By
Brian D. Pacampara
|
More Articles
October 11, 2011
|
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract driller Diamond Offshore Drilling (NYSE: DO ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Diamond Offshore's business and see what CAPS investors are saying about the stock right now.
Diamond Offshore facts
| Headquarters (Founded) |
Houston (1989) |
| Market Cap |
$8.1 billion |
| Industry |
Oil and gas drilling |
| Trailing-12-Month Revenue |
$3.34 billion |
| Management |
CEO Lawrence Dickerson (since 2008)
CFO Gary Krenek (since 1998)
|
| Return on Equity (Average, Past 3 Years) |
32.1% |
| Cash/Debt |
$981.1 million / $1.5 billion |
| Dividend Yield |
0.9% |
| Competitors |
Noble (NYSE: NE )
Transocean (NYSE: RIG )
Ensco (NYSE: ESV )
|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 2,010 members who have rated Diamond Offshore believe the stock will outperform the S&P 500 going forward. These bulls include ipsiety and Wyatt2luv.
This past summer, ipsiety listed several of Diamond Offshore's positives: "Good balance sheet. Has tremendous growth opportunity. Is at a discount in terms of P/E and PS."
Diamond Offshore even sports a cheapish price-to-cash flow of 6.2. That represents a discount to industry peers like Noble (8.8), Transocean (7.0), and Ensco (10.3).
CAPS member Wyatt2luv elaborates on the bargain opportunity:
Current Wall Street estimates are simply too pessimistic, DO earnings power can reach $12 per share in 2013 with the addition of the 3 newbuild 12,000 ultradeepwater drillships and two other newly built drillers that started working in 2010 bought at distressed prices in 2009. That means DO added 5 of the highest end drillips since 2009. DO earned close to $9.80 per share in 2009. ... 2010 was the year of the Macondo disaster which led to DO moving rigs outside of GOM and incurring a lot of costs along the way which depressed margins and earnings.
What do you think about Diamond Offshore, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Diamond Offshore? Add it to your watchlist.
RSS Headlines
Fool UK