Noble Corporation (NE) AI Stock Analysis

• Market Cap: $4.72B
• Dividend Yield: 8.41%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.40
• Revenue Growth: 24.34%
• EPS Growth: -59.48%
• Country: US
• Employees: 5,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.19
• Shares Outstanding: 158,846,730
• 10 Day Avg. Volume: 1,932,395
• 30 Day Avg. Volume: 1,515,110
• PEG Ratio: -0.77
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 58.26
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 7.41
• Enterprise Value/Ebitda: 5.33
• 1Y Price Target: $33.25
• Price Target Upside: 11.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $3.24B

• Rating: 72 Outperform
• Price Target: $33.00 ▲(11.00% Upside)

Noble Corporation's overall stock score reflects a stable financial performance with some challenges, strong technical indicators suggesting bullish momentum, and a positive earnings call highlighting strategic growth and operational excellence. The valuation is slightly high, but the attractive dividend yield provides a compensating factor.

Positive Factors

Increased Backlog

An increased backlog of $7 billion indicates strong demand for Noble's services, ensuring revenue stability and growth potential over the coming years.

Operational Excellence

Operational excellence in key regions like Guyana and the U.S. Gulf enhances Noble's reputation and competitive advantage, supporting long-term client retention and contract wins.

Positive Market Outlook

A positive market outlook with improved deepwater contracting trends suggests a favorable environment for Noble's growth and sustained demand for its high-specification rigs.

Negative Factors

Declining Profitability

Decreasing net profit margins indicate challenges in maintaining profitability, which could impact Noble's ability to reinvest in operations and manage debt effectively.

Sequential Revenue Decline

Sequential revenue decline suggests potential volatility in earnings, which could affect investor confidence and the company's financial planning.

Free Cash Flow Challenges

Challenges in free cash flow growth may limit Noble's ability to fund new projects, pay down debt, or return capital to shareholders, impacting long-term financial health.

Noble Corporation Business Overview & Revenue Model

Company Description

Noble Corporation, together with its subsidiaries, operates as an offshore drilling contractor for the oil and gas industry worldwide. The company provides contract drilling services to the oil and gas industry through its fleet of mobile offshore drilling units. As of February 16, 2022, it operated a fleet of 20 offshore drilling units, which included 12 floaters and 8 jackups. The company was formerly known as Noble Holding Corporation plc. Noble Corporation was founded in 1921 and is headquartered in Sugar Land, Texas.

How the Company Makes Money

Noble Corporation generates revenue primarily through day rates charged for the use of its drilling rigs and related services. The company enters into contracts with oil and gas companies for the leasing of its drilling units, which can range from short-term contracts to long-term agreements spanning several years. Key revenue streams include the utilization of its high-specification offshore rigs, which are in demand due to the ongoing exploration activities in deepwater regions. Additionally, Noble may also earn revenue from providing supplemental services, such as crew training and equipment maintenance. Significant partnerships with major oil producers enhance its revenue potential, as these collaborations often lead to multi-year contracts that ensure steady cash flow. Market dynamics, including oil prices and demand for offshore drilling capabilities, also play a crucial role in influencing the company's earnings.

Noble Corporation Financial Statement Overview

Summary

Noble Corporation's financial performance is stable but faces challenges. The income statement shows operational efficiency with decent margins, but declining profitability. The balance sheet is stable with manageable debt, though profitability from equity is decreasing. Cash flow metrics indicate challenges in free cash flow growth, but cash generation remains adequate.

Income Statement

Noble Corporation's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 7.3%, which is concerning. However, the company maintains a decent gross profit margin of 23.4% and an EBIT margin of 15.8%, indicating operational efficiency. The net profit margin has decreased to 6.6% from 14.7% in the previous year, reflecting reduced profitability.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is 0.44, indicating a manageable level of debt relative to equity. Return on equity has decreased to 4.9%, suggesting lower profitability from shareholders' equity. The equity ratio stands at 59.3%, which is stable, showing a solid equity base.

Cash Flow

Cash flow analysis shows challenges with a negative free cash flow growth rate of -4.2% in the TTM. The operating cash flow to net income ratio is 1.16, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.44 suggests limited free cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.45B	3.06B	2.59B	1.41B	847.81M	964.27M
Gross Profit	807.24M	836.55M	743.75M	305.44M	-7.33M	-25.53M
EBITDA	1.12B	1.02B	765.95M	381.10M	34.63M	-3.70B
Net Income	226.73M	448.35M	481.90M	168.95M	352.21M	-3.98B
Balance Sheet
Total Assets	7.64B	7.96B	5.51B	5.23B	2.07B	4.26B
Cash, Cash Equivalents and Short-Term Investments	477.95M	247.30M	360.79M	476.21M	194.14M	365.03M
Total Debt	1.98B	2.08B	611.87M	672.77M	233.09M	6.91M
Total Liabilities	3.11B	3.31B	1.59B	1.63B	572.82M	4.58B
Stockholders Equity	4.53B	4.65B	3.92B	3.61B	1.50B	-311.39M
Cash Flow
Free Cash Flow	392.33M	80.16M	164.76M	106.67M	-162.87M	124.31M
Operating Cash Flow	900.77M	655.48M	574.34M	280.99M	6.17M	273.20M
Investing Cash Flow	-388.90M	-959.02M	-366.51M	375.77M	193.45M	-121.52M
Financing Cash Flow	-432.45M	188.08M	-325.79M	-367.77M	-367.94M	107.44M

Noble Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NE, the sentiment is Neutral. The current price of 29.73 is below the 20-day moving average (MA) of 30.72, above the 50-day MA of 29.48, and above the 200-day MA of 26.08, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NE.

Noble Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VAL	76 Outperform	$3.77B	9.65	17.49%	―	6.81%	-61.94%
HP	73 Outperform	$3.04B	―	-5.87%	3.24%	35.89%	-148.39%
NE	72 Outperform	$4.72B	21.31	4.92%	8.41%	24.34%	-59.48%
SDRL	66 Neutral	$2.05B	63.60	1.18%	―	-9.31%	-91.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
RIG	60 Neutral	$4.71B	―	-32.05%	―	16.93%	-335.82%
PTEN	56 Neutral	$2.36B	―	-4.00%	5.15%	-16.59%	83.95%

Noble Corporation Corporate Events

Noble Corporation Reports Q3 2025 Financial Results

Noble Corporation announced its third quarter 2025 results, reporting a net loss of $21 million and adjusted EBITDA of $254 million. The company declared a $0.50 per share cash dividend for Q4, bringing total shareholder returns for 2025 to $340 million. Noble secured approximately $740 million in new contracts, increasing its backlog to $7.0 billion. Despite a decrease in rig utilization, Noble’s recent contract wins and backlog expansion position it well for a potential recovery in deepwater utilization by late 2026 or early 2027.