Seadrill Limited (SDRL) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 833.98K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.18
• Revenue Growth: -13.36%
• EPS Growth: -82.21%
• Country: US
• Employees: 3,300
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.68
• Shares Outstanding: 62,225,384
• 10 Day Avg. Volume: 803,040
• 30 Day Avg. Volume: 833,983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 6.41
• Enterprise Value/Ebitda: 5.61
• 1Y Price Target: $41.67
• Price Target Upside: 27.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $32.00 ▼(-2.32% Downside)

Seadrill's strong financial performance and positive earnings call insights are offset by valuation concerns and a significant legal judgment. The stock shows stability in technical indicators, but external challenges and market conditions require careful monitoring.

Positive Factors

Market Demand

Demand for offshore oil rigs would begin to consume supply in coming months.

Revenue Performance

SDRL reported first quarter revenue of $335 million compared to the estimate of $281 million.

Negative Factors

Legal Issues

SDRL is involved in a lawsuit with SFL Hercules that resulted in being ordered to pay $48 million.

Operational Delays

SDRL disclosed a delay in West Polaris beginning planned work in Brazil and the West Tellus being offline for 50 days, which would have material impact on first quarter results.

Seadrill Limited Business Overview & Revenue Model

Company Description

Seadrill Limited provides offshore contract drilling services to the oil and gas industry worldwide. It operates in three segments: Harsh Environment, Floaters, and Jack-ups Rigs. The company owns and operates drillships, semi-submersible rigs, and jack-up rigs for operations in shallow and ultra-deep-water in benign and harsh environments. It offers operation support and management services to third parties, as well as related and non-related companies. As of April 8, 2022, the company owned a fleet of 21 offshore drilling units consisting of two harsh-environment rigs, two benign-environment semi-submersible rigs, six drill-ships, and 11 jack-up rigs. It serves oil super-majors, state-owned national oil companies, and independent oil and gas companies. Seadrill Limited was incorporated in 2005 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Seadrill generates revenue primarily through the provision of drilling services under long-term contracts with major oil and gas companies. The company's revenue model is largely based on day-rate contracts, where clients pay a fixed daily rate for the use of its drilling rigs and associated services. Key revenue streams include drilling contracts, project management services, and ancillary services such as maintenance and logistical support. Significant partnerships with major industry players, along with strategic alliances in various regions, enhance Seadrill's market presence and contribute to its earnings. Additionally, the company's focus on maintaining a modern and efficient fleet helps optimize operational costs and improve profitability.

Seadrill Limited Financial Statement Overview

Summary

Seadrill Limited has shown strong profitability with a 100% gross profit margin and a 32.2% net profit margin in 2024. However, challenges include a slight revenue decrease and fluctuations in equity and total assets.

Income Statement

Seadrill Limited has shown impressive recovery and growth in recent years. The gross profit margin improved significantly from a negative margin in earlier years to a healthy 100% in 2024, indicating strong profitability in its operations. The net profit margin for 2024 was 32.2%, demonstrating substantial net income relative to revenue, primarily due to reduced debt and operational improvements. However, revenue decreased slightly by 5.8% from 2023 to 2024, suggesting potential challenges in maintaining top-line growth.

Balance Sheet

The debt-to-equity ratio is relatively low at 0.21 in 2024, reflecting a stable capital structure with manageable debt levels. The equity ratio of 70.2% also indicates strong shareholder equity relative to total assets. Return on equity for 2024 was 15.3%, showcasing efficient use of equity to generate profits. However, the company has experienced fluctuations in its equity and total assets over the years, which may pose risks if not managed properly.

Cash Flow

Seadrill's free cash flow for 2024 remained stable compared to 2023, with a free cash flow to net income ratio of 0.20, indicating the company is generating adequate cash relative to its net income. The operating cash flow to net income ratio decreased, reflecting a potential area for improvement in converting net income into cash. Positive free cash flow and reduced capital expenditures suggest prudent financial management, although the decline from previous years suggests a need for careful cash flow planning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.39B	1.47B	977.00M	840.00M	894.00M
Gross Profit	285.00M	293.00M	565.00M	277.00M	54.00M	-37.00M
EBITDA	326.00M	562.00M	494.00M	224.00M	-336.00M	-3.69B
Net Income	372.00M	446.00M	300.00M	3.67B	-572.00M	-4.43B
Balance Sheet
Total Assets	4.06B	4.16B	4.22B	2.80B	2.90B	3.96B
Cash, Cash Equivalents and Short-Term Investments	404.00M	478.00M	697.00M	480.00M	375.00M	485.00M
Total Debt	618.00M	618.00M	610.00M	518.00M	908.00M	6.09B
Total Liabilities	1.16B	1.24B	1.24B	1.10B	1.34B	7.10B
Stockholders Equity	2.91B	2.92B	2.98B	1.70B	1.56B	-3.14B
Cash Flow
Free Cash Flow	-147.00M	-69.00M	186.00M	-137.32M	-183.00M	-447.00M
Operating Cash Flow	32.00M	88.00M	287.00M	8.83M	-154.00M	-420.00M
Investing Cash Flow	200.00M	226.00M	42.00M	336.42M	37.00M	-32.00M
Financing Cash Flow	-413.00M	-532.00M	-200.00M	-356.04M	0.00	-163.00M

Seadrill Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDRL, the sentiment is Positive. The current price of 32.76 is above the 20-day moving average (MA) of 30.47, above the 50-day MA of 29.60, and above the 200-day MA of 29.64, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 84.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDRL.

Seadrill Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORR	67 Neutral	$801.34M	12.48	5.39%	7.89%	7.73%	-25.36%
HP	67 Neutral	$2.07B	7.12	-1.19%	4.95%	25.92%	-109.50%
SDRL	67 Neutral	$2.03B	28.08	2.60%	―	-13.36%	-82.21%
Sector *	65 Neutral	$15.28B	7.48	3.19%	5.33%	4.10%	-60.58%
HLX	64 Neutral	$970.10M	20.41	3.27%	―	-8.19%	―
RIG	58 Neutral	$2.92B	―	-14.99%	―	23.26%	-284.22%
SOC	―	$2.29B	―	-179.45%	―	―	―

Seadrill Limited Corporate Events

Seadrill Limited Adjusts Executive Salaries for 2025

On August 27, 2025, Seadrill Limited‘s Joint Nomination and Remuneration Committee approved new annual base salaries for several executive officers, effective September 15, 2025. Notably, Torsten Sauer-Petersen’s salary increase reflects his expanded role as Executive Vice President, Chief Technology & Sustainability Officer. This adjustment highlights the company’s strategic focus on technology and sustainability, potentially impacting its operational priorities and market positioning.

Seadrill Limited Faces $53 Million Court Judgment

In a recent legal development, Seadrill Limited was ordered by the High Court of Justice in England and Wales to pay damages to a claimant for a breach of contract related to negotiations in 2018 and 2019. The judgment, rendered on July 11, 2025, could result in a liability of up to $53 million for Seadrill, excluding potential legal fees. The company is considering its options, including a possible appeal, and anticipates a $10 million impact on its Adjusted EBITDA for the year 2025.