Home Sectors Energy Buy or Sell: McDermott International (NYSE: MDR)

Buy or Sell: McDermott International (NYSE: MDR)

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McDermott International is in the energy sector and trades as part of the oil and gas services industry. The company CEO is David Dickson. McDermott International Inc is an engineering, procurement, construction and installation company engaged in designing and executing complex offshore oil and gas projects.

Previous Intraday Trading Performance:

The MDR stock showed a previous change of 2.63% with an open at 6.58 and a close of 6.63. It reached an intraday high of 6.66 and a low of 6.38.

SeekingAlpha:  WTI crude tanks 5.5% to four-month lows on heightened trade worries

Liquidity:

The stock has a market cap of $1.2b with 181.7m shares outstanding, of which the float is 175.0m shares. Trading volume reached 4,955,864 shares compared to its average volume of 5,125,352 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, McDermott International shares returned 7.28% and in the past 30 trading days it returned -35.51%. Over three months, it changed -25.34%. In one year it has changed -68.86% and within that year its 52-week high was 21.65 and its 52-week low was 5.91. MDR stock is 12.17% above its 52 Week Low.

Our calculations show a 200 day moving average of 10.66 and a 50 day moving average of 7.93. Currently MDR stock is trading -37.79% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

PR Newswire:  McDermott Announces First Cargo from Cameron LNG Train 1

Earnings:

The last annual fiscal EPS for the company was reported at -17.83 that ended on 31st of December 2018. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.09. The TTM EPS is -0.55.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/29/2019): -0.39
4thQtr of 2018 (Reported on 02/25/2019): -15.33
3rdQtr of 2018 (Reported on 10/30/2018): 0.01
2ndQtr of 2018 (Reported on 07/31/2018): 0.33
1stQtr of 2018 (Reported on 04/24/2018): 0.37

Base on our calculations, the intrinsic value per share is 21.00, which means it is possibly undervalued and has a margin of safety of 68.43%.

Indicators to Watch:

Short-interest was 37,467,062, which was 20.62% of shares outstanding. The short-interest ratio or days-to-cover ratio was 8.50. This stock has a high level of short interest and may fall in value in the near term.

The current calculated beta is 2.78.

PR Newswire:  McDermott Announces First Cargo from Cameron LNG Train 1

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -224.50%, return on assets is -42.27%, profit margin is -33.33%, price-to-sales is 0.14 and price-to-book is 1.73.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 0  :Past Performance Score
 0  :Financial Strength Score
 5  :Future Growth Score
 0  :Dividend Score
 1  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.