McDermott Stock Analysis, Valuation (NYSE:MDR)
McDermott Stock Analysis
View the McDermott stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for MDR stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
McDermott International Stock Rating 3.8/5
Amigobulls MDR stock analysis uses latest quarter 2017 Q4 financial data like McDermott revenue growth, profit margins and cash flows. McDermott valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our McDermott stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy MDR stock?
- McDermott's average operating margin of 10.9% was exceptional.
- Net margins stood at a healthy 6% (average) for McDermott in the Trailing Twelve Months.
- With its debt/equity ratio of 0.3, McDermott has a lower debt burden when compared to the Oils-Energy average.
- The McDermott stock currently trades at a price to earnings ratio of 9.5. We rate this as a positive, compared to the industry average of 24.1.
- MDR stock is trading at a favorable price to sales multiple of 0.6 as against the Oil Field Machines and equipment industry average multiple of 1.7.
- McDermott's return on invested capital of 11.8% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for McDermott at 10.6%.
- The company has a healthy free cash flow margin of 4.9%.
Should you sell MDR stock?
- 2017 Q4 revenue growth of 11.9% YoY was meagre.
- The company saw an average annual sales decline of -3.9% in sales over the last 5 years.
- Cash flow from operations is 0 times net income which is a negative signal.
McDermott Related Company Stock Videos
Amigobulls McDermott stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
McDermott revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.