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Noble Corporation (NE)
NYSE:NE
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Noble Corporation
(NYSE:NE)
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Rating:73Outperform
Price Target:
$30.00
▲(9.17% Upside)
Noble Corporation's overall stock score reflects its solid financial performance and attractive valuation, bolstered by a high dividend yield. However, technical indicators suggest a bearish trend, and the earnings call highlighted near-term market challenges. Despite these, the company's strong backlog and positive long-term outlook support a favorable investment case.
Positive Factors
Negative Factors
Noble Corporation (NE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.36B
Dividend Yield9.1%
Average Volume (3M)3.48M
Price to Earnings (P/E)14.2
Beta (1Y)1.37
Revenue Growth29.23%
EPS Growth-53.65%
CountryUS
Employees5,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.13
Shares Outstanding158,824,800
10 Day Avg. Volume2,186,451
30 Day Avg. Volume3,481,538
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda5.11
Forecast
1Y Price Target
$32.25Price Target Upside17.36% Upside
Rating ConsensusHold
Number of Analyst Covering8
Noble Corporation Business Overview & Revenue Model
Company DescriptionNoble Corporation (NE) is an offshore drilling contractor that provides drilling services for the oil and gas industry. The company operates a fleet of mobile offshore drilling units (MODUs) and offers services to major energy companies globally. Noble focuses primarily on deepwater and ultra-deepwater drilling, along with supporting services such as well construction and project management. With a commitment to safety and operational excellence, Noble aims to deliver reliable drilling solutions that meet the demands of its clients in the exploration and production of oil and gas.
How the Company Makes MoneyNoble 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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
Noble Corporation reported strong financial performance and successful integration efforts but faced challenges with near-term market softness and reduced revenue guidance. Despite these challenges, the company has a positive outlook for future demand in key regions.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Noble Corporation reported strong financial results with adjusted EBITDA of $282 million and free cash flow of $107 million for Q2 2025.
Shareholder Returns
Returned $80 million to shareholders through a $0.50 per share quarterly dividend, with a total capital return of over $1.1 billion since Q4 2022.
Successful Integration
Achieved $100 million synergy target from the Diamond acquisition ahead of schedule.
New Contracts and Backlog
Secured six new contracts and increased total backlog to $6.9 billion, with $2.8 billion in new contract value year-to-date.
Positive Market Outlook
Continued strength in South America, with potential for a rebound in West Africa and promising deepwater demand projected for late 2026 and 2027.
Negative Updates
Near-Term Market Softness
Pressure on day rates and near-term gaps in rig contracts due to macroeconomic uncertainties and softening demand in certain regions.
Reduced Revenue Guidance
Lowered full-year 2025 revenue guidance to $3.2 billion to $3.3 billion due to softer spot market and unexercised options.
Idle and Disposed Rigs
Several rigs are idle or being disposed of, including the Noble Globetrotter II and Noble Highlander, highlighting surplus cost burdens.
Soft North Sea Market
Muted market conditions in the North Sea and Norway, with fiscal and regulatory headwinds affecting jackup demand.
Company Guidance
During Noble Corporation's second quarter 2025 earnings call, the company provided updated guidance for the fiscal year, highlighting several financial metrics and strategic initiatives. The company reported strong financial results with an adjusted EBITDA of $282 million and free cash flow of $107 million for Q2. Despite lowering its total revenue guidance for 2025 to a range of $3.2 billion to $3.3 billion, the company narrowed its adjusted EBITDA guidance to the upper end of its previous range, now set at $1.075 billion to $1.15 billion, driven by effective cost management. The company also emphasized its ongoing commitment to returning capital to shareholders, having returned $80 million through a $0.50 per share quarterly dividend, with a cumulative capital return exceeding $1.1 billion since Q4 2022. Noble achieved its $100 million synergy target from the Diamond acquisition ahead of schedule, focusing now on optimization. The company secured new contracts worth a total contract value of $2.8 billion year-to-date, contributing to a total backlog of $6.9 billion as of August 5. Looking ahead, Noble Corporation anticipates a sequential decline in adjusted EBITDA in Q3 due to contract rollovers and planned downtime but remains constructive on the long-term market, expecting a significant rebound starting in the second half of 2026.Noble Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.30B | 3.06B | 2.59B | 1.41B | 847.81M | 964.27M |
| Gross Profit | 967.33M | 744.48M | 743.75M | 305.44M | -7.33M | -25.53M |
| EBITDA | 1.16B | 1.02B | 765.95M | 381.10M | 34.63M | -3.70B |
| Net Income | 461.18M | 448.35M | 481.90M | 168.95M | 352.21M | -3.98B |
Balance Sheet | ||||||
| Total Assets | 9.12B | 7.96B | 5.51B | 5.23B | 2.07B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 187.09M | 247.30M | 360.79M | 476.21M | 194.14M | 365.03M |
| Total Debt | 3.87B | 1.98B | 611.87M | 672.77M | 216.00M | 6.91M |
| Total Liabilities | 4.53B | 3.31B | 1.59B | 1.63B | 572.82M | 4.58B |
| Stockholders Equity | 4.18B | 4.65B | 3.92B | 3.61B | 1.50B | -311.39M |
Cash Flow | ||||||
| Free Cash Flow | 274.92M | 80.16M | 164.76M | 106.67M | -162.87M | 124.31M |
| Operating Cash Flow | 797.85M | 655.48M | 574.34M | 280.99M | 6.17M | 273.20M |
| Investing Cash Flow | -890.55M | -959.02M | -366.51M | 375.77M | 193.45M | -121.52M |
| Financing Cash Flow | 184.46M | 188.08M | -325.79M | -367.77M | -367.94M | 107.44M |
Noble Corporation Technical Analysis
Negative
27.48
Price Trends
28.41
Negative
27.79
Negative
26.32
Positive
Market Momentum
-0.32
Positive
43.83
Neutral
25.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NE, the sentiment is Negative. The current price of 27.48 is below the 20-day moving average (MA) of 28.63, below the 50-day MA of 28.41, and above the 200-day MA of 26.32, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.36B | 14.24 | 7.18% | 9.10% | 29.23% | -53.65% | |
70 Neutral | $3.44B | 12.58 | 12.23% | ― | 18.78% | -72.57% | |
69 Neutral | $2.30B | 7.12 | -1.19% | 4.33% | 25.92% | -109.50% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $1.82B | 25.33 | 2.60% | ― | -13.36% | -82.21% | |
58 Neutral | $3.56B | ― | -14.99% | ― | 23.26% | -284.22% | |
54 Neutral | $2.16B | ― | -27.16% | 5.81% | -7.98% | -1011.04% |
* Energy Sector Average
NE
Noble Corporation
27.48
-2.54
-8.46%
HP
Helmerich & Payne
23.11
-10.29
-30.81%
PTEN
Patterson-UTI
5.51
-2.02
-26.83%
RIG
Transocean
3.26
-1.00
-23.47%
VAL
Valaris
48.33
-2.94
-5.73%
SDRL
Seadrill Limited
29.55
-6.52
-18.08%
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.