Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.50%, lower than industry average of 7.50%.

Growth Trajectory

Profitability

In the growth phase company makes 11.49% profit on every dollar of sales, higher than industry average of 4.87%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.17% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
150.61M USD
Equity Value
152.92M USD
FCF Yield
73.29%
Average ROIC
13.95%
Cost of Capital
7.77%
P/E Ratio
19.66x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues103.86M USD103.10M USD
Operating Income or EBIT11.95M USD4.54M USD
Interest Expense85k USD84.35k USD
Book Value Of Equity60.59M USD53.47M USD
Book Value Of Debt5.23M USD5.23M USD
Cash and Marketable Securities7.54M USD8.37M USD
Number of Shares Outstanding43.32M--
Minority interests0 USD0 USD
Current Stock Price2.77 USD--
Effective Tax Rate49.00%--
Marginal Tax Rate22.00%--

Performance vs Industry

Revenue Growth
-6.76%
0.73%Company
vs
7.49%Industry
Below Industry
Operating Margin
+6.64%
11.50%Company
vs
4.87%Industry
Above Industry
NorAm Drilling AS demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 67% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 101.13M USD Add
Present Value (Cash Flow Over Next 10 Years) 49.48M USD Add
Value of Operating Assets 150.61M USD Sub-total
Debt 5.23M USD Subtract
Minority Interests — Subtract
Cash 7.54M USD Add
Value of Equity 152.92M USD Sub-total
Number of Shares 43.32M shares Divisor
Estimated Value per Share (Fair Value) 3.53 USD Total
Current Market Price 2.76 USD Reference

Financial Projections

Total FCF Present Value
49.48M USD
Avg Revenue Growth
6.01%
Avg Operating Margin
11.48%
Avg ROIC
13.95%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue112.97M USD121.44M USD130.54M USD140.33M USD150.85M USD161.28M USD171.50M USD181.38M USD190.77M USD199.55M USD208.72M USD
Growth Rate 8.77% 7.49% 7.49% 7.49% 7.49% 6.91% 6.33% 5.75% 5.17% 4.59% 4.59%
PROFITABILITY
Operating Income13.00M USD13.96M USD15.00M USD16.11M USD17.31M USD18.51M USD19.68M USD20.82M USD21.89M USD22.90M USD23.96M USD
Operating Margin 11.50% 11.49% 11.49% 11.48% 11.47% 11.47% 11.47% 11.47% 11.47% 11.47% 11.47%
EBIT (1-tax)6.63M USD7.12M USD7.65M USD8.21M USD8.83M USD10.44M USD12.16M USD13.99M USD15.89M USD17.86M USD18.68M USD
CASH FLOW
Reinvestment2.59M USD2.78M USD2.99M USD3.21M USD3.19M USD3.26M USD3.15M USD2.99M USD2.80M USD2.93M USD9.73M USD
Free Cash Flow4.04M USD4.33M USD4.65M USD5.00M USD5.63M USD7.17M USD9.01M USD10.99M USD13.09M USD14.93M USD8.95M USD
Terminal Value--------------------211.65M USD
Present Value3.77M USD3.77M USD3.78M USD3.79M USD3.98M USD4.72M USD5.50M USD6.20M USD6.81M USD7.13M USD—
EFFICIENCY
ROIC 11.37% 11.69% 12.01% 12.33% 12.64% 14.29% 15.94% 17.60% 19.27% 20.95% 8.83%
Cost of Capital 7.16% 7.16% 7.16% 7.16% 7.16% 7.50% 7.83% 8.16% 8.49% 8.83% 8.83%
Sales/Capital 3.26x 3.26x 3.26x 3.26x 3.26x 3.13x 3.13x 3.13x 3.13x 3.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($M)
Reinvestment ($M)