on Rowan Companies - Oct 28, 2014

Let us now discuss some of our energy investments. Rowan Companies (RDC) is an off-shore drilling rig owner and operator. RDC provides offshore oil and gas contract drilling services utilizing a fleet of 30 self- elevating mobile offshore “jack-up” drilling units and four ultra-deepwater drillships, two of which are currently under construction. Until this year, Rowan focused on high-specification and premium jack-up rigs, which its customers use for exploratory and development oil & gas drilling. A couple of years ago, RDC signed contracts with Hyundai Heavy Industries for the construction of four ultra-deepwater drillships. In January 2014, the company took delivery of the first of these drillships, the Rowan Renaissance. The Renaissance commenced drilling operations under a three-year contract in the deep waters off the coast of West Africa in April 2014. The last of the four new drillships will be delivered in March of 2015, and all four of the new ships are under firm, multi-year contracts.

With the acceptance of the fourth drillship next March, RDC will have among the youngest fleet of ultra- deepwater (UDW) drillships and high-spec Jackup rigs in the market. This is an important factor because oil & gas exploration & production companies will likely migrate to the youngest and best possible rig for a given job, should oil prices continue to decline or even stabilize around the $80/barrel level.

Rowan’s young fleet is outfitted with some of the most advanced and safest equipment of any offshore rig. For example, all four of RDC’s new UDW drillships come with dual blow-out preventers, which could have helped prevent the horrific Deepwater Horizon accident in the Gulf of Mexico in 2010. Additionally, the drillships will be self-propelled vessels equipped with computer-controlled dynamic-positioning thruster systems, which allow them to maintain position without anchors through the use of their onboard propulsion and station-keeping systems.

Despite the decline in Rowan’s stock price over the past few months, our earnings expectations, as well as Wall Street’s analysts who follow the company, point to higher EPS over the next couple of years. For instance, the consensus EPS estimate for this year is $2.16, but that increases to $3.93 and $4.09, respectively, for 2015 and 2016. Furthermore, Rowan has roughly 76% and 68%, respectively, of its 2015 and 2016 revenue expectations under firm contract. As a side note, Ensco has roughly 75% and 51%, respectively, of its 2015 and 2016 revenues under contract. Atwood has 92% and 71%, respectively, of its 2015 and 2016 revenues under contract.

Current market sentiment toward energy companies, particularly to offshore rig companies, is obviously very negative. However, when the average small-mid-cap stock trades at roughly 30x earnings, we would rather allocate capital to companies like RDC which we believe is trading at close to 5x each of the next two year’s earnings expectations. Even if we are wrong and RDC earns $3.00 in 2016, the stock trades at nearly 7x earnings. In our opinion, RDC’s earning power is greater than $3.00.

From FPA Capital Fund (Trades, Portfolio) Q3 2014 Commentary.

Check out FPA Capital Fund latest stock trades

Top Ranked Articles about Rowan Companies PLC

FPA Capital Fund Comments on Rowan Companies
Let us now discuss some of our energy investments. Rowan Companies (RDC) is an off-shore drilling rig owner and operator. RDC provides offshore oil and gas contract drilling services utilizing a fleet of 30 self- elevating mobile offshore “jack-up” drilling units and four ultra-deepwater drillships, two of which are currently under construction. Until this year, Rowan focused on high-specification and premium jack-up rigs, which its customers use for exploratory and development oil & gas drilling. A couple of years ago, RDC signed contracts with Hyundai Heavy Industries for the construction of four ultra-deepwater drillships. In January 2014, the company took delivery of the first of these drillships, the Rowan Renaissance. The Renaissance commenced drilling operations under a three-year contract in the deep waters off the coast of West Africa in April 2014. The last of the four new drillships will be delivered in March of 2015, and all four of the new ships are under firm, multi-year contracts. Read more...

Ratios

vs
industry
vs
history
Forward P/E 7.81
RDC's Forward P/E is ranked higher than
92% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 60.98 vs. RDC: 7.81 )
N/A
P/B 0.70
RDC's P/B is ranked higher than
80% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.67 vs. RDC: 0.70 )
RDC' s 10-Year P/B Range
Min: 0.46   Max: 3.04
Current: 0.7

0.46
3.04
P/S 1.80
RDC's P/S is ranked higher than
73% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.13 vs. RDC: 1.80 )
RDC' s 10-Year P/S Range
Min: 0.62   Max: 5.35
Current: 1.8

0.62
5.35
POCF 7.82
RDC's POCF is ranked higher than
74% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 3.91 vs. RDC: 7.82 )
RDC' s 10-Year POCF Range
Min: 2.02   Max: 109.7
Current: 7.82

2.02
109.7
EV-to-EBIT -25.78
RDC's EV-to-EBIT is ranked higher than
80% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 22.47 vs. RDC: -25.78 )
RDC' s 10-Year EV-to-EBIT Range
Min: -30.6   Max: 97.8
Current: -25.78

-30.6
97.8
Shiller P/E 11.60
RDC's Shiller P/E is ranked higher than
93% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.00 vs. RDC: 11.60 )
RDC' s 10-Year Shiller P/E Range
Min: 4.8   Max: 51.61
Current: 11.6

4.8
51.61
Current Ratio 2.82
RDC's Current Ratio is ranked higher than
95% of the 197 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.57 vs. RDC: 2.82 )
RDC' s 10-Year Current Ratio Range
Min: 1.61   Max: 5.28
Current: 2.82

1.61
5.28
Quick Ratio 2.82
RDC's Quick Ratio is ranked higher than
95% of the 197 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.48 vs. RDC: 2.82 )
RDC' s 10-Year Quick Ratio Range
Min: 1.01   Max: 5.28
Current: 2.82

1.01
5.28
Days Sales Outstanding 111.10
RDC's Days Sales Outstanding is ranked higher than
73% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 80.42 vs. RDC: 111.10 )
RDC' s 10-Year Days Sales Outstanding Range
Min: 41.9   Max: 149.88
Current: 111.1

41.9
149.88

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.00
RDC's Dividend Yield is ranked lower than
83% of the 94 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.84 vs. RDC: 2.00 )
RDC' s 10-Year Dividend Yield Range
Min: 0.31   Max: 1.46
Current: 2

0.31
1.46
Dividend Payout 0.10
RDC's Dividend Payout is ranked higher than
98% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.00 vs. RDC: 0.10 )
RDC' s 10-Year Dividend Payout Range
Min: 0   Max: 0
Current: 0.1

Yield on cost (5-Year) 2.00
RDC's Yield on cost (5-Year) is ranked lower than
84% of the 97 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 6.74 vs. RDC: 2.00 )
RDC' s 10-Year Yield on cost (5-Year) Range
Min: 0.31   Max: 1.46
Current: 2

0.31
1.46
Share Buyback Rate 0.30
RDC's Share Buyback Rate is ranked higher than
84% of the 131 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -5.70 vs. RDC: 0.30 )
RDC' s 10-Year Share Buyback Rate Range
Min: 4.1   Max: -9.8
Current: 0.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.70
RDC's Price/Tangible Book is ranked higher than
84% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.77 vs. RDC: 0.70 )
RDC' s 10-Year Price/Tangible Book Range
Min: 0.55   Max: 2.96
Current: 0.7

0.55
2.96
Price/Median PS Value 0.70
RDC's Price/Median PS Value is ranked higher than
71% of the 217 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.56 vs. RDC: 0.70 )
RDC' s 10-Year Price/Median PS Value Range
Min: 0.32   Max: 1.66
Current: 0.7

0.32
1.66
Earnings Yield (Greenblatt) -4.00
RDC's Earnings Yield (Greenblatt) is ranked higher than
79% of the 198 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.60 vs. RDC: -4.00 )
RDC' s 10-Year Earnings Yield (Greenblatt) Range
Min: -4   Max: 43.7
Current: -4

-4
43.7
Forward Rate of Return (Yacktman) -24.03
RDC's Forward Rate of Return (Yacktman) is ranked higher than
69% of the 94 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.38 vs. RDC: -24.03 )
RDC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -27.3   Max: 68.9
Current: -24.03

-27.3
68.9

Business Description

Industry: Oil & Gas - Drilling » Oil & Gas Drilling
Compare:SDRL, ESV, PES, OMVJF, SBR » details
Traded in other countries:RC0.Germany,
Rowan Companies PLC was incorporated under the laws of England and Wales on May 4, 2012. The Company provides offshore oil and gas contract drilling services utilizing a fleet of 30 self-elevating mobile offshore "jack-up" drilling units and four ultra-deepwater drillships. The Company conducts offshore drilling operations in various markets throughout the world including the United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East, the United States Gulf of Mexico (US GOM), Southeast Asia, West Africa, Trinidad and Egypt. The Company owns and operates 30 jack-up rigs and one ultra-deepwater drillship, with three additional drillships under construction. It market its drilling services to present and potential customers, including large international energy companies, smaller independent energy companies and foreign government-owned or government-controlled energy companies. It competes with several offshore drilling contractors that together have 829 mobile rigs available worldwide, including 513 jack-ups. In the U.K., the U.S. and other countries in which it operates have regulations relating to environmental protection and pollution control.
» More Articles for RDC

Headlines

Articles On GuruFocus.com
Kill My Thesis: RDC Dec 05 2014 
Rowan Companies: A Potential Long-Term Value Creator Nov 17 2014 
FPA Capital Fund Comments on Rowan Companies Oct 28 2014 
FPA Capital Fund Q3 2014 Commentary Oct 28 2014 
FPA Capital Fund's Q3 2013 Shareholder Letter Oct 28 2014 
Steven Romick's FPA Capital Q3 Commentary Oct 25 2014 
Weekly 3-Year Low Highlights: RDC, EXXI, RP, BGC, SLRC Aug 17 2014 
First Pacific Advisors Reports Second Quarter Top Holdings Jul 14 2014 
First Pacific Advisors' First Quarter Top Five Holdings Apr 18 2014 
Gurus Confirm Analysts’ Opinions on Rowan Companies Apr 01 2014 

More From Our Partners
Company News for March 02, 2015 - Corporate Summary Mar 2 2015 - ZACKS

More From Other Websites
ROWAN COMPANIES PLC Files SEC form 8-K, Change in Directors or Principal Officers Mar 04 2015
ROWAN COMPANIES PLC Files SEC form 10-K, Annual Report Mar 02 2015
Company News for March 02, 2015 - Corporate Summary Mar 02 2015
Rowan Cos. (RDC) Stock Rallies Today as Rig Deal Expected Feb 27 2015
Rowan Companies Earnings Miss, Revenues Beat in Q4 - Analyst Blog Feb 27 2015
Rowan says expects Saudi Aramco to keep employing its rigs Feb 27 2015
Rowan Companies plc Earnings Call scheduled for 11:00 am ET today Feb 27 2015
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Rowan Reports Fourth Quarter and Full-Year 2014 Results Feb 27 2015
Driller Rowan reports quarterly loss on impairment charge Feb 27 2015
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Rowan Reports Fourth Quarter and Full-Year 2014 Results Feb 27 2015
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Weakness Seen in Rowan Companies (RDC): Stock Falls 6% - Tale of the Tape Feb 26 2015
Rowan Provides Fleet Contract Status Update Feb 19 2015
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