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Noble Corporation
(NYSE:NE)
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Rating:64Neutral
Price Target:
$42.00
▼(-2.91% Downside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by steady but not accelerating financial fundamentals (moderate leverage and strong operating cash flow, but weaker revenue trend and notably lower free cash flow). The earnings call adds support due to strong backlog/contracting momentum and maintained guidance, while technicals detract as the stock trades below key moving averages. Valuation is mixed, with a high P/E partly offset by a high dividend yield.
Positive Factors
Large backlog and contracting momentum
A $7.5bn backlog with substantial near-term conversion creates multi-quarter revenue visibility and booking optionality, underpinning durable dayrate recovery potential and smoothing revenue volatility as contracted work converts into firm cash flows over 2026–27.
Negative Factors
Declining revenue and free cash flow
A falling revenue trend and a sharp decline in FCF relative to earnings suggest weaker conversion of sales into distributable cash. Persistently lower FCF limits reinvestment and returns, raising sensitivity to higher CapEx or working-capital swings over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Large backlog and contracting momentum
A $7.5bn backlog with substantial near-term conversion creates multi-quarter revenue visibility and booking optionality, underpinning durable dayrate recovery potential and smoothing revenue volatility as contracted work converts into firm cash flows over 2026–27.
Read all positive factors
Noble Corporation (NE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.77B
Dividend Yield5.9%
Average Volume (3M)1.68M
Price to Earnings (P/E)44.6
Beta (1Y)1.09
Revenue Growth-11.10%
EPS Growth-52.07%
CountryUS
Employees4,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.95
Shares Outstanding159,642,210
10 Day Avg. Volume1,504,271
30 Day Avg. Volume1,680,789
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)0.99
Price to Sales (P/S)1.37
P/FCF Ratio10.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.20Price Target Upside6.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.82
Revenue Forecast (FY)$2.92B
Noble Corporation Business Overview & Revenue Model
Company Description
Operating globally through its subsidiaries, Noble Corporation Plc functions as an offshore drilling contractor for the oil and gas sector. The company delivers essential contract drilling services, leveraging its diverse fleet of mobile offshore ...
How the Company Makes Money
Noble makes money primarily by contracting its offshore drilling rigs to oil and gas exploration and production companies under drilling contracts. The core revenue stream is dayrate-based contract drilling revenue: customers pay a specified daily...
Noble Corporation Earnings Call Summary
Earnings Call Date:Apr 26, 2026
(Q1-2026)
| Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call emphasizes solid financial and operational results in Q1—strong adjusted EBITDA, free cash flow, a $7.5 billion backlog, and multiple contract awards—supported by industry-wide tightening (95% UDW utilization) and growing tender pipelines (+33% YoY). Management is executing reactivations, maintaining dividends, and taking actionable balance sheet steps (jackup sale proceeds, debt redemption, BOP buyouts that yield ~$25M annual EBITDA benefit). Lowlights are limited and largely discrete: a ~$15M hit from an early termination of the Mick O’Brien, a near-term dayrate reduction on a blended Courage extension, modest CapEx increase ($25M), supply-chain/timing pressures, and some concentration in Petrobras-driven contracting. Overall, positives materially outweigh the negatives, with management optimistic about 2027 and market-driven dayrate upside.Positive Updates
Strong Q1 Financial Performance
Contract drilling services revenue of $742 million, adjusted EBITDA of $277 million, adjusted EBITDA margin of 35%, cash flow from operations of $273 million, and free cash flow of $169 million.
Negative Updates
Operational Disruption from Geopolitical Events
Iran-related conflict caused evacuation and limited operational disruption; one jackup (Mick O’Brien) was impacted and sold in January but continued under a bareboat agreement while being wound down.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Performance
Contract drilling services revenue of $742 million, adjusted EBITDA of $277 million, adjusted EBITDA margin of 35%, cash flow from operations of $273 million, and free cash flow of $169 million.
Read all positive updates
Company Guidance
Noble maintained 2026 guidance for total revenue of $2.8–$3.0 billion (including roughly $150 million of reimbursable/other revenue) and adjusted EBITDA of $940 million–$1.02 billion, noting the low end of the EBITDA range is fully contracted by current backlog; capital expenditures guidance was increased by $25 million to reflect the Noble Deliverer reactivation. Management highlighted a $7.5 billion backlog (about $1.8 billion scheduled to convert in the remainder of 2026 and $2.4 billion in 2027), Q1 contract drilling revenue of $742 million, Q1 adjusted EBITDA of $277 million (35% margin), Q1 cash flow from operations of $273 million, Q1 CapEx of $104 million and Q1 free cash flow of $169 million; discrete items noted include an estimated ~$15 million negative impact from the Mick O’Brien early termination, a $73 million total BOP lease buyout ( $36.5 million completed, ~ $18 million expected in Q2 and Q4), and the opportunistic redemption of $55 million of 8.5% senior secured notes at 103, while continuing a $0.50 quarterly dividend (Q1 paid and Q2 declared).Noble Corporation Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
63
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 3.29B | 3.06B | 2.59B | 1.41B | 847.81M |
| Gross Profit | 818.74M | 648.16M | 836.55M | 743.75M | 305.44M | -7.33M |
| EBITDA | 910.73M | 1.02B | 1.02B | 872.73M | 381.10M | 498.12M |
| Net Income | 149.58M | 216.72M | 448.35M | 481.90M | 168.95M | 352.21M |
Balance Sheet | ||||||
| Total Assets | 7.24B | 7.53B | 7.96B | 5.51B | 5.23B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 456.21M | 471.40M | 247.30M | 360.79M | 476.21M | 194.14M |
| Total Debt | 1.89B | 1.98B | 2.08B | 611.87M | 672.77M | 233.09M |
| Total Liabilities | 2.76B | 2.98B | 3.31B | 1.59B | 1.63B | 572.82M |
| Stockholders Equity | 4.48B | 4.55B | 4.65B | 3.92B | 3.61B | 1.50B |
Cash Flow | ||||||
| Free Cash Flow | 283.92M | 432.15M | 80.16M | 164.76M | 106.67M | -162.87M |
| Operating Cash Flow | 881.71M | 951.68M | 655.48M | 574.34M | 280.99M | 6.17M |
| Investing Cash Flow | -258.74M | -350.07M | -959.02M | -366.51M | 375.77M | 193.45M |
| Financing Cash Flow | -491.20M | -373.93M | 188.08M | -325.79M | -367.77M | -367.94M |
Noble Corporation Technical Analysis
Positive
43.26
Price Trends
43.07
Negative
45.90
Negative
39.32
Positive
Market Momentum
-0.06
Negative
56.59
Neutral
81.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NE, the sentiment is Positive. The current price of 43.26 is above the 20-day moving average (MA) of 41.01, above the 50-day MA of 43.07, and above the 200-day MA of 39.32, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 81.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NE.
Noble Corporation Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $6.77B | 44.63 | 3.30% | 5.78% | -11.10% | -52.07% | |
63 Neutral | $5.48B | 5.51 | 36.16% | ― | -9.95% | 233.69% | |
62 Neutral | $3.45B | -9.15 | -14.16% | 2.83% | 29.73% | -272.28% | |
59 Neutral | $5.94B | -1.74 | -32.79% | ― | 12.90% | -274.70% | |
57 Neutral | $2.79B | -39.68 | -2.45% | ― | 7.91% | -120.67% | |
56 Neutral | $3.98B | -45.43 | -2.82% | 3.53% | -6.92% | 91.45% |
* Energy Sector Average
NE
Noble Corporation
42.40
17.88
72.89%
HP
Helmerich & Payne
34.57
19.71
132.61%
PTEN
Patterson-UTI
10.48
5.27
101.15%
RIG
Transocean
5.32
2.51
89.32%
VAL
Valaris
79.19
33.61
73.74%
SDRL
Seadrill Limited
44.84
16.80
59.91%
Noble Corporation Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Noble Corporation Cuts Guidance Amid Offshore Market Shift
Negative
Jul 27, 2026
Noble Corporation reported second-quarter 2026 results on July 27, with total revenue falling to $720 million and a net loss of $37 million, weighed by $43 million in impacts from the operational suspension of two Brazilian rigs and the end of a B...
Private Placements and Financing
Noble Corporation Issues New Senior Unsecured Notes Offering
Neutral
Jun 12, 2026
On June 11, 2026, Noble Finance II LLC, a wholly owned subsidiary of Noble Corporation, issued $800 million of 6.250% senior unsecured notes due June 15, 2034, under a new indenture with HSBC Bank USA as trustee. The notes, guaranteed by certain s...
Business Operations and StrategyPrivate Placements and Financing
Noble Corporation Upsizes Senior Notes Offering for Refinancing
Positive
Jun 1, 2026
On June 1, 2026, Noble Corporation announced that its wholly owned subsidiary Noble Finance II LLC priced an upsized offering of $800 million in unsecured 6.250% senior notes due 2034, increased from a previously planned $500 million tranche. The ...
Business Operations and StrategyPrivate Placements and Financing
Noble Corporation Announces Senior Notes Offering and Refinancing
Positive
Jun 1, 2026
On May 29, 2026, Noble Finance II LLC, a wholly owned subsidiary of Noble Corporation, amended its senior secured revolving credit facility, lifting total revolving commitments from $550 million to $650 million and extending the facility’s m...
Executive/Board ChangesShareholder Meetings
Noble Corporation Shareholders Back Board, Governance Framework
Positive
Apr 30, 2026
On April 29, 2026, Noble Corporation plc shareholders met for the company’s annual general meeting, where they elected Erik Bergöö and re-elected six other directors, including CEO Robert W. Eifler, to terms expiring at the 2027 me...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.