McDermott Stock Analysis, Valuation (NYSE:MDR)
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 3.4/5
Amigobulls MDR stock analysis uses latest quarter 2018 Q2 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?
- LTM Net margins were good at 6.2% for McDermott.
- With a debt/equity ratio of 0.29, McDermott is comparatively less leveraged than its peers in the Oils-Energy sector.
- The price to earnings multiple of 8.6 is attractive when compared with the sector average PE ratio of 20.4.
- The lower PS ratio 0.6 for MDR stock versus Oils-Energy sector average of 1.6 is a positive for the company.
- McDermott generates a high return on invested capital of 11.7.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for McDermott at 11.1.
- The company has a good Free Cash Flow (FCF) margin of 3.1.
Should you sell MDR stock?
- The company saw an average annual sales decline of -3.8 in sales over the last 5 years.
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.