Independence Story

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ICD -- USA Stock  

USD 6.26  0.32  4.86%

While some baby boomers are getting worried about energy space, it is reasonable to digest Independence Contract Drilling. We will evaluate why we are still confident in anticipation of a recovery. Is the firm operations in 2021 sustainable? Here we are going to cover Independence Contract perspective on valuation to give you a better outlook on taking a position in this stock.
Published few days ago
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Is Independence Contract (NYSE:ICD) ready for a correction?
Independence Contract has 148.09 M in debt with debt to equity (D/E) ratio of 0.51, which is OK given its current industry classification. We provide advice to complement the regular expert consensus on Independence Contract. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Independence Contract Drilling using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Independence Contract based exclusively on its fundamental and basic technical indicators. By analyzing Independence Contract's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Independence Contract's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Independence Contract. We calculate exposure to Independence Contract's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Independence Contract's related companies.

Independence Contract Investment Alerts

Independence investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Independence Contract Drilling performance across your portfolios.Please check all investment alerts for Independence

Independence Contract Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Independence value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Independence Contract competition to find correlations between indicators driving the intrinsic value of Independence.

How Independence utilizes its cash?

To perform a cash flow analysis of Independence Contract, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Independence Contract is receiving and how much cash it distributes out in a given period. The Independence Contract cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Independence Contract Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 32.11 Million

Going after Independence Financials

The latest price surge of Independence Contract may raise some interest from shareholders. The stock closed today at a share price of 6.64 on 1,696,900 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.49. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Independence Contract Drilling partners.
 2018 2019 2020 2021 (projected)
Revenues USD142.61 M203.6 M234.14 M252.63 M
Revenues142.61 M203.6 M234.14 M252.63 M

Margins Breakdown

Independence profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Independence Contract itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Independence Contract profit margins.
Operating Margin(19.82)
EBITDA Margin(0.007082)
Gross Margin0.33
Profit Margin(0.29)

Independence Contract Revenue Per Employee is increasing over the last 8 years. The latest value of Independence Contract Revenue Per Employee is 249,697. Also, Independence Contract Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The previous year's value of Independence Contract Earnings Before Interest Taxes and Depreciation Amortization EBITDA was -1,331,337.

Over 3 percent surge for Independence Contract. What does it mean for shareholders?

The coefficient of variation is down to 433.16 as of today. Independence Contract Drilling is displaying above-average volatility over the selected time horizon. Investors should scrutinize Independence Contract Drilling independently to ensure intended market timing strategies are aligned with expectations about Independence Contract volatility.

The Bottom Line

Although some firms within the oil & gas drilling industry are still a little expensive, even after the recent corrections, Independence Contract may offer a potential longer-term growth to shareholders. The bottom line, as of the 20th of February 2021, our overall 30 days buy-hold-sell recommendation on the firm is Strong Hold. We believe Independence Contract is currently overvalued with below average odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Independence Contract Drilling. Please refer to our Terms of Use for any information regarding our disclosure principles.

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