Seadrill Limited Common Shares (SDRL)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Seadrill as a classic cyclical offshore driller, not a compounding franchise. It owns and operates floaters and jackups for oil majors and national oil companies. The moat is thin: rigs are capital-intensive assets, but day rates and utilization swing with oil prices and offshore capex. The filed numbers show how uneven this is. In fiscal 2023, net income was $300.0M on revenue of $1.2B; fiscal 2024, net income was $446.0M on revenue of $1.0B; then fiscal 2025 swung to a net loss of $77.0M on revenue of $1.1B. More recently, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $355.0M, net income of $29.0M and diluted EPS of $0.47, better than fiscal Q1 2026's $277.0M revenue and $7.0M net loss. That is a turnaround pattern, and FairStock classifies it as TURNAROUND because of the latest-year loss after earlier profits. Financial health is only fair: debt-to-equity is 0.26, but trailing free cash flow is negative $132.0M and the FCF yield is negative 4.3%; the Altman Z-Score of 2.11 sits in the grey zone. Profitability is poor: ROE 0.03% and ROCE 2.19%. Valuation gives me pause. At the close on 2026-10-13, the price was $49.00, while FairStock's P/E is 1,633.33 on EPS of $0.03 and P/B is 1.07. The Graham Number is $5.56, implying a negative margin of safety of 781.29%. EV/EBITDA is 9.95, and PEG is 9.66. I would want evidence of durable day-rate and utilization improvement before calling this a bargain.

In plain English: Seadrill rents offshore drilling rigs to oil and gas companies. The business looks unstable: it lost money in fiscal 2025 and used more cash than it generated over the past year, though the latest filed quarter showed a small profit. At $49.00 on 2026-10-13, the shares look expensive compared with its tiny earnings and the value of its net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer