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 : 7/10

vs
industry
vs
history
Cash to Debt 0.25
RDC's Cash to Debt is ranked higher than
73% of the 193 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.28 vs. RDC: 0.25 )
RDC' s 10-Year Cash to Debt Range
Min: 0.08   Max: 1.1
Current: 0.25

0.08
1.1
Equity to Asset 0.58
RDC's Equity to Asset is ranked higher than
84% of the 178 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.52 vs. RDC: 0.58 )
RDC' s 10-Year Equity to Asset Range
Min: 0.52   Max: 0.66
Current: 0.58

0.52
0.66
Interest Coverage 4.75
RDC's Interest Coverage is ranked higher than
68% of the 129 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9.05 vs. RDC: 4.75 )
RDC' s 10-Year Interest Coverage Range
Min: 0.13   Max: 549.35
Current: 4.75

0.13
549.35
F-Score: 3
Z-Score: 1.53
M-Score: -2.92
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 (%) 18.47
RDC's Operating margin (%) is ranked higher than
84% of the 180 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9.18 vs. RDC: 18.47 )
RDC' s 10-Year Operating margin (%) Range
Min: -2.1   Max: 35.03
Current: 18.47

-2.1
35.03
Net-margin (%) 15.94
RDC's Net-margin (%) is ranked higher than
92% of the 180 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.50 vs. RDC: 15.94 )
RDC' s 10-Year Net-margin (%) Range
Min: -5.23   Max: 78.45
Current: 15.94

-5.23
78.45
ROE (%) 5.39
RDC's ROE (%) is ranked higher than
82% of the 195 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 3.83 vs. RDC: 5.39 )
RDC' s 10-Year ROE (%) Range
Min: -4.22   Max: 25.51
Current: 5.39

-4.22
25.51
ROA (%) 3.14
RDC's ROA (%) is ranked higher than
84% of the 201 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.60 vs. RDC: 3.14 )
RDC' s 10-Year ROA (%) Range
Min: -2.29   Max: 14.5
Current: 3.14

-2.29
14.5
ROC (Joel Greenblatt) (%) 4.39
RDC's ROC (Joel Greenblatt) (%) is ranked higher than
77% of the 199 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.50 vs. RDC: 4.39 )
RDC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -0.91   Max: 24.71
Current: 4.39

-0.91
24.71
Revenue Growth (%) -7.10
RDC's Revenue Growth (%) is ranked higher than
64% of the 138 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 11.50 vs. RDC: -7.10 )
RDC' s 10-Year Revenue Growth (%) Range
Min: -26.6   Max: 43.9
Current: -7.1

-26.6
43.9
EBITDA Growth (%) -2.00
RDC's EBITDA Growth (%) is ranked higher than
72% of the 127 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.70 vs. RDC: -2.00 )
RDC' s 10-Year EBITDA Growth (%) Range
Min: -28.3   Max: 77.8
Current: -2

-28.3
77.8
EPS Growth (%) -4.00
RDC's EPS Growth (%) is ranked higher than
73% of the 124 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 2.50 vs. RDC: -4.00 )
RDC' s 10-Year EPS Growth (%) Range
Min: -39.7   Max: 145.3
Current: -4

-39.7
145.3
» RDC's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

RDC Guru Trades in Q4 2013

Paul Tudor Jones 14,474 sh (New)
Steven Cohen 1,041,790 sh (+111.83%)
Chuck Royce 9,000 sh (unchged)
Columbia Wanger 2,798,899 sh (unchged)
FPA Capital Fund 2,065,700 sh (unchged)
Pioneer Investments Sold Out
Steven Romick Sold Out
John Burbank Sold Out
Mario Gabelli 691,400 sh (-2.26%)
First Pacific Advisors 4,199,500 sh (-23.94%)
» More
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)
George Soros 1,201,011 sh (New)
HOTCHKIS & WILEY 1,405,499 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%)
George Soros 540,000 sh (unchged)
Columbia Wanger 1,412,764 sh (unchged)
Louis Moore Bacon 300,000 sh (unchged)
Jim Simons Sold Out
Paul Tudor Jones 25,584 sh (-21.33%)
» 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 2014-09-30 Add 11.35%0.66%$25.22 - $31.97 $ 24.7-16%2360300
George Soros 2014-09-30 New Buy0.23%$25.22 - $31.97 $ 24.7-16%1201011
HOTCHKIS & WILEY 2014-09-30 New Buy0.13%$25.22 - $31.97 $ 24.7-16%1405499
Richard Pzena 2014-09-30 Add 76.81%0.04%$25.22 - $31.97 $ 24.7-16%628825
Ray Dalio 2014-09-30 New Buy0.02%$25.22 - $31.97 $ 24.7-16%75863
FPA Capital Fund 2014-06-30 Add 2.61%0.17%$29.64 - $33.38 $ 24.7-21%2119700
Richard Pzena 2014-06-30 Add 176.78%0.04%$29.64 - $33.38 $ 24.7-21%355650
Richard Pzena 2014-03-31 New Buy0.03%$31.31 - $35.36 $ 24.7-24%128496
John Burbank 2013-12-31 Sold Out 0.08%$32.94 - $37.73 $ 24.7-31%0
FPA Capital Fund 2013-09-30 Reduce -8.48%0.81%$33.97 - $38.3 $ 24.7-31%2065700
George Soros 2013-09-30 Sold Out 0.1%$33.97 - $38.3 $ 24.7-31%0
John Burbank 2013-09-30 New Buy0.08%$33.97 - $38.3 $ 24.7-31%63950
FPA Capital Fund 2013-06-30 Reduce -13.3%1.43%$30.5 - $36.31 $ 24.7-26%2257000
George Soros 2013-06-30 New Buy0.1%$30.5 - $36.31 $ 24.7-26%260000
John Burbank 2013-06-30 Sold Out 0.05%$30.5 - $36.31 $ 24.7-26%0
John Burbank 2013-03-31 Reduce -88.57%0.35%$31.27 - $36.65 $ 24.7-29%37900
John Burbank 2012-12-31 Add 97.79%0.2%$30.48 - $34.6 $ 24.7-24%331500
George Soros 2012-09-30 Sold Out 0.08%$32.38 - $37.32 $ 24.7-29%0
Ken Fisher 2012-06-30 Sold Out 0.19%$29.07 - $35.96 $ 24.7-22%0
John Burbank 2012-06-30 New Buy0.19%$29.07 - $35.96 $ 24.7-22%171377
Michael Price 2012-06-30 Sold Out 0.13%$29.07 - $35.96 $ 24.7-22%0
George Soros 2012-06-30 New Buy0.08%$29.07 - $35.96 $ 24.7-22%165200
Michael Price 2012-03-31 Reduce -90.85%1.36%$31.15 - $38.78 $ 24.7-25%27985
John Burbank 2012-03-31 Sold Out 0.09%$31.15 - $38.78 $ 24.7-25%0
Ken Fisher 2012-03-31 Add 50.67%0.06%$31.15 - $38.78 $ 24.7-25%2117526
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 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
P/E(ttm) 11.60
RDC's P/E(ttm) is ranked higher than
89% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. RDC: 11.60 )
RDC' s 10-Year P/E(ttm) Range
Min: 3.2   Max: 720.5
Current: 11.6

3.2
720.5
P/B 0.57
RDC's P/B is ranked higher than
91% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.89 vs. RDC: 0.57 )
RDC' s 10-Year P/B Range
Min: 0.49   Max: 3.19
Current: 0.57

0.49
3.19
P/S 1.86
RDC's P/S is ranked higher than
76% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.52 vs. RDC: 1.86 )
RDC' s 10-Year P/S Range
Min: 0.64   Max: 4.7
Current: 1.86

0.64
4.7
EV-to-EBIT 17.72
RDC's EV-to-EBIT is ranked higher than
82% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 25.29 vs. RDC: 17.72 )
RDC' s 10-Year EV-to-EBIT Range
Min: -4006.4   Max: 239.5
Current: 17.72

-4006.4
239.5
Shiller P/E 8.13
RDC's Shiller P/E is ranked higher than
95% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. RDC: 8.13 )
RDC' s 10-Year Shiller P/E Range
Min: 5.2   Max: 51.96
Current: 8.13

5.2
51.96
Current Ratio 4.96
RDC's Current Ratio is ranked higher than
94% of the 202 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.69 vs. RDC: 4.96 )
RDC' s 10-Year Current Ratio Range
Min: 1.61   Max: 6.53
Current: 4.96

1.61
6.53
Quick Ratio 4.96
RDC's Quick Ratio is ranked higher than
94% of the 202 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.50 vs. RDC: 4.96 )
RDC' s 10-Year Quick Ratio Range
Min: 1.01   Max: 6.53
Current: 4.96

1.01
6.53

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.21
RDC's Dividend Yield is ranked lower than
86% of the 88 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 4.39 vs. RDC: 1.21 )
RDC' s 10-Year Dividend Yield Range
Min: 0.66   Max: 0.84
Current: 1.21

0.66
0.84
Dividend Payout 0.10
RDC's Dividend Payout is ranked higher than
98% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. RDC: 0.10 )
RDC' s 10-Year Dividend Payout Range
Min: 0.1   Max: 0.39
Current: 0.1

0.1
0.39
Yield on cost (5-Year) 1.20
RDC's Yield on cost (5-Year) is ranked lower than
85% of the 91 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.40 vs. RDC: 1.20 )
RDC' s 10-Year Yield on cost (5-Year) Range
Min: 0.66   Max: 0.84
Current: 1.2

0.66
0.84
Share Buyback Rate -2.10
RDC's Share Buyback Rate is ranked higher than
86% of the 145 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -5.70 vs. RDC: -2.10 )
RDC' s 10-Year Share Buyback Rate Range
Min: 4.1   Max: -9.8
Current: -2.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.57
RDC's Price/Tangible Book is ranked higher than
93% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 1.10 vs. RDC: 0.57 )
RDC' s 10-Year Price/Tangible Book Range
Min: 0.56   Max: 3.02
Current: 0.57

0.56
3.02
Price/Median PS Value 0.77
RDC's Price/Median PS Value is ranked higher than
76% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.69 vs. RDC: 0.77 )
RDC' s 10-Year Price/Median PS Value Range
Min: 0.31   Max: 1.93
Current: 0.77

0.31
1.93
Price/Graham Number 0.54
RDC's Price/Graham Number is ranked higher than
93% of the 219 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. RDC: 0.54 )
RDC' s 10-Year Price/Graham Number Range
Min: 0.3   Max: 25.34
Current: 0.54

0.3
25.34
Earnings Yield (Greenblatt) 5.60
RDC's Earnings Yield (Greenblatt) is ranked higher than
80% of the 198 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 5.00 vs. RDC: 5.60 )
RDC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 41.6
Current: 5.6

0.4
41.6
Forward Rate of Return (Yacktman) -10.23
RDC's Forward Rate of Return (Yacktman) is ranked higher than
74% of the 153 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: -3.58 vs. RDC: -10.23 )
RDC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -26.1   Max: 66.7
Current: -10.23

-26.1
66.7

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
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 
FPA Capital’s Top Five of Q4 Jan 23 2014 

More From Other Websites
8:21 am Rowan Cos provided fleet contract status update yesterday after the market close Nov 21 2014
Rowan Provides Fleet Contract Status Update Nov 20 2014
Credits & Debits Nov 18 2014
ROWAN COMPANIES PLC Financials Nov 14 2014
Why Rowan, an Offshore Driller, Should Be Able to Weather Falling Oil Prices Nov 14 2014
ROWAN COMPANIES PLC Files SEC form 8-K, Change in Directors or Principal Officers, Financial... Nov 12 2014
CFO Moves: Caesars Entertainment, Rowan Cos., Raven Industries Nov 11 2014
Rowan Companies Appoints New Chief Financial Officer Nov 11 2014
Rowan Companies Appoints New Chief Financial Officer Nov 11 2014
Rowan Companies Beats Q3 Earnings on Improved Dayrates Nov 10 2014
Rowan to Present at Jefferies Global Energy Conference Nov 10 2014
ROWAN COMPANIES PLC Files SEC form 10-Q, Quarterly Report Nov 07 2014
Rowan: Finally, Some Good News From an Offshore Driller Nov 05 2014
Rowan Companies plc Earnings Call scheduled for 11:00 am ET today Nov 05 2014
Rowan's profit beats estimates as jackup rig rates rise Nov 05 2014
Pisani's market open: US oil production way up Nov 05 2014
ROWAN COMPANIES PLC Files SEC form 8-K, Results of Operations and Financial Condition, Financial... Nov 05 2014
Contract driller Rowan's profit doubles on higher rates Nov 05 2014
Rowan Reports Third Quarter 2014 Results Nov 05 2014
Rowan Reports Third Quarter 2014 Results Nov 05 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