Noble Corporation PLC (NE)
NYSE:NE
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Noble Corporation
(NYSE:NE)
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Rating:77Outperform
Price Target:
$57.00
▲(21.87% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by solid fundamentals led by strong cash flow and a reasonably supported balance sheet, tempered by recent revenue softness and margin/ROE step-down. Technicals are constructive with a clear uptrend and positive momentum. Valuation is supported by a reasonable P/E and a high dividend yield, while the latest earnings call reinforced outlook stability via maintained guidance and strong backlog visibility.
Positive Factors
Cash Generation
Sustained, strong operating cash flow (~$954M TTM) and positive free cash flow (~$444M TTM) provide durable internal funding for capex, dividends, debt paydowns and opportunistic buybacks. This cash cushion enhances resilience through offshore cycle swings and funds strategic fleet upgrades.
Negative Factors
Revenue Pause & Margin Compression
A recent TTM revenue decline (~-2.7%) and step-down in margins versus 2023–2024 indicate a near-term pause in topline momentum and thinner profitability. Persisting weakness would limit reinvestment, slow ROE recovery and reduce the pace of deleveraging or capital returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained, strong operating cash flow (~$954M TTM) and positive free cash flow (~$444M TTM) provide durable internal funding for capex, dividends, debt paydowns and opportunistic buybacks. This cash cushion enhances resilience through offshore cycle swings and funds strategic fleet upgrades.
Read all positive factors
Noble Corporation (NE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.61B
Dividend Yield8.85%
Average Volume (3M)1.54M
Price to Earnings (P/E)16.1
Beta (1Y)1.09
Revenue Growth-2.99%
EPS Growth-52.89%
CountryUS
Employees5,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)1.45
Shares Outstanding159,545,940
10 Day Avg. Volume1,291,438
30 Day Avg. Volume1,540,626
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 Cap1.15
Enterprise Value/Revenue3.09
Enterprise Value/Gross Profit13.78
Enterprise Value/Ebitda8.90
Forecast
1Y Price Target
$53.33Price Target Upside14.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.1
Revenue Forecast (FY)$2.94B
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...
How the Company Makes Money
Noble primarily makes money by contracting its drilling rigs and crews to customers (typically oil and gas producers, including national oil companies and integrated/independent E&P companies) under offshore drilling contracts.
Key revenue stream...
Noble Corporation Earnings Call Summary
Earnings Call Date:Apr 26, 2026
(Q1-2026)
| Next Earnings Date:Aug 05, 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
66
Positive
Balance Sheet
72
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.20B | 3.29B | 3.06B | 2.59B | 1.41B | 847.81M |
| Gross Profit | 716.14M | 648.16M | 836.55M | 743.75M | 305.44M | -7.33M |
| EBITDA | 1.11B | 1.10B | 1.12B | 916.68M | 370.15M | 34.63M |
| Net Income | 229.14M | 216.72M | 448.35M | 481.90M | 168.95M | 352.21M |
Balance Sheet | ||||||
| Total Assets | 7.48B | 7.53B | 7.96B | 5.51B | 5.23B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 662.65M | 471.40M | 247.30M | 360.79M | 476.21M | 194.14M |
| Total Debt | 1.92B | 1.98B | 2.08B | 611.87M | 672.77M | 233.09M |
| Total Liabilities | 2.89B | 2.98B | 3.31B | 1.59B | 1.63B | 572.82M |
| Stockholders Equity | 4.59B | 4.55B | 4.65B | 3.92B | 3.61B | 1.50B |
Cash Flow | ||||||
| Free Cash Flow | 444.07M | 432.15M | 80.16M | 164.76M | 106.67M | -162.87M |
| Operating Cash Flow | 953.91M | 951.68M | 655.48M | 574.34M | 280.99M | 6.17M |
| Investing Cash Flow | -149.38M | -350.07M | -959.02M | -366.51M | 375.77M | 193.45M |
| Financing Cash Flow | -446.67M | -373.93M | 188.08M | -325.79M | -367.77M | -367.94M |
Noble Corporation Technical Analysis
Positive
46.77
Price Trends
49.42
Positive
43.41
Positive
35.90
Positive
Market Momentum
1.35
Negative
64.88
Neutral
92.28
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 46.77 is below the 20-day moving average (MA) of 51.25, below the 50-day MA of 49.42, and above the 200-day MA of 35.90, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.61B | 16.14 | 5.01% | 8.85% | -2.99% | -52.89% | |
67 Neutral | $4.66B | -41.73 | -3.67% | 5.42% | -9.41% | 88.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $8.19B | 25.89 | -32.79% | ― | 12.90% | -274.70% | |
64 Neutral | $7.59B | -103.42 | 36.16% | ― | -9.95% | 233.69% | |
64 Neutral | $3.35B | 18.11 | -0.84% | ― | 7.91% | -120.67% | |
60 Neutral | $4.09B | -15.35 | -14.16% | 3.24% | 29.73% | -272.28% |
* Energy Sector Average
NE
Noble Corporation
53.97
32.11
146.91%
HP
Helmerich & Payne
40.88
26.22
178.85%
PTEN
Patterson-UTI
12.28
6.98
131.92%
RIG
Transocean
7.34
4.88
198.37%
VAL
Valaris
109.59
73.21
201.24%
SDRL
Seadrill Limited
53.80
30.56
131.50%
Noble Corporation Corporate Events
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...
Business Operations and StrategyDividendsFinancial Disclosures
Noble Corporation Posts Strong Q1 Results, Boosts Backlog
Positive
Apr 27, 2026
Noble Corporation reported solid first-quarter 2026 results on April 26, 2026, with net income rising to $121 million and adjusted EBITDA increasing to $277 million on higher fleet utilization and lower contract drilling costs. Total revenue reach...
Executive/Board ChangesShareholder Meetings
Noble Corporation Announces Planned Board Director Resignation
Neutral
Mar 16, 2026
On March 12, 2026, Noble Corporation plc announced that board member Kristin Holth has resigned from her position as director, effective at the commencement of the company’s 2026 Annual General Meeting of shareholders, and will not stand for...
Business Operations and StrategyDividendsFinancial Disclosures
Noble Corporation Reports Strong 2025 Results and Outlook
Positive
Feb 11, 2026
Noble Corporation plc reported its fourth-quarter and full-year 2025 results on February 11, 2026, highlighting approximately $1.3 billion in new contract awards since October that lifted total backlog to $7.5 billion, and the completed sale of fi...
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.